In this article, we discuss the 12 best kid-friendly stocks to buy now. Parents have long wondered about a good way of teaching money management to their children. Getting kids interested in the stock market and then investing in different firms might be the perfect way to do that. For children, it is perhaps best to get started with big brands that are household names. Some of these, like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), are likely to be safe investments for kids as they start learning about the market. This is also an excellent time to buy these stocks as they are on sale and are likely to deliver positive returns over the long-term.
Kids usually pick up financial habits from their parents, and these stocks are some of the best investments for adults as well. Children can learn about budgeting, saving, and investing as they experiment with stocks. Investing takes a good amount of sacrifice and patience as well, both traits that are critical for the development of kids. One of the best possible gifts that a parent can give their child is money management lessons and investing in the stock market is a fun way of delivering such a gift.
Our Methodology
The companies that make products for children were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Pixabay/Public Domain
Best Kid-Friendly Stocks to Buy Now
12. Funko, Inc. (NASDAQ:FNKO)
Number of Hedge Fund Holders: 18
Funko, Inc. (NASDAQ:FNKO) is a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. It is one of the best kid-friendly stocks to invest in 2022. On September 13, Funko stated that it will open its first co-branded retail experience, a pop culture lifestyle brand, in partnership with a famous rapper Snoop Dogg in early 2023. Tha Dogg House will sit next to Snoop Dog’s Clothing, California.
On October 13, Jefferies analyst Andrew Uerkwitz took over coverage of Funko, Inc. (NASDAQ:FNKO) stock with a Buy rating and $30 price target, noting that the company’s Interactive Entertainment Team took over lead coverage of Toys & Entertainment Products coverage.
At the end of the second quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $196.8 million in Funko, Inc. (NASDAQ:FNKO), compared to 20 in the preceding quarter worth $161 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Funko, Inc. (NASDAQ:FNKO) is one of the best kid-friendly stocks to buy now according to elite investors.
11. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 43
The Hershey Company (NYSE:HSY) engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It is one of the top kid-friendly stocks to invest in 2022. On September 9, The Hershey Company stated that it will spend $90 million to open two new production lines in a Mexican plant in the state of Nuevo Leon. This will increase the output of the company by 25% and will create 300 new jobs.
On October 20, Deutsche Bank analyst Steve Powers maintained a Hold rating on The Hershey Company (NYSE:HSY) stock and raised the price target to $230 from $227, noting that the company expects another set of strong results in Q3.
At the end of the second quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in The Hershey Company (NYSE:HSY), compared to 40 in the previous quarter worth $1.4 billion.
10. Electronic Arts Inc. (NASDAQ:EA)
Number of Hedge Fund Holders: 46
Electronic Arts Inc. (NASDAQ:EA) develops, markets, publishes and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It is one of the premier kid-friendly stocks to invest in 2022. On October 31, Electronic Arts disclosed that it has made a partnership with Marvel, an American entertainment company, to build at least three new action-adventure games based on Marvel’s heroes for personal computers and consoles. The first game will be produced on Iron Man, a Marvel character.
On November 2, Wedbush analyst Michael Pachter maintained an Outperform rating on Electronic Arts Inc. (NASDAQ:EA) stock and lowered the price target to $164 from $170, noting that the company delivered bookings below Street estimates, but with EPS beating estimates.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Electronic Arts Inc. (NASDAQ:EA) with 1.5 million shares worth more than $182.6 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Electronic Arts Inc. (NASDAQ:EA) was one of them. Here is what the fund said:
“Electronic Arts Inc. (NASDAQ:EA) is also developing as we would expect. The business enjoyed strong engagement last year with players of EA games spending 20% more time than even during 2020, helped by the delayed sales of the PS5 console. A potentially important development is the ongoing negotiation between EA and FIFA regarding the licensing of the FIFA brand for the EA football game. Strongly worded public statements have been slung from both parties as part of the negotiation process, but this could certainly be an opportunity for EA.”
9. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 50
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants around the world. It is one of the elite kid-friendly stocks to invest in 2022. On November 1, McDonald’s revealed that it has launched its new World of Wakanda Happy Meal inspired by Marvel Studios’ Black Panther: Wakanda Forever, which will be released on November 11 in theaters.
On October 28, RBC Capital analyst Christopher Carril maintained an Outperform rating on McDonald’s Corporation (NYSE:MCD) stock and raised the price target to $295 from $275, highlighting that the company’s Q3 earnings beat the expectations.
At the end of the second quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in McDonald’s Corporation (NYSE:MCD), compared to 58 in the previous quarter worth $2.7 billion.
8. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 60
The Coca-Cola Company (NYSE:KO) is a beverage company, that manufactures, markets, and sells various non-alcoholic beverages worldwide. It is one of the major kid-friendly stocks to invest in 2022. On October 31, Thor Equities disclosed that it has acquired a former Coca-Cola bottling plant in Madrid for its planned data center campus. On October 18, Engine No. 1, a sustainability-focused investment firm, held talks with Coca-Cola on the subject of recycling bottles and cans.
On October 26, UBS analyst Peter Grom maintained a Buy rating on The Coca-Cola Company (NYSE:KO) stock and raised the price target to $68 from $63, highlighting that company’s Q3 earnings were impressive as its organic growth more than offset incremental currency headwinds.
