5 Cash-Rich Defensive Stocks to Buy Before Recession

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Free Cash Flow as of August 29: $107.58 billion

Apple Inc. (NASDAQ:AAPL) is a diversified technology company. On August 24, a report by Counterpoint Research revealed that the company witnessed 147% year-over-year growth in the premium Chinese smartphones market in the second quarter of 2022, despite a slowing Chinese economy where consumers are cutting back their spending. Reports suggest that the company has raised plans for the December quarter and the second-half of the year to 100 million units, up from a prior 88 million previously. 

On August 19, KeyBanc analyst Brandon Nispel maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $185 from $177, noting that the firm had taken a strong start to the second half of the year.  

At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the preceding quarter worth $182 billion.

In its Q2 2022 investor letter, Wedgewood Partners, 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) grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple Inc. (NASDAQ:AAPL) is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”