5 Best Long-Term Stocks to Buy Now

4. KKR & Co. Inc. (NYSE:KKR)

Number of Hedge Fund Holders: 54

Share price as of August 8: $52.42

KKR & Co. Inc. (NYSE:KKR) is a real estate investment firm specializing in direct and fund of fund investments. The company focuses on acquisitions, leveraged buyouts, management buyouts, credit special situations, and growth equity, among much more.

A Buy rating was reiterated on KKR & Co. Inc. (NYSE:KKR) shares this July by Brian Bedell at Deutsche Bank. Bedell also placed a $66 price target on the stock.

In the second quarter, KKR & Co. Inc. (NYSE:KKR) had an EPS of $0.9, in line with estimates. The company’s $1.8 billion revenue was up 178.4% year over year. S&P Global Market Intelligence data shows that the company’s revenue will grow from $3.1 billion last year to $12.3 billion in 2026, representing a CAGR of 31.5%. Over the last five years, KKR & Co. Inc.’s (NYSE:KKR) annualized total return was 22.7%, significantly higher than the 10% return for the US market as a whole.

There were 54 hedge funds long KKR & Co. Inc. (NYSE:KKR) in the first quarter, and 55 hedge funds long the stock in the previous quarter. Their total stake values were $4.04 billion and $5.5 billion respectively.

Diamond Hill Capital, an investment management firm, mentioned KKR & Co. Inc. (NYSE:KKR) in its first quarter 2022 investor letter. Here’s what they said:

With KKR, investors seemed concerned about the elevated valuations and leverage in private markets, especially during times of equity market volatility. In addition, while KKR’s recent quarterly results were solid, the company’s assets under management (AUM) growth was modest, and earnings were partially driven by the one-time sale of Origis Energy. In our view, the current share price implies flat AUM growth going forward, which we believe is too pessimistic. We continue to believe KKR is well-positioned to benefit from institutional investors increasing allocations to private markets and concentrating capital with managers who have strong brands and performance.”