At the end of the second quarter of 2022, 60 hedge funds in the database of Insider Monkey held stakes worth $28 billion in The Coca-Cola Company (NYSE:KO), compared to 64 in the preceding quarter worth $29 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Coca-Cola Company (NYSE:KO) was one of them. Here is what the fund said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (The Coca-Cola Company (NYSE:KO)). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
7. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 65
CVS Health Corporation (NYSE:CVS) provides health services in the United States. On November 1, Walgreens Boots, Walmart and CVS health revealed that they have reached a tentative agreement to pay more than $12 billion for the sale of opioid painkillers to states and local governments. CVS will pay $4.9 billion, Walgreens minimum $4 billion and Walmart will pay $3 billion.
On October 20, BofA analyst Michael Cherny maintained a Buy rating on CVS Health Corporation (NYSE:CVS) stock and lowered the price target to $118 from $122, noting that the company expects Q3 results to be generally steady with well-understood near-term tailwinds and headwinds.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in CVS Health Corporation (NYSE:CVS) with 3.4 million shares worth more than $312.7 million.
In its Q3 2022 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:
“CVS Health Corporation (NYSE:CVS) is a leader in the provision of healthcare services in the USA. It has three main businesses: an enormous network of pharmacies, a health insurance company, and “prescription benefit management”, which is a kind of intermediary between insurance companies and pharmacies. This is the result of large acquisitions over the past 15 years – most notably of Caremark (2007) and Aetna (2018). The markets had deemed its acquisition of health insurer Aetna too expensive (and we agree), so CVS stock then fell into disfavour for a few years.
We took advantage of this in the summer of 2020 and brought the stock into our portfolio at a time when its price was pressed down still further by the coronavirus pandemic. CVS is a giant. It has revenues of USD 300 billion, making it one of the largest companies in the world. It is a relatively stable and highly profitable company with strong free cash flow. Over the past few years, CVS has focused primarily on reducing debt.
This is already much lower than it had been after the Aetna acquisition, and most of the cash is now likely to go to shareholders through share buybacks or be used for smaller acquisitions to grow the company further. CVS trades at about 11 times annual earnings, which is a very appealing valuation given the expected future growth in profitability and overall modest cyclicality in its business.”
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 109
The Walt Disney Company (NYSE:DIS) together with its subsidiaries, operates as an entertainment company worldwide. On November 1, Walt Disney was testing building stronger connections between its streaming and product business, by setting up a pilot program to offer exclusive toy selections to Disney and subscribers.
On October 26, KeyBanc analyst Brandon Nispel maintained an Overweight rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $143 from $154, noting that the company’s traditional Media business is exposed to negative macro trends, but focus on sports positions it favorably.
At the end of the second quarter of 2022, 109 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in The Walt Disney Company (NYSE:DIS), compared to 113 in the previous quarter worth $5.2 billion.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), The Walt Disney Company (NYSE:DIS) is one of the best kid-friendly stocks to buy now according to elite investors.
In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The Walt Disney Company (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade before the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
5. 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 best kid-friendly stocks to invest in 2022. On October 27, after Apple increased the ad space in its App Store in pursuit of bigger revenues, it also backfired as the users argued that the ad slots were purchased by gambling services.
On October 28, Wedbush analyst Daniel Ives maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock and lowered the price target to $200 from $220, noting that the company delivered a mixed September quarter.
At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $182 billion.
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 the production of apple products, however, the manufacturing facilities have resumed activity.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms such as Google Services, Google Cloud etc. It is one of the top kid-friendly stocks to invest in 2022. On October 27, Google, a subsidiary of Alphabet, disclosed that it has deleted over a dozen apps from its Google Play Store. It is said that these apps were secretly hiding dangerous malware. On November 1, Google said that it would buy a solar power supply deal with SB Energy Global’s Texas Facilities.
On October 26, Oppenheimer analyst Jason Helfstein maintained an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $135 from $155, noting that the company’s lower 2023 estimates on the weaker first half of the year and slower headcount growth.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 3.2 million shares worth more than $6.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It is one of the elite kid-friendly stocks to invest in 2022. On October 31, Facebook, a subsidiary of Meta Platforms, announced that it is opening up access to all creators globally to provide more options to help creators build their presence. The first Professional Mode by Facebook was launched in December 2021.
On October 27, RBC Capital analyst Brad Erickson maintained an Outperform rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $150 from $190, noting that the company’s significantly higher expense outlook far outweighed the better-than-feared top-line report and guide.
At the end of the second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 in the preceding quarter worth $19.3 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. It is one of the major kid-friendly stocks to invest in 2022. On November 1, Amazon revealed that it is introducing ad-free content and new features to enhance the listening experience for Prime members with Amazon Music. The new features will make it easier for customers to find new music, shows and podcasts.
On October 28, DA Davidson analyst Tom Forte maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $114 from $151, highlighting that the company post Q3 results.
At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 in the preceding quarter worth $48 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services, provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from the overcapacity of resources coming out of COVID. We expect Amazon to grow its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. It is one of the premier kid-friendly stocks to invest in 2022. On October 29, Microsoft said that it has released an out-of-band update of OneDrive and Onedrive for Business to resolve the known issue of crashing OneDrive after installing Windows 10 updates. This issue occurs when unlinking and signing out OneDrive accounts or sites and folders from Microsoft Teams and Sharepoint.
On November 2, Macquarie analyst Sarah Hindlian-Bowler initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a Neutral rating and $234 price target, highlighting the company’s slowness in the macro environment, slower PC sales, high energy costs and a soft consumer due to near term headwinds.
At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes worth $56 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 259 in the previous quarter worth $65.6 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)
You can also take a peek at 12 Best Blue Chip Stocks To Buy Today and 10 Best Auto Stocks To Buy Now.
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Disclosure. None. 12 Best Kid-Friendly Stocks to Buy Now is originally published on Insider Monkey.
