In this article, we will take a look at the 5 Dow Jones Stocks to Buy According to Hedge Funds. To read our analysis of the Dow Jones Industrial Average Index, its performance, and weighting of the components as well as the risk/reward and methodology of this list, you can go to the 10 Dow Jones Stocks to Buy According to Hedge Funds.
5. Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 69
Goldman Sachs Group, Inc. (NYSE:GS), based in New York, is a leading global financial institution that provides financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments, and individuals.
In July, Goldman Sachs Group, Inc. (NYSE:GS) released its financial results for the quarter ended June 30, 2022. Its total net revenues decreased by 23% y-o-y to $11.9 billion, while its net earnings dipped by 47% y-o-y to $2.9 billion, for the three months. The normalized EPS was recorded at $7.73 per share, exceeding the consensus by $1.17.
In September, Deutsche Bank analyst Matt O’Connor lowered the price target on Goldman Sachs Group, Inc. (NYSE:GS) shares to $370 from $430 and maintained a ‘Hold’ rating on the shares.
As of Q2 2022, 69 of the 895 hedge funds tracked by Insider Monkey owned shares of Goldman Sachs Group, Inc. (NYSE:GS), valued at $4.6 billion. Boykin Curry’s Eagle Capital Management is its largest shareholder with ownership of 3.4 million shares valued at $1.0 billion.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 109
Based in Burbank, California, Walt Disney Company (NYSE: DIS) is a worldwide entertainment company operating across Media and Entertainment Distribution, and Parks, Experiences and Products segments. It operates 6 resort destinations with 12 theme parks and 53 resorts in the US, Europe, and Asia; a cruise line with 4 ships; a beach resort in Hawaii; vacation ownership program; and two guided tour adventure businesses. The company is also home to entertainment brands such as ESPN, Disney+, Hulu, Marvel Studios, and National Geographic, among others.
As of Q2 2022, 109 hedge funds tracked by Insider Monkey held shares of Walt Disney Company (NYSE: DIS), worth $3.2 billion. Ken Griffin’s Citadel Investment Group is its largest hedge fund shareholder.
Here is what Oakmark Fund had to say about The Walt Disney Company (NYSE: DIS) in its Q2 2022 investor letter:
“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
San Francisco, California-based Salesforce, Inc. (NYSE:CRM) is the world’s leading customer relationship management platform provider. Its cloud-based platform has applications for sales, service, marketing, and more, with more than 150,000 companies using the platform.
According to the Insider Monkey data on 895 leading hedge funds, 116 hedge funds were long Salesforce, Inc. (NYSE:CRM) shares as of Q2 2022, with the total shares held by hedge funds valued at $7.9 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder on record with ownership of 15.7 million shares valued at $2.6 billion.
This is what Eagle First Investments had to say about Salesforce, Inc. (NYSE:CRM) in its Q2 2022 investor letter:
“Salesforce is a prime example of our big-tent approach to value investing. Though the US-based provider of cloud-based customer-relationship management (CRM) software would be considered a growth stock by many metrics, we believe its profile is suggestive of a business with unrecognized franchise value that may make for an attractive investment opportunity at an appropriate “margin of safety.” Salesforce has a dominant market position in the CRM space, especially in a cloud segment that by our estimate has been growing at approximately 20% per year as enterprises increasingly embrace the benefits of software-as-a-service. Recent years have seen the company prudently adapt its offerings through organic product extensions and expand into adjacent verticals through acquisition while migrating toward an integrated CRM platform model. Salesforce’s mature, durable market position, track record of cash flow generation and well-aligned management team gives us confidence that it possesses identifiable franchise value—in contrast with many of its peers in the technology space, whose investors often are paying for unrealized earnings and early-stage business development strategies.”
2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.
Major products of Apple Inc. (NASDAQ:AAPL) include the iPhone, Mac PCs, iPad, and accessories while service offerings include Apple Care, Cloud Services, Digital Content and Payment services. iPhone sales accounted for more than half of its revenue in the last fiscal year. The company announced the launch of iPhone 14 in the first week of September which could result in a surge in the company’s revenue.
In July, Apple Inc. (NASDAQ:AAPL) released its financial results for the quarter ended June 25, 2022. Its net sales increased by 2% y-o-y to $83 billion, while its net income declined by 11% y-o-y to $19.4 billion, for the three months. It reported a normalized EPS of $1.20 for the quarter, beating the consensus by $0.05. Apple Inc. (NASDAQ:AAPL) declared a regular cash dividend of $0.23 per share for the quarter.
Apple Inc. (NASDAQ:AAPL) is among the favorites of hedge funds, with 128 of the 895 hedge funds tracked by Insider Monkey holding its shares valued at a whopping $143 billion. Warren Buffet’s Berkshire Hathaway is its biggest shareholder with ownership of 894.8 million shares valued at $122.3 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
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 (NASDAQ:MSFT) boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
Earlier this year, Microsoft agreed to acquire Activision Blizzard, Inc. (NASDAQ:ATVI) in an all-cash transaction valued at $68.7 billion. The proposed acquisition, if completed, is expected to accelerate growth in Microsoft’s Gaming business across mobile, PC, console, and cloud. The acquisition could also help Microsoft Corporation (NASDAQ:MSFT) gain market share in the metaverse market, which is expected to grow substantially in the next ten years.
As of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) is the most sought-after stock among the 895 hedge funds tracked by Insider Monkey as 258 of these hedge funds held shares in the software giant, valued at $56 billion. Fisher Asset Management was the largest shareholder in the company owning 28.7 million shares valued at $7.4 billion.
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