In this article, we will be taking a look at the 10 best tech stocks to buy now according to GuardCap Asset Management.
GuardCap Asset Management is a specialist investment company based in London and solely focused on managing concentrated, bottom-up, strategies for institutional investors. The investment manager is a wholly owned subsidiary of Toronto-based financial services firm, Guardian Capital Group Limited. GuardCap Asset Management had $13.1 billion in assets under management (AUM) and an additional $1.3 billion in assets under administration (AUA), as of December 31, 2021.
GuardCap Asset Management’s primary strategies are Global Equities and Global Emerging Market Equities. The strategies are long-only equity strategies, targeting long term absolute investment returns and investing primarily in shares and related instruments of shares, with typical portfolios holding 20-25 stock positions, seeking returns which exhibit lower volatility than their benchmark over the long-term. Its GuardCap Global Equity Fund Class: I (Acc) USD, which was launched in December 2014, has outperformed the benchmark over the 7-year period since its inception, generating an annualized return of 11.84%, compared to 8.43% for the benchmark.
With the Federal Reserve raising interest rates, there is a potential for a recession or economic slowdown which could continue to send stocks lower. Nevertheless, there could be opportunity for long term investors who buy quality companies.
Methodology
For our list, we picked the top 10 tech stocks from GuardCap Asset Management’s latest 13F holdings for Q2 2022. According to Insider Monkey’s hedge fund data for the second quarter, these stocks are also some of the most popular names among hedge funds. We then ranked the stocks based on the percentage of each company in GuardCap Asset Management’s 13 Portfolio.
For each company, we provided the fund’s stake value and percentage of 13F portfolio as of Q2 2022.
10 Best Tech Stocks to Buy According to GuardCap Asset Management
10. Verisk Analytics, Inc. (NASDAQ:VRSK)
GuardCap Asset Management’s Stake Value: $197,119,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 3.02%
Verisk Analytics, Inc. (NASDAQ:VRSK) is a leading data analytics provider based in New Jersey serving customers in insurance, energy and specialized markets, and financial services. Verisk Analytics, Inc. uses artificial intelligence, machine learning and other advanced technologies to provide analytics and insights to customers including the top 100 U.S. property/casualty insurers and nine of the top 10 global energy providers.
As of Q2, GuardCap Asset Management owned 1,138,823 shares of Verisk Analytics, Inc., making up 3.02% of the 13F portfolio of the investment manager. GuardCap Asset Management’s stake increased by 2% in Q2 2022, as compared to the previous quarter.
For Q2, Verisk Analytics, Inc. released the financial results where its revenue declined by 0.2% y-o-y to $746.3 million, while its net income increased by 28% y-o-y to $197.7 million.
The company also recorded an EPS of $1.53, beating the consensus by $0.12. Following the earnings release, Baird analyst Jeffrey Meuler raised the price target on Verisk Analytics to $220 from $215.
Like Booking Holdings Inc. (NASDAQ:BKNG), Alphabet Inc. (NASDAQ:GOOG), and CME Group Inc. (NASDAQ:CME), GuardCap Asset Management owned substantial shares in Verisk Analytics, Inc. according to the latest 13F filings.
9. Microsoft Corporation (NASDAQ:MSFT)
GuardCap Asset Management’s Stake Value: $325,922,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 5.00%
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
According to the most recent SEC filings, GuardCap Asset Management owns 1,269,018 shares in Microsoft Corporation, accounting for 5.0% of the investment firm’s 13F Portfolio. GuardCap Asset Management’s stake increased by 36% in Q2 2022, compared to the previous quarter.
In July, Microsoft Corporation reported its earnings for the quarter ended June 30, 2022. Its revenue increased by 12% y-o-y to $51.9 billion, while net income increased by 2% y-o-y to $16.7 billion. The company recorded an EPS of $2.23, missing consensus by $0.06.
While its stock has declined by over 23% this year, Microsoft Corporation still has strong earnings growth potential in the long term given its cloud and enterprise businesses.
8. Accenture Plc (NYSE:ACN)
GuardCap Asset Management’s Stake Value: $344,925,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 5.29%
Based in Dublin, Ireland, Accenture Plc (NYSE:ACN) is a global professional services company with leadership positions in providing digital, cloud and security. Accenture Plc employs more than 700,000 people and serves clients across more than 40 industries in more than 120 countries.
