10 Best Motley Fool Stocks To Buy Now

In this article, we discuss the 10 best Motley Fool stocks to buy now.

Motley Fool Asset Management (MFAM) is an asset management firm, founded in 2009 by financial services company, The Motley Fool. Currently, Bryan Hinmon is serving as the Chief Investment Officer of the firm. He is also working as the portfolio manager for the MFAM’s Global Opportunities Fund and Mid Cap Growth Fund since 2014.

Bryan Hinmon is a graduate of Stetson University with a bachelor’s degree in finance. Before joining Motley Fool Asset Management, Hinmon worked as a portfolio manager at Bulwark Capital Management. He is also a member of the Boston Security Analysts Society. Motley Fool Asset Management invests in stocks with long-term growth potential. Along with this, the firm also focuses on management culture, business economics, and the overall performance of the companies in which it invests.

Recently, MFAM has announced to transform its actively managed Global Opportunities Fund and Mid Cap Growth Fund into ETFs by the end of this year. This shift to ETFs is mainly to make investment options clearer for investors, providing them with long-term investment opportunities. According to Hinmon, this new step will offer new investment strategies along with active and passive managed solutions.

As of Q2, MFAM’s portfolio value stands at over $1.5 billion, presenting a 1.09% growth from the previous quarter. The fund invests in large-cap stocks, focusing heavily on technology, finance, healthcare, services, and industrial goods. Some of the notable holdings of MFAM in the second quarter include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Mastercard Incorporated (NYSE:MA).

Our Methodology: 

Let’s analyze our list of the 10 best Motley Fool stocks to buy now. We took into account Motley Fool’s 13F portfolio as of Q2.

Best Motley Fool Stocks To Buy Now

10. Atlassian Corporation Plc (NASDAQ:TEAM)

Motley Fool Asset Management’s Stake Value: $32,364,000

Percent of Motley Fool Asset Management’s 13F Portfolio: 2.13%

Number of Hedge Fund Holders: 64

Atlassian Corporation Plc is an Australian software company, providing solutions for software developers. It is one of the latest acquisitions of Motley Fool as the fund started building its position in the company with 126,000 shares in Q2, valued at $32.3 million. The company represents 2.13% of the hedge fund’s 13F portfolio, which makes it one of the best Motley Fool stocks to buy now.

At the end of Q2, 64 hedge funds tracked by Insider Monkey reported owning stakes in Atlassian Corporation Plc, compared with 67 in the previous quarter. The total worth of these stakes is over $4.17 billion.

Atlassian Corporation Plc reported its fiscal Q1 2022 results on October 28. The company posted an EPS of $0.46, beating the estimates by $0.06. Recently, BMO Capital raised its price target on Atlassian Corporation Plc to $515, while keeping a Market Perform rating on the shares, after the company’s Q1 earnings beat. In the past year, the stock gained 144.2%.

Tao Value mentioned Atlassian Corporation Plc in its Q3 2021 investor letter. Here is what the firm has to say:

Atlassian (TEAM) delivered a “ripper”(quoting management from earnings call) quarter, adding a record 23K new customers last quarter, which is more than the total new customers of full year 2020. The cloud revenue also shows growth acceleration. This is surprisingly impressive, give that TEAM is believed to pull future demand forward to last quarter (i.e. the market expects de-acceleration after such effect) by ending their on-premise offerings in February 2021. As a result, the stock price jumped up 20+% on the earnings day. TEAM has increased 20-fold from our initial purchase and is now growing into our 3rd largest position.”

9. Everbridge, Inc. (NASDAQ:EVBG)

Motley Fool Asset Management’s Stake Value: $32,429,000

Percent of Motley Fool Asset Management’s 13F Portfolio: 2.14%

Number of Hedge Fund Holders: 26

On October 20, Barclays initiated its coverage on Everbridge, Inc. (NASDAQ:EVBG) with an Overweight rating and a $185 price target. The firm presented positive prospects for the company as businesses around the world start to reopen after the pandemic. Everbridge, Inc. is a software company that provides information about personal safety and business continuity.

At the end of Q2, 26 hedge funds tracked by Insider Monkey have stakes in Everbridge, Inc., down from 49 in the previous quarter. The total value of these stakes is over $12 billion, up from $10.8 billion in Q1 2021.

Motley Fool’s fund owns 238,306 shares in the company as of Q2, valued at over $32.4 million. The company accounts for 2.14% of the hedge fund’s 13F portfolio.

Baron Discovery Fund mentioned Everbridge, Inc. in its Q1 2021 investor letter. Here is what the firm has to say:

“Everbridge, Inc. provides a cloud-based software solution to companies for critical event management (“CEM”) as well as general population alerts for public authorities. Shares declined during the first quarter as part of the broader market rotation from high-valuation software stocks coupled with continued pandemic-related pressure on Everbridge’s organic growth rates. We retain conviction given the company’s significant lead over its competition and the early stage of CEM adoption, with just 2% of Everbridge’s 5,000-plus population alert customers having adopted CEM thus far.”

