5 Stocks to Buy Amid Rising Inflation

4. Adobe Inc. (NASDAQ: ADBE)

Number of hedge fund holders: 107  

Adobe Inc. (NASDAQ: ADBE) is a computer software company with leading offerings for digital animators, artists, editors, and other creative professionals. It is placed fourth on our list of 13 stocks to buy amid rising inflation. The stock has returned more than 31% to investors over the past year. The company recently smashed analyst predictions for earnings per share and revenue for the second fiscal quarter, reporting a 25% year-on-year growth in the revenue for digital media and 24% year-on-year growth for creative revenue. 

On June 18, investment advisory Mizuho maintained a Buy rating on Adobe Inc. (NASDAQ: ADBE) stock with a price target of $640. Other advisories like BMO and RBC have Outperform rating on the stock with price targets of $630 and $650 respectively. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Adobe Inc. (NASDAQ: ADBE) with 5.9 million shares worth more than $2.8 billion.

Polen Capital, an investment management firm, published its “Polen Global Growth” first quarter 2021 investor letter and mentioned Adobe Inc. Here is what Polen Capital has to say about Adobe Inc. (NASDAQ: ADBE) in its Q1 2021 investor letter:

“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”