5 Best FAANG Stocks To Buy Now

In this article, we will be taking a look at the 5 best FAANG stocks to buy now. To read our detailed analysis of these stocks and the technology sector, you can go directly to see the 11 Best FAANG Stocks To Buy Now.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) is one of the Big Tech companies, most notably known for its production of the iPhone and the MacBook. The company is based in Cupertino, California.

An Overweight rating was reiterated on Apple Inc. (NASDAQ:AAPL) shares on October 3, by analyst Samik Chatterjee at JPMorgan.

Apple Inc.’s (NASDAQ:AAPL) revenue has grown by 11.63% year-over-year, and its EPS is expected to rise by 11.61% over the next three to five years. The company’s forward free cash flow per share growth rate stands at 14.7%.

Our hedge fund data shows 128 funds long Apple Inc. (NASDAQ:AAPL) in the second quarter. Their total stake value was $1.4 billion.

Distillate Capital Partners LLC, an investment management firm, mentioned Apple Inc. (NASDAQ:AAPL) in its second quarter 2022 investor letter. Here’s what the firm said:

“Apple was largest new purchase in the quarter, at a 2% weight. Apple underperformed the overall market last quarter,and given very minimal debt, this price weakness translated into a commensurate fall in its enterprise value. For stocks with higher debt levels, it takes a disproportionately bigger market cap drop to achieve the same valuation improvementand this is a key reason we avoid highly leveraged names where significant price weakness can be experienced during a revaluation process. Alongside this decline in EV for Apple, its estimated free cash flows have risen steadily throughout the year. This contrast between a falling enterprise value and rising free cash flow, which is highlighted in Figure 12, made the stock sufficiently better valued such that it entered the portfolio. While Apple’s valuation is now attractive enough to warrant inclusion in the portfolio, it still ranks in the bottom quartile of the portfolio’s holdings and so the stock’s initiating weight is capped at a 2%. This contrasts significantly with Apple’s near-7% position in the S&P 500 benchmark,and reflects both our preference to avoid too much concentration risk as well our goal of ensuring that the overall portfolio valuation is as attractive as possible while balancing characteristics of stability and low indebtedness.”