In this article, we will be taking a look at 14 good stocks to invest in right now. To skip our detailed analysis of current stock market news, you can go directly to see the 5 Good Stocks To Invest In Right Now.
The year 2023 has been quite eventful so far, with the rise of generative artificial intelligence, the banking crisis, regulatory crackdowns on crypto, rising interest rates, and much more. Despite all this, businesses and investors alike are continuing to hold on in the hope of turning the tide in their favor. Some professionals believe that such hopes are not ill-founded, as there may very well be significant potential for the market to reach new highs in the near future. For example, Katie Stockton, the founder and managing partner for Fairlead Strategies, joined CNBC’s ‘Halftime Report‘ on September 12 to highlight how major stock indices can still expect to see some upside momentum at this point in time. Here are some of her comments about the market:
“I would say it’s still a cyclical bull trend. We obviously have a corrective phase underway that’s impacted our intermediate term momentum gauges, but not the long-term ones. So we still have long-term upside momentum behind the major indices, and that’s promising.”
At the same time, other professionals have been weighing in on the possibility of further Fed rate hikes. David Bahnsen, the chief investment officer at Bahnsen Group, joined CNBC’s ‘The Exchange‘ on September 12 to comment on this:
“I think the Fed is following markets – markets are not following the Fed, and I think it is a fait accompli that they’re going to pause again at the end of September.”
The Election Year Holds Back The Fed
Bahnsen added that he believes the Fed will refrain from raising rates because the US is heading into an election year. He drew a comparison between this election year and the one in 2016 when the Fed didn’t “touch rates” despite the fact that there were four rate hikes on the schedule. According to Bahnsen, the Fed has been following a policy of staying separate from the country’s politics since 1994, which is why he believes it is unlikely that we will see another rate hike during this election year.
In the midst of these market trends, among talks of a new tech bull market also being on the way, consumers and investors alike have been adopting more optimistic viewpoints toward the market and what they can gain from it. As such, many investors are looking for the best stocks to invest in for the long term alongside good stocks to invest in right now for the short term. We have thus attempted to compile a list of such stocks, including The Walt Disney Company (NYSE:DIS), Berkshire Hathaway Inc. (NYSE:BRK-B), and Wells Fargo & Company (NYSE:WFC), among more.
We used a consensus-based approach by using opinions from financial websites like Forbes Advisor, Motley Fool, and Morningstar to first compile a list of good stocks to invest in right now. We then shortlisted and ranked these stocks by using Insider Monkey’s hedge fund data for the first quarter. The stocks are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.
Good Stocks To Invest In Right Now
14. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 66
Block, Inc. (NYSE:SQ) is a transaction and payment processing services company based in San Francisco, California. The company creates tools that enable sellers to accept card payments while also providing reporting and analytics services.
Mark Palmer at Berenberg initiated coverage on shares of Block, Inc. (NYSE:SQ) with a Buy rating and a $75 price target on September 12.
There were 66 hedge funds long Block, Inc. (NYSE:SQ) in the second quarter, with a total stake value of $3.8 billion.
Like The Walt Disney Company (NYSE:DIS), Berkshire Hathaway Inc. (NYSE:BRK-B), and Wells Fargo & Company (NYSE:WFC), Block, Inc. (NYSE:SQ) is a stock many elite hedge funds are piling into today.
13. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 68
Intuitive Surgical, Inc. (NASDAQ:ISRG) was seen in the portfolios of 68 hedge funds during the second quarter, with a total stake value of $3.5 billion.
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a healthcare equipment company. It develops and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the US and internationally. The company is based in Sunnyvale, California.
RBC Capital’s Shagun Singh Reiterated an Outperform rating and a $360 price target on shares of Intuitive Surgical, Inc. (NASDAQ:ISRG) on August 17.
Citadel Investment Group was the largest shareholder in Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the second quarter, holding 1.9 million shares in the company.
Baron Funds said the following about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its second-quarter 2023 investor letter:
“Strength in health care equipment was largely due to the outperformance of sleep apnea device company Inspire Medical Systems, Inc. and robotic surgery system pioneer Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. manufactures and markets the da Vinci Surgical System, a robotic system used for minimally invasive procedures. Shares increased after Intuitive reported strong first quarter financial results highlighted by a 26% increase in procedures and raised guidance for 2023. These results, which came in well above Street estimates, were driven by strength in general surgery procedures in the U.S. and non-urology procedures outside the U.S. We continue to believe Intuitive has a large opportunity to expand the use of robotic surgery over time.”
12. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 71
As of August 10, Josh Sullivan, an analyst at Morgan Stanley, maintains an Overweight rating on shares of General Electric Company (NYSE:GE). The analyst also raised his price target on the stock from $122 to $125.
