In this article, we discuss 5 best inflation stocks to buy according to hedge funds. If you want to read about some more inflation stocks, go directly to 10 Best Inflation Stocks to Buy According to Hedge Funds.
5. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 69
Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide. It is one of the best inflation stocks to invest in. Oracle Corporation (NYSE:ORCL) recently revealed that it was working closely with Teléfonos de México on a new project. The project involves the expansion of Oracle Cloud Infrastructure service to the customers across Mexico. Customers will be able to use OCI services to advance their applications and also in the closing of data centers.
On September 14, Berenberg analyst Nay Soe Naing kept a Hold rating on Oracle Corporation (NYSE:ORCL) stock with a $72 price target, saying that the mid-term opportunities and risks seemed balanced for the firm.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm First Eagle Investment Management is a leading shareholder in Oracle Corporation (NYSE:ORCL), with 25.9 million shares worth more than $1.8 billion.
In its Q2 2022 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Oracle Corporation (NYSE:ORCL) was one of them. Here is what the fund said:
“Oracle Corporation (NYSE:ORCL) is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyze medical records and other healthcare data.
Oracle took on additional debt to finance this all-cash acquisition and as a result plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better- than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year.”
4. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 70
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It is one of the top inflation stocks to invest in. Pfizer Inc. (NYSE:PFE) and BioNTech recently announced that they were joining Disney in a collaboration to promote COVID-19 vaccinations. The firms also announced the creation of a comic book named Everyday Heroes for the purpose.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm AQR Capital Management is a leading shareholder in Pfizer Inc. (NYSE:PFE), with 10.6 million shares worth more than $553.9 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer Inc. (NYSE:PFE) vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.”
3. The Proctor and Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 71
The Proctor and Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide. It is one of the premier inflation stocks to invest in. On October 10, Goldman Sachs analyst Jason English maintained a Neutral rating on The Procter & Gamble Company (NYSE:PG) stock with a $143 price target, underlining that the rating reflected a vigilant outlook on the group as well as company specific concerns that reveal market share headwinds could persist.
At the end of the second quarter of 2022, 71 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in The Proctor and Gamble Company (NYSE:PG), compared to 72 in the preceding quarter worth $6.1 billion.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. It is one of the major inflation stocks to invest in. On October 07, Citi analyst Joanne Wuensch kept a Buy rating on Johnson & Johnson (NYSE:JNJ) stock and lowered the price target to $198 from $201, stating that the company’s Q2 results confirmed the large scale undercurrents, which incorporate the sizable swing in currency, continuous burden of expansion, and slacking elective strategy recovery.
Among the hedge funds being tracked by Insider Monkey, Florida-based firm GQG Partners is a leading shareholder in Johnson & Johnson (NYSE:JNJ), with 6.6 million shares worth more than $1.2 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. It is one of the elite inflation stocks to invest in. Apple Inc. (NASDAQ:AAPL) has created a car crashing detection feature in its iPhone 14 pro. The Wall Street Journal reports that the iPhone’s new feature was triggered and automatically dialed 911 after the phone’s owner rode a roller coaster at an amusement park outside Cincinnati.
On September 29, UBS analyst David Vogt kept a Buy rating and a $185 price target on Apple Inc. (NASDAQ:AAPL) stock, stating that in spite of the industry softness, the wait times for the high-end iPhone models remain elevated.
At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 million in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $182 million.
In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc.(NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
You can also take a peek at 10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners and Top 10 Tech Stocks to Buy According to Billionaire Louis Bacon.
