In this article, we will look at the 5 best stocks for long-term growth. If you want to explore similar stocks, you can go to 12 Best Stocks for Long-Term Growth.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 69
On October 4, Micron Technology, Inc. (NASDAQ:MU) announced that it plans to invest $100 billion over the next 20 years to construct a mega semiconductor fabrication plant, which will be the largest semiconductor fab in the United States. The first $20 billion is expected to be invested by the end of this decade. Micron Technology, Inc. (NASDAQ:MU) is one of the best long-term stocks to buy now with significant growth potential.
This September, Needham analyst Rajvindra Gill revised his price target on Micron Technology, Inc. (NASDAQ:MU) to $60 from $64 and reiterated a Buy rating on the shares. On September 30, BMO Capital analyst Ambrish Srivastava revised her price target on Micron Technology, Inc. (NASDAQ:MU) to $70 from $80 and maintained a buy-side Outperform rating on the shares.
At the close of Q2 2022, 69 hedge funds were bullish on Micron Technology, Inc. (NASDAQ:MU) and held stakes worth $2.16 billion in the company. As of June 30, Matrix Capital Management is the leading shareholder in Micron Technology, Inc. (NASDAQ:MU) and has stakes worth $221 million in the company.
Here is what Meridian Funds had to say about Micron Technology, Inc. (NASDAQ:MU) in its second-quarter 2022 investor letter:
“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”
4. Oracle Corporation (NASDAQ:ORCL)
Number of Hedge Fund Holders: 69
Oracle Corporation (NASDAQ:ORCL) has long-term growth potential due to its position in the enterprise software industry and is one of the best long-term stocks to buy now. The company’s relational database management system is used by companies like Netflix Inc. (NASDAQ:NFLX) and Microsoft Corporation (NASDAQ:MSFT) and as businesses adopt digital solutions, Oracle Corporation (NASDAQ:ORCL) is expected to capture further market share. As of October 6, Oracle Corporation (NASDAQ:ORCL) has a market cap of $176 billion.
On September 12, Oracle Corporation (NASDAQ:ORCL) reported earnings for the first quarter of fiscal 2023. The company’s revenue grew by 17.65% year over year and amounted to $11.45 billion. The company’s strong cloud revenue turned Wall Street analysts bullish on the stock. On September 13, JPMorgan analyst Mark Murphy raised his price target on Oracle Corporation (NASDAQ:ORCL) to $84 from $82 and reiterated an Overweight rating on the shares. The analyst noted that the company’s “resilient, sticky, and largely recurring revenue stream positions the company well to relatively outperform in a post-pandemic environment.”
At the end of Q2 2022, 69 hedge funds held stakes in Oracle Corporation (NASDAQ:ORCL). This is compared to 61 positions in the first quarter of 2022. As of June 30, First Eagle Investment Management owns over 25.9 million shares of Oracle Corporation (NASDAQ:ORCL) and is the most prominent investor in the company.
First Eagle Investments mentioned several stocks in its second-quarter 2022 investor letter, one of which was Oracle Corporation (NASDAQ:ORCL). Here is what the firm had to say:
“Oracle 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.”
3. QUALCOMM, Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
QUALCOMM, Incorporated (NASDAQ:QCOM) is a leading semiconductor company that has significant exposure to high-growth markets such as 5G, server chips, and processors. The stock is one of the best long-term stocks to buy now. QUALCOMM Incorporated (NASDAQ:QCOM) is currently trading at bargain levels. As of October 6, the stock has a trailing twelve-month PE ratio of 11.1 and is offering a forward dividend yield of 2.4%.
On September 26, JPMorgan analyst Samik Chatterjee reiterated his buy-side Overweight rating and $185 price target on QUALCOMM Incorporated (NASDAQ:QCOM). This September, Deutsche Bank analyst Ross Seymore maintained his Buy rating and $170 price target on QUALCOMM Incorporated (NASDAQ:QCOM).
At the end of Q2 2022, 71 hedge funds held stakes in QUALCOMM Incorporated (NASDAQ:QCOM). The total value of these stakes amounted to $2.80 billion. As of June 30, Alkeon Capital Management owns more than 4.2 million shares of QUALCOMM Incorporated (NASDAQ:QCOM) and is the top shareholder in the company.
2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is an innovator in cybersecurity solutions and is exploring strategic M&A options to further strengthen its portfolio. On September 20, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) announced its plans to acquire cybersecurity firm Reposify which operates an external attack surface management platform. The cybersecurity industry is expected to experience strong growth as businesses go digital and rely on companies like CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to ensure enterprise security. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the best long-term stocks to buy now.
On October 6, Evercore ISI analyst Peter Levine started coverage of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with a buy-side Outperform rating and a $250 price target. The analyst noted that the company has a “hyper-growth profile coupled with profitability,” and “best-in-class” cash flows. The analyst said that CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is well-positioned to be a long-term stock for investors that are looking to invest in the cybersecurity industry. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has free cash flows of $542.7 million.
At the end of Q2 2022, 77 hedge funds held stakes in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) worth $4.10 billion. Of those, Tiger Global Management LLC was the most prominent investor with stakes worth $1.10 billion.
Here is what Carillon Tower Advisers had to say about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its second-quarter 2022 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a security software platform for protecting information technology assets and cloud workloads, delivered strong earnings results, with solid recurring revenue, customer growth, and profitability. Some investors, however, hoped for bigger numbers on the annual recurring revenue metric. Additionally, CrowdStrike has shown a desire to continue to hire to fuel growth, and so the expected increase in future profitability will be held back somewhat in the near term. We remain positive on the company’s prospects, as current geopolitical tensions make cyber security mission-critical.”
1. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) has long-term growth potential and is one of the best long-term stocks to buy now. Some of the company’s high-end clients include Amazon.com, Inc. (NASDAQ:AMZN), Walmart Inc. (NYSE:WMT), and Spotify Technologies (NYSE:SPOT). The company is reportedly targeting a revenue of $50 billion and growing its operating margins by 25% by the end of fiscal 2026. Salesforce, Inc. (NYSE:CRM) is a leader and innovator in CRM software and is expected to capture further market share as businesses go digital and integrate CRM solutions to become more efficient. As of October 6, Salesforce, Inc. (NYSE:CRM) is worth $155 billion. On September 21, insurance software developer Zywave announced a collaboration with Salesforce, Inc. (NYSE:CRM) to use CRM solutions for insurance agency sales and client services to enhance customer experience.
Wall Street is bullish on Salesforce, Inc. (NYSE:CRM). On September 22, Jefferies analyst Brent Thill maintained his Buy rating and $250 price target on Salesforce, Inc. (NYSE:CRM). This September, JPMorgan analyst Mark Murphy reiterated a buy-side Overweight rating and his $245 price target on Salesforce, Inc. (NYSE:CRM).
At the end of the second quarter of 2022, 116 hedge funds held stakes in Salesforce, Inc. (NYSE:CRM). This is compared to 114 hedge funds in the preceding quarter. As of June 30, Fisher Asset Management is the largest shareholder in the company and has stakes worth $2.58 billion.
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