8. PayPal Holdings, Inc. (NASDAQ:PYPL)

Motley Fool Asset Management’s Stake Value: $33,913,000

Percent of Motley Fool Asset Management’s 13F Portfolio: 2.23%

Number of Hedge Fund Holders: 143

As of Q2, 143 hedge funds tracked by Insider Monkey reported owning stakes in PayPal Holdings, Inc. (NASDAQ:PYPL), the same as in the previous quarter. The value of these stakes is over $16.3 billion.

As of Q2, Motley Fool holds 116,347 shares in PayPal Holdings, Inc., valued at roughly $34 million. The company constitutes 2.23% of the hedge fund’s 13F portfolio. The hedge fund increased its stake in PayPal Holdings, Inc. by 2% in Q2.

In Q3, PayPal Holdings, Inc. posted an EPS of $1.11, beating the analysts’ estimates of $1.08.

Recently, Baird raised its price target on PayPal Holdings, Inc. to $325, with an Outperform rating on the shares.

Alger mentioned PayPal Holdings, Inc. in its Q3 2021 investor letter. Here is what the firm has to say:

PayPal Holdings, Inc. was among top detractors from performance. PayPal is a pure play on e-commerce and electronic payments which is driving the company’s high unit volume growth. As a digital payments company, it is helping to facilitate the shift to a cashless society. The coronavirus pandemic has significantly accelerated the adoption of e-commerce and the utilization of digital payments platforms. In our view, PayPal is currently positioned to benefit the strength in e-commerce trends, including increasing net new active users and increased engagement per user. PayPal also has launched a service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account. PayPal’s vision is to become a Super App that integrates payments, commerce and financial services, as well as crypto capabilities. After outperforming earlier in the year, the performance of PayPal shares weakened in the third quarter with the company  facing potentially higher transaction expenses and credit losses.  The higher transaction expenses are driven by a shift by  consumers to the higher cost travel and entertainment  categories which skew toward less profitable credit transactions.”

7. Mastercard Incorporated (NYSE:MA)

Motley Fool Asset Management’s Stake Value: $40,532,000

Percent of Motley Fool Asset Management’s 13F Portfolio: 2.67%

Number of Hedge Fund Holders: 156

Mastercard Incorporated is an American financial services company. In Q2, Motley Fool increased its stake in Mastercard Incorporated by 291% and now holds 111,081 shares in the company, valued at $40.5 million. The company accounts for 2.67% of the hedge fund’s 13F portfolio.

In March 2020, Mastercard Incorporated hit a low of $211.4 per share due to the pandemic, but the stock gained 19% in 2020 due to the growth in contactless payments. In Q3, the company posted an EPS of $2.37, beating the estimates by $0.18. Recently, Raymond James set a $430 price target on Mastercard Incorporated with an Outperform rating on the shares.

As of Q2, 156 hedge funds tracked by Insider Monkey were bullish on Mastercard Incorporated, up from 151 in the previous quarter. The total value of these stakes is over $17 billion. In Q3, Codex Capital is the company’s leading shareholder, owning shares worth $8 billion.

Polen Capital mentioned Mastercard Incorporated in Q3 2021 investor letter. Here is what the firm has to say:

Mastercard faced pressure as some believe these “old payment infrastructure” businesses will be disrupted by newer fintech companies using blockchain, buy now, pay later (BNPL), or other innovations to provide better/cheaper payment services. However, we believe that some of these technologies have meaningful limitations which could benefit existing payment networks. For example, BNPL transactions are often funded with cards and turn a one-time transaction into many smaller ones with more transaction fees for Mastercard. Just like with regulation, we continually monitor for competition and technological disruption. As of now, we do not see a significant risk in the foreseeable future to this company.”

6. Microsoft Corporation (NASDAQ:MSFT)

Motley Fool Asset Management’s Stake Value: $49,303,000

Percent of Motley Fool Asset Management’s 13F Portfolio: 3.25%

Number of Hedge Fund Holders: 238

In Q2, Motley Fool increased its stakes in Microsoft Corporation by 7% and now holds 181,997 shares in the company, valued at over $49.3 million. The company represents 3.25% of the hedge fund’s 13F portfolio, making it one of the best Motley Fool stocks to buy now. Recently, Evercore ISI lifted its price target on Microsoft Corporation to $370, with an Outperform rating on the shares after the company posted a Q1 earnings beat.

At the end of Q2, 238 hedge funds tracked by Insider Monkey were bullish on Microsoft Corporation, compared with 251 in the previous quarter. The total value of these stakes is $62.4 billion. Ivy Lane Capital is the company’s leading shareholder, owning shares worth $23.3 billion.

