This article presents an overview of the 5 Best Least Shorted Stocks to Buy Now. For a detailed overview of such stocks, read our article, 15 Best Least Shorted Stocks to Buy Now.
5. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 102
BofA recently published its Growth 10 list for February. The list includes stocks with strong EPS growth and Buy ratings. Eli Lilly And Co (NYSE:LLY) is part of the list.
A total of 102 hedge funds tracked by Insider Monkey had stakes in Eli Lilly And Co (NYSE:LLY). The most notable hedge fund stakeholder of Eli Lilly And Co (NYSE:LLY) during this period was Ken Fisher’s Fisher Asset Management which owns a $2.4 billion stake in Eli Lilly And Co (NYSE:LLY).
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:
“Stock selection was also positive in the sub-industry owing to strong gains from therapeutics-focused pharmaceutical giant Eli Lilly and Company (NYSE:LLY). Lilly’s stock continued to outperform driven by strong sales of blockbuster diabetes medicine Mounjaro and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises, particularly after Novo Nordisk released its SELECT trial results showing a 20% relative risk reduction in overweight patients with cardiovascular disease and no prior history of diabetes.
Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to strong third quarter sales of blockbuster diabetes medicine Mounjaro and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.
We own Eli Lilly and Company, which we believe will remain a leader in the GLP-1 medicine class with Mounjaro, Zepbound, and the company’s deep pipeline of next generation GLP-1 medicines.”
4. JPMorgan Chase & Co (NYSE:JPM)
Number of Hedge Fund Investors: 109
With a short interest of just 0.65% as a percentage of float, JPMorgan Chase & Co (NYSE:JPM) is one of the least shorted stocks to buy according to hedge funds. A total of 109 hedge funds tracked by Insider Monkey had JPMorgan Chase & Co (NYSE:JPM) shares in their portfolios heading into the last quarter of 2023.
The biggest stakeholder of JPMorgan Chase & Co (NYSE:JPM) was Ken Fisher’s Fisher Asset Management which owns a $1.7 billion stake in JPMorgan Chase & Co (NYSE:JPM).
Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:
“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”
3. Berkshire Hathaway Inc Class B (NYSE:BRK.B)
Number of Hedge Fund Investors: 116
It would take a lot of guts (and a bit of craziness) to short Warren Buffett-headed conglomerate Berkshire Hathaway Inc Class B (NYSE:BRK.B) shares since the company has strong fundamentals and a well-diversified business model. Over the past one year the stock has gained about 26%.
A total of 116 hedge funds tracked by Insider Monkey had stakes in Berkshire Hathaway Inc Class B (NYSE:BRK.B) as of the end of the third quarter of 2023.
2. Mastercard Inc (NYSE:MA)
Number of Hedge Fund Investors: 140
Mastercard Inc (NYSE:MA) is trading in the green after posting strong fourth quarter results. Adjusted EPS of Mastercard Inc (NYSE:MA) during the fourth quarter came in at $3.18, beating estimates by $0.10. Revenue in the quarter jumped 13% year over year to $6.5 billion, surpassing estimates by $20 million.
BofA research shows Mastercard Inc (NYSE:MA) has just 0.51% of short interest as a percentage of float, which makes it one of the best least shorted stocks to buy in 2024.
Ensemble Capital Management stated the following regarding Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter:
“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.
Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.
Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”
1. Alphabet Inc C (NASDAQ:GOOG)
Number of Hedge Fund Investors: 163
Despite concerns regarding Alphabet Inc C’s (NASDAQ:GOOG) search business amid the AI wave and rising competition, Alphabet Inc C (NASDAQ:GOOG) remains one of the least-shorted stocks with a highly positive hedge fund sentiment. The stock recently stumbled even after Alphabet Inc C (NASDAQ:GOOG) posted strong Q4 results which shows its ad revenue jump by 11%. Many analysts believe Alphabet Inc C (NASDAQ:GOOG) shares will rebound. Alphabet Inc C’s (NASDAQ:GOOG) revenue in the last quarter of 2023 jumped 13.5% year over year to $86.31 billion, beating estimates by $1.04 billion.
Of the 910 hedge funds tracked by Insider Monkey, 221 hedge funds had stakes in Alphabet Inc C (NASDAQ:GOOG).
The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”
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