General Electric Company (NYSE:GE) is an industrial conglomerate based in Boston, Massachusetts. The company offers gas and steam turbines, a full balance of plant, upgrade, and service solutions, and data-leveraging software for power generation, industrial, government, and other customers.
We saw 71 hedge funds long General Electric Company (NYSE:GE) in the second quarter. Their total stake value was $10.2 billion.
11. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 74
ARK Investment Management was the most prominent shareholder in Shopify Inc. (NYSE:SHOP) at the end of the second quarter, holding 8.9 million shares in the company.
Shopify Inc. (NYSE:SHOP) is an internet services and infrastructure company that provides a commerce platform and related services in Canada, the US, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It is based in Ottawa, Canada.
On August 31, David Hynes at Canaccord Genuity upgraded shares of Shopify Inc. (NYSE:SHOP) from Hold to Buy. The analyst also raised his price target on the stock from $60 to $70.
In total, 74 hedge funds were long Shopify Inc. (NYSE:SHOP) in the second quarter, with a total stake value of $3.9 billion.
“Shopify Inc. (NYSE:SHOP): Shopify shares were a top contributor in the quarter following strong 1Q results and the announced divestiture of its logistics business. Gross Merchandise Volume (GMV) grew 15% year over year as e-commerce sales broadly rebounded and Shopify continued to take market share. Revenue grew 25% driven by increased merchant adoption of multiple products, especially Shop Pay. The company generated $86 million of free cash flow, up from a $46 million loss last year, and announced expectations to be free cash flow positive for each quarter for the rest of the year. The company had previously announced several cost savings plans, which are driving margin and free cash flow improvement, and now plans to divest its capital-intensive logistics arm. Faster growing revenue, lower operating expenses, and a less capital-intensive future were all cheered on by the market.
Last year, 10% of US retail e-commerce sales flowed through SHOP, second only to Amazon, and the company is still enjoying significant tailwinds as retail merchants of all sizes adopt SHOP’s software tools to display, manage and sell their products across a dozen different sales channels. We believe that the overall growth of e-commerce, combined with the development of new products and services, such as its digital wallet Shop Pay, should continue to drive revenue growth of more than 20% per year over the next several years, accompanied by re-acceleration of operating margin growth and FCF generation.”
10. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 75
Morgan Stanley’s Betsy Graseck maintains an Overweight rating on shares of Wells Fargo & Company (NYSE:WFC) as of August 1. The analyst also raised the firm’s price target on the stock from $49 to $52.
Wells Fargo & Company (NYSE:WFC) was spotted in the 13F holdings of 75 hedge funds in the second quarter, with a total stake value of $4.1 billion.
Wells Fargo & Company (NYSE:WFC) is a diversified banking and financial company based in San Francisco, California. The company provides banking, investment, mortgage, and consumer and commercial finance products and services in the US and internationally.
9. Mercadolibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 77
Mercadolibre, Inc. (NASDAQ:MELI) is a broad-line retail company that operates online commerce platforms in Latin America to enable businesses, merchants, and individuals to list merchandise and conduct sales and purchases online. It is based in Montevideo, Uruguay.
Our hedge fund data for the second quarter shows 77 hedge funds long Mercadolibre, Inc. (NASDAQ:MELI). Their total stake value was $3.3 billion.
Soomit Datta at New Street Research upgraded shares of Mercadolibre, Inc. (NASDAQ:MELI) from Neutral to Buy while announcing a price target of $1650 on the stock on September 1.
Holding 580,023 shares in the company, Generation Investment Management was the most prominent shareholder in Mercadolibre, Inc. (NASDAQ:MELI) at the end of the second quarter.
“MercadoLibre, Inc. (NASDAQ:MELI) is the largest e-commerce company in Latin America, with its largest markets being Brazil, Argentina, and Mexico. The company offers a comprehensive suite of services, including an online marketplace for buyers and sellers, payment solutions through Mercado Pago, merchant and buyer financing through Mercado Credito, shipping services through Mercado Envios, and asset management through Mercado Fondo, among other services. We believe the e-commerce market within Latin America remains underpenetrated, creating a favorable backdrop for MercadoLibre, as they have been growing and investing heavily to expand its first mover advantage. Moreover, the company’s growing fintech payments business. Mercado Pago. is well-positioned to potentially emerge as a leader in Latin America, as well as an emerging online advertising presence which offers attractive margin expansion potential, in our view. While the company posted strong quarterly results, shares fell on fears that their exposure to Argentina, which saw its currency devalued, would impact company revenues in the near-term.”
8. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 78
Datadog, Inc. (NASDAQ:DDOG) had 78 hedge funds long its stock in the second quarter, with a total stake value of $2.4 billion.
A Buy rating was maintained on shares of Datadog, Inc. (NASDAQ:DDOG), alongside a price target of $125, on August 30 by Fatima Boolani at Citigroup.
Datadog, Inc. (NASDAQ:DDOG) is an application software company based in New York. The company operates an observability and security platform for cloud applications in North America and internationally.
“Datadog, Inc. (NASDAQ:DDOG): DDOG was a top detractor in the quarter. The company reported strong 4Q results including 44% revenue growth and 30% earnings growth but gave cautious revenue guidance for 2023. Macroeconomic headwinds have caused clients to slow the transition of workloads to the cloud and instead to optimize current capacity. Despite this temporary slowdown, DDOG still expects revenue to grow nearly 25% in 2023.
As businesses have transitioned to cloud software infrastructure, much of which is in isolated data silos, it has become increasingly difficult for data engineers to monitor and analyze system performance. Datadog provides a SaaS software platform to monitor and analyze the system performance of software applications and IT infrastructure by giving users a single page view to observe their company’s technology stack. The company has quickly grown its revenue from $100 million in 2017 to $1.7 billion in 2022 and, we believe, should continue to grow revenue at more than 20% annually as it penetrates its $40 billion and fast-growing market. Less than 10% of software applications are currently monitored. The company’s dollar-based net retention rate has been 130%+ as existing customers continue to use an increasing number of products and the company continues to add new features. As of 4Q22, 81% of customers used 2+ products, while only 18% of customers used 6+ products (up from less than 1% two years ago). As an extremely capex light software business, DDOG already has significant free-cash-flow ($350m in 2022) and free-cash-flow margins (21% in 2022).”
Like The Walt Disney Company (NYSE:DIS), Berkshire Hathaway Inc. (NYSE:BRK-B), and Wells Fargo & Company (NYSE:WFC), Datadog, Inc. (NASDAQ:DDOG) is a highly popular stock today.
7. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 92
The Walt Disney Company (NYSE:DIS) is a communication services company based in Burbank, California. The company operates entertainment businesses worldwide through its Disney Media and Entertainment Distribution, and Disney Parks, Experiences, and Products segments.
A total of 92 hedge funds were long The Walt Disney Company (NYSE:DIS) in the second quarter, with a total stake value of $2.2 billion.
Rosenblatt’s Barton Crockett reiterated a Buy rating and a $104 price target on The Walt Disney Company (NYSE:DIS) shares on September 12.
“The Walt Disney Company (NYSE:DIS): DIS was a top detractor in the quarter following mixed FY2Q results. Revenue of $22 billion was up 13% year over year, although EPS, at $0.93, was down 14% year over year. Disney Plus, part of the company’s direct-to-consumer business (DTC), had better subscriber numbers than anticipated despite a price increase, although losses at the DTC business as a whole are growing. The linear TV business also continues to suffer secular headwinds with – 10% revenue growth, and the company faced inflationary cost pressures at its theme parks.
DIS is nevertheless blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, with a plan to release over 100 original titles per year on a $30 billion annual content production budget. Now that the disruption in its theme park, cruise and theatrical businesses has come to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution.
We think the return of long-time CEO Bob Iger will lead to higher and more consistent profitability at the theme parks, better value realization in the linear assets, and consolidation of the company’s DTC assets leading to higher profitability sooner. We therefore expect DIS to grow its free cash flow significantly over the next 3-4 years, from its depressed $1 billion last year, returning to and exceeding its previous $10 billion peak in 2018.”
6. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 109
Bill & Melinda Gates Foundation Trust was the largest shareholder in Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the second quarter, holding 25.1 million shares in the company.
Berkshire Hathaway Inc. (NYSE:BRK-B) is a financial company based in Omaha, Nebraska. It engages in the insurance, freight rail transportation, and utility businesses worldwide.
In the second quarter, 109 hedge funds were long Berkshire Hathaway Inc. (NYSE:BRK-B). Their total stake value was $15.5 billion.
A Buy rating and a $414 price target were maintained on shares of Berkshire Hathaway Inc. (NYSE:BRK-B) on August 7 by Brian Meredith, an analyst at UBS.
Click to continue reading and see the 5 Good Stocks To Invest In Right Now.
- 10 Best Stocks to Buy for Good Returns
- 15 Good Stocks To Invest In
- 13 Best Stocks To Invest In According to AI
Disclosure: None. 14 Good Stocks To Invest In Right Now is originally published on Insider Monkey.