5 Best Tech Stocks For Long Term Investment

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 140     

Apple Inc. (NASDAQ:AAPL) designs, manufactures and markets smartphones, personal computers, tablets, wearables, and accessories. Apple is one of the biggest companies in the world and has built a brand that billions of people around the world own and know about. The firm has been able to grow revenues even in a macro slowdown and has the confidence of legendary value investors like Warren Buffett. The large correction in the stock price due to recession fears has also made the risk/reward profile of the shares more balanced in the past few months, and as the market recovers, the shares seem primed for an upside.  The firm has a forward PE ratio of around 21x and a return on capital employed of around 100%. The shares can return more than 10% to investors annually over the long-term. The history of the firm in the stock market backs these predictions. 

On November 8, UBS analyst David Vogt maintained a Buy rating on Apple Inc. (NASDAQ:AAPL) stock and lowered the price target to $180 from $185, noting that due to COVID-related complications, delivery dates are seen extending beyond Black Friday, though the impact is still estimated to be in the low single digits.

At the end of the third quarter of 2022, 140 hedge funds in the database of Insider Monkey held stakes worth $144 billion in Apple Inc. (NASDAQ:AAPL), compared to 128 in the previous quarter worth $143 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.”