Alger mentioned Microsoft Corporation in its Q3 2021 investor letter. Here is what the firm has to say:

Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”

5. Axon Enterprise, Inc. (NASDAQ:AXON)

Motley Fool Asset Management’s Stake Value: $51,461,000
Percent of Motley Fool Asset Management’s 13F Portfolio: 3.39%
Number of Hedge Fund Holders: 24

Axon Enterprise, Inc. (NASDAQ:AXON) is an American company that specializes in developing technology and weapons for the military, civilians, and law enforcement.

Motley Fool held 291,068 shares in the company in Q2, valued at over $51.4 million. Axon Enterprise, Inc. represents 3.39% of the hedge fund’s 13F portfolio.

At the end of Q2, 24 hedge funds tracked by Insider Monkey held stakes in Axon Enterprise, Inc., compared with 31 in the previous quarter. The total value of these stakes is over $513.5 million.

4. Watsco, Inc. (NYSE:WSO)

Motley Fool Asset Management’s Stake Value: $52,533,000
Percent of Motley Fool Asset Management’s 13F Portfolio: 3.46%
Number of Hedge Fund Holders: 70

As of Q2, the smart money also seemed to take interest in Watsco, Inc. (NYSE:WSO), as 70 hedge funds tracked by Insider Monkey were bullish on the company, up from 66 in the previous quarter. The total worth of these stakes is over $5.5 billion. Watsco, Inc. is the largest distributor of air conditioning and refrigeration products.

Motley Fool holds 183,272 shares in Watsco, Inc. as of Q2, valued at over $52.5 million. The company accounts for 3.46% of the hedge fund’s 13F portfolio. Watsco, Inc., one of the best Motley Fool stocks to buy now, reported its Q3 results on October 20 and posted a GAAP EPS of $3.62, beating the estimates by $0.06.

3. Apple Inc. (NASDAQ:AAPL)

Motley Fool Asset Management’s Stake Value: $55,115,000
Percent of Motley Fool Asset Management’s 13F Portfolio: 3.64%
Number of Hedge Fund Holders: 138

In Q2, Motley Fool increased its stake in Apple Inc. by 6% and now holds 402,416 shares in the company, valued at over $55 million. The company represents 3.64% of the hedge fund’s 13F portfolio.

Apple Inc., a multinational tech company, sold over 14.7 million iPads during the third quarter of 2021, with its iPad revenue reaching $8.3 billion. The company now represents 34.6% of the worldwide tablet market, up from 30% in the prior-year quarter. Recently, Canaccord raised its price target on Apple Inc. to $185, with a Buy rating on the shares, appreciating the strong demands of the company’s products.

At the end of Q2, 138 hedge funds tracked by Insider Monkey reported owning stakes in Apple Inc., up from 127 in the previous quarter. The total worth of these stakes is over $145.5 billion.

ClearBridge Investments mentioned Apple Inc. in its first-quarter 2021 investor letter. Here is what the firm has to say:

“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”

2. Alphabet Inc. (NASDAQ:GOOG)

Motley Fool Asset Management’s Stake Value: $63,964,000
Percent of Motley Fool Asset Management’s 13F Portfolio: 4.22%
Number of Hedge Fund Holders: 155

Alphabet Inc. reported its Q3 2021 results on October 26. The company posted a GAAP EPS of $27.99, beating the estimates by $4.67. Alphabet Inc. also saw a 41% year-over-year growth in revenue at $65.1 billion.

Of the 873 hedge funds tracked by Insider Monkey, 155 hedge funds reported owning stakes in Alphabet Inc. in Q2, compared with 159 in the previous quarter. The total value of these stakes is over $33.7 billion.

Motley Fool holds 25,521 shares in Alphabet Inc. in Q2, worth roughly $64 million. The company represents 4.22% of the hedge fund’s 13F portfolio. Recently, Jefferies lifted its price target on Alphabet Inc. to $3,500, while keeping a Buy rating on the shares.

Alger mentioned Alphabet Inc. in its Q3 2021 investor letter. Here is what the firm has to say:

Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing it and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Motley Fool Asset Management’s Stake Value: $82,285,000
Percent of Motley Fool Asset Management’s 13F Portfolio: 5.43%
Number of Hedge Fund Holders: 271

Amazon.com, Inc. tops our list of the best Motley Fool stocks to buy now. In Q2, the company presented a positive hedge fund sentiment, as 271 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc., up from 243 in the previous quarter. The total value of these stakes is over $60.4 billion.

In Q2, Motley Fool increased its position in Amazon.com, Inc. by 6% and now holds 23,919 shares in the company, valued at over $82.2 million. The company represents 5.43% of the hedge fund’s 13F portfolio.

In Q3 2021, Amazon.com, Inc. reported revenue of $110.8 billion, up 15.3% from the prior-year quarter. In October, Truist raised its price target on Amazon.com, Inc. to $4,000 with a Buy rating on the shares, highlighting the company’s strong advertising execution.

Polen Capital mentioned Amazon.com, Inc. in its Q3 2021 investor letter. Here is what the firm has to say:

Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”

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This article is originally published at Insider Monkey.