Home Hedge Funds 14 Best US Stocks For Foreign Investors

14 Best US Stocks For Foreign Investors

14
0

In this article, we discuss the 14 best US stocks for foreign investors. If you want to read about some more US stocks that foreigners should consider for their portfolios, go directly to the 5 Best US Stocks For Foreign Investors.

Late last year, investors flocked to Treasuries amid expectations of rate cuts by the Fed as early as the first quarter of this year. This surge in demand caused government bond prices to rebound sharply from 16-year lows. However, many investors are now reassessing their positions following robust U.S. jobs data and a cautious tone from the Fed, with the central bank recently warning that a strong economy could lead to inflationary pressures if rates are reduced prematurely. While investors still anticipate multiple rate cuts this year, there is now greater uncertainty regarding the timing and extent of the Fed’s monetary easing measures.

That said, investors would do well to recall that the NASDAQ Composite experienced a sharp decline of over 33% in 2022 amid concerns of a recession. Even during the pandemic-induced volatility of 2020, characterized by surges in tech-heavy growth stocks, the index closed the year with an impressive gain of nearly 44%. It appears that this positive momentum is carrying into 2024, with many investors maintaining confidence in their tech holdings and anticipating further profitability as the year unfolds. The latest growth indicators suggest that the index is poised for another record-setting year in the market.

On February 1, Farzin Azarm from Mizuho Americas discussed current trends in the US tech sector and investors’ continued focus on tech stocks during an appearance on CNBC. Azarm suggests that the persistent favoritism towards US tech stocks is leading to a disregard for stocks from other regions, particularly those from China. He posits that a significant shift in the US tech and AI sectors is necessary to redirect investment interest towards Chinese stocks. Azarm notes that investors, having already allocated substantial funds to pricey American stocks, are hesitant to further invest in similarly expensive companies.

Given the circumstances outlined above, it’s no wonder that renowned companies like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) remain top contenders as some of the best American stocks to invest in, both in the eyes of analysts and investors.

14 Best US Stocks For Foreign Investors

An aerial view of a bustling financial market, highlighting the complexity of the public finance sector.

Our Methodology

For this list, we utilized a stock screener to identify stable companies exhibiting revenue growth exceeding 10%. Subsequently, we ranked them by market capitalization to highlight the largest companies. Our selection process focused on identifying the top US stocks for foreign investors, considering both revenue growth and hedge fund sentiment as of the third quarter of 2023. The list is organized in ascending order based on the number of hedge fund holders. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

14. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 85

Quarterly Revenue Growth: 17.16%

Merck & Co., Inc. (NYSE:MRK), a distinguished American multinational pharmaceutical company headquartered in Rahway, New Jersey, boasts a rich history dating back to the establishment of the Merck Group in Germany in 1668. Originally the American arm of this venerable group, the company operates under the names Merck Sharp & Dohme or MSD outside the United States and Canada. It holds a prominent position in the pharmaceutical industry, specializing in the development of medicines, vaccines, biologic therapies, and animal health products.

Demonstrating a consistent pattern of dividend growth for 11 consecutive years, the company currently offers a quarterly dividend of $0.77 per share, resulting in a dividend yield of 2.42% as of February 7.

Insider Monkey sifted through 910 hedge funds for their third-quarter 2023 investments, revealing that 85 had invested in Merck & Co., Inc. (NYSE:MRK), up from 78 in the previous quarter.

Much like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Merck & Co., Inc. (NYSE:MRK) operates as one of the best American stocks to invest in.

13. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 88

Quarterly Revenue Growth: 21.71%

Headquartered in Charlotte, North Carolina, at the Bank of America Corporate Center, Bank of America Corporation (NYSE:BAC) stands as a leading American multinational investment bank and financial services holding company. Serving a diverse clientele spanning individual consumers, large corporations, and governments worldwide, the bank is renowned for its comprehensive range of financial solutions.

Investors appreciate Bank of America Corporation (NYSE:BAC)’s solid dividend performance, with the company offering a quarterly dividend of $0.24 per share, resulting in an appealing dividend yield of 2.89% as of February 7.

Insider Monkey’s data for the third quarter of 2023 revealed that 88 out of the 910 hedge funds tracked had invested in Bank of America Corporation (NYSE:BAC). Notably, Warren Buffett’s Berkshire Hathaway held the largest stake in the company, with an impressive $28.2 billion investment.

12. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 102

Quarterly Revenue Growth: 12.49%

Netflix, Inc. (NASDAQ:NFLX) is a California-based company renowned for its subscription video-on-demand over-the-top streaming service, available in over 190 countries.

On January 23, Netflix, Inc. (NASDAQ:NFLX) reported a Q4 GAAP EPS of $2.11, slightly below Wall Street estimates by $0.11. However, revenue for the period increased 12.5% year-over-year to $8.83 billion, surpassing market expectations by $120 million. The company’s global streaming paid memberships saw a significant increase of 13.12 million, reaching 260.28 million. Netflix, Inc. (NASDAQ:NFLX) also provided guidance for Q1 2024, expecting revenue of $9.24 billion, slightly below the consensus estimate of $9.26 billion, and projected earnings per share of $4.49, surpassing the consensus estimate of $4.14.

According to Insider Monkey’s third-quarter database, 102 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX), down from 114 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management is among the biggest stakeholders of the company, holding 2.5 million shares valued at over $970 million.

11. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 104

Quarterly Revenue Growth: 14.06%

Headquartered in Minnetonka, Minnesota, UnitedHealth Group Incorporated (NYSE:UNH) is a leading American multinational corporation specializing in managed healthcare and insurance services, operating as a for-profit entity. The corporation is structured into four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Recognized as one of the best American stocks to buy, UnitedHealth Group Incorporated (NYSE:UNH) offers a quarterly dividend of $1.88 per share as of February 7.

Insider Monkey’s database of 910 hedge funds reveals that 104 hedge funds reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH). The most significant stakeholder in the firm during this period was Rajiv Jain’s GQG Partners, which holds a $1.63 billion stake in the company.

Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:

“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.

10. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 109

Quarterly Revenue Growth: 31.14%

Based in New York City and incorporated in Delaware, JPMorgan Chase & Co. (NYSE:JPM) stands as a leading American multinational financial services corporation and the largest bank in the United States.

On December 12, JPMorgan Chase & Co. (NYSE:JPM) declared a quarterly dividend of $1.05 per share on its outstanding common stock. The dividend was scheduled to be distributed on January 31, to shareholders of record as of January 5, 2024.

Insider Monkey’s Q3 2023 database revealed that 109 hedge funds held stakes in JPMorgan Chase & Co. (NYSE:JPM), a slight increase from 106 in the previous quarter. The combined value of these holdings exceeds $6.6 billion.

JPMorgan Chase & Co. (NYSE:JPM) joins the ranks of Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) as one of the best American stocks to buy.

9. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 110

Quarterly Revenue Growth: 10.16%

Headquartered in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company specializing in the development of computer processors and associated technologies, catering to both business and consumer markets.

On February 1, Citi analyst Christopher Danely noted an increase in Advanced Micro Devices, Inc. (NASDAQ:AMD)’s guidance for artificial intelligence-related revenue, now anticipating $3.5 billion in sales for the current year, up from the previous estimate of $2 billion. Citi suggested that the company might intentionally be underestimating, and Advanced Micro Devices, Inc. (NASDAQ:AMD)’s CEO expressed confidence in surpassing the $3.5 billion figure for this year.

As of Q3 2023, Insider Monkey tracked 110 hedge funds holding shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), with a total value of $9.2 billion. Among them, Fisher Asset Management, led by Ken Fisher, emerged as the largest hedge fund shareholder, with ownership of 27.8 million shares valued at $2.9 billion.

8. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 112

Quarterly Revenue Growth: 13.22%

Headquartered in California, Adobe Inc. (NASDAQ:ADBE) is a versatile software company offering a wide range of products and solutions that empower individuals, teams, and enterprises to create, publish, and promote content. Renowned as a top choice for content creators, students, professionals, and consumers alike, Adobe Inc. (NASDAQ:ADBE) also operates a Digital Experience segment, serving brands and businesses in managing, implementing, and monetizing customer experiences.

On December 13, Adobe Inc. (NASDAQ:ADBE) announced a Q4 non-GAAP EPS of $4.27 and revenue of $5.05 billion, surpassing Wall Street estimates by $0.13 and $30 million, respectively. One of the best American stocks for foreign investors, the company repurchased approximately 1.8 million shares during the fourth quarter of 2023.

Insider Monkey’s third-quarter database revealed that 112 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), up from 109 funds in the previous quarter. Leading the pack, Ken Fisher’s Fisher Asset Management holds the largest stake in the company, with 4.5 million shares valued at $2.3 billion.

7. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 122

Quarterly Revenue Growth: 11.27%

Salesforce, Inc. (NYSE:CRM) stands out as a prominent American cloud-based software company specializing in customer relationship management. With a suite of tailored software and applications spanning sales, customer service, marketing automation, e-commerce, analytics, and application development, Salesforce caters to a diverse range of business needs.

On January 30, BofA designated Salesforce, Inc. (NYSE:CRM) as one of their top picks for 2024. Analyst Brad Sills highlighted Salesforce’s strategic positioning to further expand its market share in the cumulative $200 billion market. Notably, Sills emphasized Salesforce’s competitive advantage, boasting a market share of only 15% and a robust moat derived from its extensive installed base of over 150,000 customers in the core sales/front office category.

In Insider Monkey’s Q3 2023 database, 122 out of 910 hedge funds had invested in Salesforce, Inc. (NYSE:CRM), with Fisher Asset Management, led by Ken Fisher, emerging as the largest shareholder with a $2.87 billion investment during the specified period.

6. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 140

Quarterly Revenue Growth: 12.61%

Based in Purchase, New York, Mastercard Incorporated (NYSE:MA) holds the second position globally among payment-processing corporations. It offers a wide range of financial services, including credit and debit cards, along with solutions in data analytics, settlements, and payment deferrals.

As of February 6, Mastercard Incorporated (NYSE:MA) issues a quarterly dividend of $0.66 per share, resulting in a dividend yield of 0.57%. With a commendable track record of dividend growth spanning 10 consecutive years, Mastercard Incorporated (NYSE:MA) stands out as a compelling choice for investors seeking stable returns.

Insider Monkey’s data on 910 hedge funds indicates significant interest in Mastercard. In Q3 2023, 140 hedge funds held shares in Mastercard Incorporated (NYSE:MA), with a combined value of $14.7 billion. The largest shareholder was Charles Akre’s Akre Capital Management, with 5.85 million shares valued at $2.31 billion.

Similar to Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Mastercard Incorporated (NYSE:MA) is one of the best American stocks for foreign investors to buy.

Click to continue reading and 5 Best US Stocks For Foreign Investors.

Suggested articles:

Disclosure: None. 14 Best US Stocks For Foreign Investors is originally published on Insider Monkey.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here