Accenture Plc shares make up a significant portion of GuardCap Asset Management’s 13F Portfolio with the ownership of 1,242,302 shares, making up for a 5.29% percentage in the portfolio. GuardCap Asset Management’s stake increased by 2% in Q2 2022, as compared to the previous quarter.
For the quarter ended May 31, 2022, Accenture Plc’s revenue increased by 22% y-o-y to $16.2 billion, while its net income increased by 16% y-o-y to $1.8 billion. EPS for the quarter was recorded at $2.79, missing the consensus by $0.05.
In August, Accenture Plc agreed to acquire the Netherlands, Belgium, and Bulgaria businesses of cloud computing company Sentia.
If the global economy doesn’t slow as much as expected, Accenture Plc shares could have upside.
7. Automatic Data Processing, Inc. (NASDAQ:ADP)
GuardCap Asset Management’s Stake Value: $385,210,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 5.91%
Automatic Data Processing, Inc. (NASDAQ:ADP), is a New Jersey-based global technology company providing comprehensive cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration. It serves nearly 1 million clients across 140 countries and territories.
According to the latest SEC data, GuardCap Asset Management owns 1,833,986 shares of Automatic Data Processing, Inc., making up 5.91% of the hedge fund’s 13F Portfolio. Its stake increased by 2% in Q2 2022, compared to the previous quarter.
Automatic Data Processing, Inc. released the financial results for its Q4 2022 quarter earlier this year in July. For the quarter, revenue increased by 10% y-o-y to $4.1 billion, while net earnings increased by 16% y-o-y to $625 million. The company also reported an EPS of $1.50, beating the consensus by $0.03.
Earlier this month in August, Barclays analyst Ramsey El-Assal raised the price target to $280 from $257, while Mizuho analyst Dan Dolev raised the price target to $257 from $250.
6. MarketAxess Holdings Inc. (NASDAQ:MKTX)
GuardCap Asset Management’s Stake Value: $502,179,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 7.70%
New York-based MarketAxess Holdings Inc. (NASDAQ:MKTX) operates a leading, institutional electronic trading platform focused on global fixed-income markets. Its network comprises over 1,800 firms, including the world’s leading asset managers and institutional broker-dealers. MarketAxess Holdings Inc. recorded total credit trading volume of $742 billion on its platforms in Q2 2022.
Since the beginning of 2022, GuardCap Asset Management has been bullish on the shares of MarketAxess Holdings Inc.. The fund’s stake has increased by nearly 62% in the first six months of 2022, bringing the ownership to 1,961,561 shares, making up 7.7% of GuardCap’s 13F portfolio.
MarketAxess Holdings Inc. reported the financial results for Q2 2022 in July. For the period, revenue increased by 3% y-o-y to $182 million, while it generated a net income of $67 million. The company reported an EPS of $1.78, beating the consensus by $0.08.
Deutsche Bank analyst Brian Bedell raised the price target to $292 from $286 earlier in August.
Much like MarketAxess Holdings Inc., GuardCap Asset Management also owned substantial shares in Booking Holdings Inc., Alphabet Inc., and CME Group Inc. in Q2 2022.
5. Mastercard Inc (NYSE:MA)
GuardCap Asset Management’s Stake Value: $521,974,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 8.01%
Mastercard Inc (NYSE:MA) is a global technology company focused on the payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks. Mastercard Inc reported 968 million consumer credit cards, 1.5 billion consumer debit and prepaid cards, and 111 million commercial credit and debit cards in issuance as of December 31, 2022.
In the second quarter, GuardCap Asset Management owned 1,654,540 shares of Mastercard Inc, making up 8.01% of the investment manger’s 13F portfolio. Its stake decreased by 2% in Q2 2022, compared to the previous quarter.
Mastercard Inc released its financial results for Q2 2022 earlier this year in July. Net revenue increased by 11% y-o-y to $5.5 billion, while net earnings increased by 10% y-o-y to $ 2.3 billion. The company also reported an EPS of $2.56, beating the consensus by $0.20.
Although shares of Mastercard Inc are down over 10% year to date, they could have upside if the economy doesn’t enter into a recession.
