In this article, we discuss the 5 best Dow stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 15 Best Dow Stocks To Buy Now.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 104
UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified healthcare firm. In late October, investment advisory Mizuho maintained a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) stock and raised the price target to $584 from $549.
At the end of the third quarter of 2023, 104 hedge funds in the database of Insider Monkey held stakes worth $10.9 billion in UnitedHealth Group Incorporated (NYSE:UNH), compared to 111 in the preceding quarter worth $10.1 billion.
In its Q3 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE:UNH) was one of them. Here is what the fund said:
“The top contributors in the quarter were Eli Lilly, Jacobs, Alphabet, Costco, and UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth responded well to a solid second quarter, with a better medical loss ratio driving the better-than-expected results. Additionally, UNH modestly raised guidance for the full year.
We updated the sustainable scorecard for UnitedHealth Group. The company continues to have Above Average Corporate Governance with a clear policy on separating the roles of the Chair of the Board and the CEO. We also rate the company Above Average on Social factors due to its clear cybersecurity, privacy, and data governance policies. The company continues to diversify its top management positions, where 40% of top management positions are held by women, up from 37% in 2020. We reduced our Environment rating to Average from Above Average as the company has significantly expanded its footprint in the last few years by acquiring local providers. The company is at the beginning of its journey to source renewable electricity for 100% of its operations by 2030.”
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 109
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial services company worldwide. It is one of the top financial stocks to invest in. On December 14, investment advisory Wells Fargo maintained an Overweight rating on JPMorgan Chase & Co. (NYSE:JPM) stock and raised the price target to $200 from $185.
At the end of the third quarter of 2023, 109 hedge funds in the database of Insider Monkey held stakes worth $6.6 billion in JPMorgan Chase & Co. (NYSE:JPM), compared to 106 in the preceding quarter worth $4.3 billion.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. On November 16, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $240 from $225.
At the end of the third quarter of 2023, 134 hedge funds in the database of Insider Monkey held stakes worth $179 billion in Apple Inc. (NASDAQ:AAPL), compared to 135 in the previous quarter worth $194 billion.
In its Q3 2023 investor letter, Baron Funds highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“After a strong start to the year, shares of Apple Inc. partially retraced their gains this quarter. Mixed second calendar quarter financial results, with iPhone, iPad, and Wearables revenue coming in just shy of consensus expectations, coupled with elevated investor concerns about the macro economy and potential weakness in consumer spending later this year, pressured shares. Despite these quarterly fluctuations in product sales, we are encouraged by several long-term trends, including: (1) revenue from higher-margin services like the App Store, iCloud, and Apple Pay, which are growing faster than the overall business, driving better revenue visibility and higher free-cash-flow (FCF) margins; (2) continued gains in global market share in smartphones, wearables, and other hardware categories; and (3) consistent returns of capital to shareholders via share repurchases and dividends. On top of these trends in the core business, Apple is thoughtfully investing in new categories like augmented reality, search, financial services, and streaming media content. We took advantage of weakness in the quarter to add to our position in Apple.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 157
Visa Inc. (NYSE:V) is a California-based payments technology firm. On December 18, investment advisory Barclays maintained a Buy rating on Visa Inc. (NYSE:V) stock and raised the price target to $304 from $278.
At the end of the third quarter of 2023, 167 hedge funds in the database of Insider Monkey held stakes worth $24.4 billion in Visa Inc. (NYSE:V), compared to 171 in the preceding quarter worth $24.9 billion.
In its Q3 2023 investor letter, Ensemble Capital Management, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“Mastercard is a company that pretty much everyone has heard of. In fact, when we meet with Ensemble’s clients, we occasionally tell them that we’re nearly certain that they are carrying a Mastercard in their wallet or purse as we speak, and if not, they are carrying a Visa Inc. (NYSE:V). Most people carry both.
People carry Mastercard and Visa because they are accepted nearly everywhere in developed markets. And they are accepted in most emerging economies, at least at locations where higher income people spend money. As a shopper you can show up at a bodega in Peru, a high end hotel in Tokyo, a truck stop in Alabama, or an ice cream cart in Milan, show them a piece of plastic and they’ll let you walk away with goods and services without any worry that they aren’t going to get paid…” (Click here to read the full text)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. On November 16, investment advisory Jefferies maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $400.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 24 million shares worth more than $7.8 billion.
In its Q3 2023 investor letter, Jackson Peak Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”
You can also take a peek at Top 20 Most Unfriendly States in the US and 13 Most Profitable Renewable Energy Stocks.
