5 Stocks Better than Zillow According to Hedge Funds

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 138 

Apple Inc. (NASDAQ:AAPL) posted earnings for the third quarter in late October, beating market estimates on earnings per share but missing on revenue by $1.6 billion. There was a lot of analyst chatter around the firm after the results, with most still bullish on the stock but at lowered targets. The troubles seem rooted in supply chain issues that are hampering production. Reports indicate that Apple is sacrificing iPad production to meet iPhone 13 demand.

However, Apple Inc. (NASDAQ:AAPL) remains one of the most valuable firms in the world with solid fundamentals that long-term investors dream about. It is likely it will find a way out of the near-term problems to emerge stronger in the coming months. 

At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc. (NASDAQ:AAPL), up from 127 in the preceding quarter worth $131 billion.

In its Q1 2021 investor letter, Distillate 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 is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”