4. UnitedHealth Group Inc. (NYSE:UNH)
GuardCap Asset Management’s Stake Value: $545,086,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 8.36%
UnitedHealth Group Inc. (NYSE:UNH) is a healthcare technology company based in Minnesota providing health coverage, software, data and consultancy services. Its health insurance business utilizes technology and data capabilities to help coordinate patient care, improve affordability, analyze cost trends, manage pharmacy benefits, and create a simpler consumer experience.
GuardCap Asset Management’s 13F Portfolio is heavily weighted with UnitedHealth Group Inc. stock with ownership of 1,061,243 shares accounting for 8.36% of the 13F portfolio. GuardCap Asset Management’s stake went down by 29% in Q2 2022, compared to the previous quarter.
Earlier this year in July, UnitedHealth Group Inc. released the financial results for Q2 2022. Revenue increased by 13% y-o-y to $80.3 billion, while net income increased by 19% y-o-y to $5.2 billion. The company also reported an EPS of $5.57, beating the consensus by $0.36.
Following the earnings release, Mizuho analyst Ann Hynes raised the firm’s price target on its shares to $600 from $550 and maintains a ‘Buy’ rating.
3. Booking Holdings Inc. (NASDAQ:BKNG)
GuardCap Asset Management’s Stake Value: $552,273,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 8.47%
Based in Norwalk, Connecticut, Booking Holdings Inc., is a leading provider of online travel and related services with a presence in more than 220 countries and territories across the world. The company provides its services primarily through six online platforms: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. It boasts more than 28 million listings of hotels, homes, apartments, and other unique places to stay across its platforms.
Booking Holdings Inc. is among the top 3 stocks in GuardCap Asset Management’s 13F portfolio based on its portfolio percentage. The investment manager owns 315,767 shares, making up 8.47% of the 13F portfolio. Its stake increased by 1% in Q2 2022 compared to the previous quarter.
For the three months ended June 30, 2022, Booking Holdings Inc. total revenues increased by 99% y-o-y to $4.3 billion, and its EPS of $21.07 also beat the consensus by $5.23.
Analysts have an average price target of $2,395.23 per share.
2. Alphabet Inc. (NASDAQ:GOOG)
GuardCap Asset Management’s Stake Value: $605,684,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 9.29%
Alphabet Inc., based in Mountain View, California, is the parent company of several companies including the Google, Verily Life Sciences, GV (formerly Google Ventures), Calico, and X-the moonshot factory. The majority of the company’s revenue is generated by Google Services which comprises of ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
According to the latest SEC data, Alphabet Inc. ranked #2 on the list of GuardCap Asset Management’s holdings based on its 13F portfolio weight of 9.29% with the investment manager owning 277,931 shares. Its stake increased by 2% in Q2 2022, compared to the previous quarter.
Alphabet Inc. announced the release of Android 13 earlier in August, adding multiple new features focused on personalization and privacy. The company also released the financial results for Q2 2022 earlier this year in July. Revenue increased by 13% y-o-y to $69.7 billion and the company reported an EPS of $1.21, missing the consensus by $0.08.
In the long term, Alphabet Inc. shares could continue to grow if the company successfully maintains its leading market share in search.
1. CME Group Inc. (NASDAQ:CME)
GuardCap Asset Management’s Stake Value: $858,725,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 13.17%
Based in Chicago, Illinois, CME Group Inc. is the world’s leading derivatives marketplace. Through its trading facilities in New York and Chicago, and its CME Globex® electronic trading platform, CME Group Inc. provides access to products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate.
According to our data, CME Group Inc. holds the highest percentage in GuardCap Asset Management’s 13F portfolio, making up for 13.17% of the portfolio with 4,195,042 shares held by the investment manager. GuardCap’s stake increased by 2% in Q2 2022, compared to the previous quarter.
Earlier this year in July, CME Group Inc. released its financial results for Q2 2022. Revenue increased by 5% y-o-y to $1.2 billion and the company reported EPS of $1.97, beating the consensus by $0.04.
On August 29, the derivatives marketplace operator also announced plans to further expand its cryptocurrency derivatives offering with the introduction of Bitcoin Euro and Ether Euro futures, pending regulatory review.
Although shares of CME Group Inc. have a forward P/E ratio of over 23, the stock could have upside in the long term if the company maintains its market share in financial trading.
You can also take a look at the 10 Best Websites To Research Stocks and Morris Mark’s Mark Asset Management Latest Portfolio: Top 10 Stock Picks.
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This article is originally published at Insider Monkey.
