Top 5 Stocks To Buy In 5 Different Sectors for the Next 3 Months

In this article, we will be taking a look at the top 5 stocks to buy in 5 different sectors for the next 3 months. To read our detailed analysis of changing stock market dynamics today, you can go directly to see the Top 10 Stocks To Buy In 10 Different Sectors for the Next 3 Months.

5. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 144

Sector: Industrials

Ken Gawrelski at Wells Fargo maintains an Overweight rating and a $59 price target on Uber Technologies, Inc. (NYSE:UBER) as of August 17.

Uber Technologies, Inc. (NYSE:UBER) is a passenger ground transportation company offering ridesharing and taxi services through its proprietary technology. It is based in San Francisco, California.

Uber Technologies, Inc. (NYSE:UBER) had 144 hedge funds long its stock in the second quarter, with a total stake value of $7.7 billion.

4. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Sector: Financials

Visa Inc. (NYSE:V) is a transaction and payment processing services company. It is based in San Francisco, California.

Morgan Stanley’s Hames Faucette maintains an Overweight rating and a $292 price target on Visa Inc. (NYSE:V) shares as of July 26.

A total of 171 hedge funds were long Visa Inc. (NYSE:V) in the second quarter. Their total stake value was $24.9 billion.

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

Sector: Communication Services

In the second quarter, 225 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), with a total stake value of $30.9 billion.

Meta Platforms, Inc. (NASDAQ:META) is an interactive media and services company. It is based in Menlo Park, California.

A Buy rating and a $375 price target were placed on Meta Platforms, Inc. (NASDAQ:META) on August 18 by Rob Sanderson at Loop Capital.

Here’s what Baron Funds said about Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2023 investor letter:

“Shares of Meta Platforms, Inc. (NASDAQ:META), the world’s largest social network continued their upward trajectory, rising by 35.4% due to stabilizing revenues and ongoing improvements in margins. Meta reported continued growth in Instagram Reels adoption and other new advertising products. In addition, the company’s advancements in AI continue contributing to its targeting and measurement capabilities, while GenAI innovation presents an opportunity for new products and incremental monetization. The company also achieved a significant milestone of 3 billion daily active users across its family of apps, representing a 5% year-over-year increase. User engagement remains robust, with video content and Instagram Reels playing a significant role in user time on the platform. The monetization gap between Reels and other ad formats is steadily narrowing, and Meta anticipates it will reach revenue neutrality by late 2023 or early 2024. Meta has also reported an increase in its speed and agility of execution following the recent organizational changes and cost cuts. Longer term, we believe Meta will benefit from its leadership in mobile advertising, massive user base, innovative culture, leading GenAI research and potential distribution, and technological scale, with further monetization opportunities ahead.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Sector: Consumer Discretionary

Amazon.com, Inc. (NASDAQ:AMZN) is a broad-line retail e-commerce company. It is based in Seattle, Washington.

Amazon.com, Inc. (NASDAQ:AMZN) was in the portfolios of 278 hedge funds during the second quarter. Their total stake value was $34.9 billion.

Alex Haissl at Redburn Partners has a Buy rating and a $230 price target on Amazon.com, Inc. (NASDAQ:AMZN) as of August 11.

Baron Funds said the following about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2023 investor letter:

Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. During the quarter, Amazon’s shares increased 26.2% as a result of improving investor perception regarding the company’s advancements in AI, as well as an anticipated slowdown in customer cloud optimization initiatives, which is expected to pave the way for the reacceleration of growth in Amazon Web Services in the latter part of 2023. We are also optimistic about Amazon’s ability to significantly enhance the profitability of its core North American retail segment in the short to medium term. This optimism stems from the company’s transition to a new regionalized fulfillment network, the rightsizing of its infrastructure from the increased spending levels during the early stages of the pandemic, and its rapidly growing advertising business, which is margin accretive. Looking further ahead, Amazon’s potential for growth in e-commerce remains substantial, considering it currently captures less than 15% of its total addressable market. Amazon also remains the clear leader in the vast and growing cloud infrastructure market, with large opportunities in application software, including enabling GenAI workloads.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Sector: Information Technology

Redburn Partners’ Alex Haissl holds a Buy rating and a $440 price target on Microsoft Corporation (NASDAQ:MSFT) as of August 11.

We saw 300 hedge funds long Microsoft Corporation (NASDAQ:MSFT) in the second quarter, with a total stake value of $69.8 billion.

Microsoft Corporation (NASDAQ:MSFT) is a systems software company. It is based in Redmond, Washington.

This is what Third Point Management said about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”

See also 10 Best Diversified Bank Stocks to Buy Now and 10 Most Diversified Stocks.