Long-Term Analyst: Buy These 5 Stocks

In this article, we will discuss some of the best stocks to buy according to Dave Smith, the Chief Investment Officer at investment management company Rockland Trust. If you want to explore similar stocks, you can read Long-Term Analyst: Don’t Play the “Fool’s Game” of Timing the Market and Buy These 10 Stocks.

5. Alphabet Inc. (NASDAQ:GOOG)

Rockland Trust’s Stake Value: $27,823,000 

Percentage of Rockland Trust’s 13F Portfolio: 1.92%

Number of Hedge Fund Holders: 153

Alphabet Inc. (NASDAQ:GOOG) is a pioneer in disruptive technologies. Between September 2021 and June 2022, Alphabet Inc. (NASDAQ:GOOG) has reportedly invested over $1.5 billion in blockchain technology. The company has been leading funding rounds for blockchain startups including Fireblocks, Dapper Labs, Voltage, and Digital Currency Group. On August 23, Alphabet Inc. (NASDAQ:GOOG) announced a strategic collaboration with communications equipment company, Casa Systems (NASDAQ:CASA), to help develop its cloud platform. The two companies will jointly develop the Google Cloud-Casa System solutions for cloud-native 5G core, 5G SA multi-access edge computing, and enterprise mobile private network markets.

Wall Street analysts are bullish on Alphabet Inc. (NASDAQ:GOOG). On July 27, Morgan Stanley analyst Brian Nowak raised his price target on Alphabet Inc.(NASDAQ:GOOG) to $145 from $140 and maintained an Overweight rating on the shares. On August 3, Tigress Financial analyst Ivan Feinseth raised his price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 and reiterated a Strong Buy rating on the shares.

At the close of Q2 2022, 153 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG) worth $22.29 billion. As of June 30, Rockland Trust’s stakes in the cloud computing giant are valued at $27.82 million. The investment covers 1.92% of Rockland Trust’s 13F portfolio.

Here is what Arch Capital had to say about Alphabet Inc. (NASDAQ:GOOG) in its second-quarter 2022 investor letter:

“In May we decided to buy Alphabet Inc. (NASDAQ:GOOG) (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”