We recently compiled a list of the 10 most promising long-term stocks by hedge funds. In this article, we’ll take a look at where Apple Inc. (NASDAQ:AAPL) ranks among the most promising long-term stocks, according to hedge funds.
Further 50bps reduction remains restrictive
The labor market has never been more resilient. On October 4, Gary Cohn, vice chairman of IBM and former director of the National Economic Council in the Trump administration, appeared in an interview with Yahoo Finance and talked about employment statistics and the US economy.
Cohn suggested that the jobs report should be taken with a grain of salt because it’s not the most scientific information the government releases. However, we emphasize the importance of understanding trends. The number of people entering the labor force is expanding, jobs are being created, and the market is assumed to be in a neutral position.
Cohn believes the U.S. economy is normalizing. He clarified that the current situation is quite reasonable compared to history, as we have not had a normal economic life for more than a decade. He added that the Fed is orchestrating a soft landing and expects another 50 basis point rate cut by the end of 2024, which he says remains restrictive.
Portfolio manager highlights high-growth sectors
As the AI dust begins to subside, the market could see major changes. On October 7th, Keith Buchanan, Senior Portfolio Manager at GLOBALT Investments, appeared in an interview. Yahoo Finance to discuss his expectations for the market.
Earnings expectations have been revised from mid-single digits to mid-double digits, promising solid growth as 2024 draws to a close. Buchanan suggested that much of the growth will come from artificial intelligence and the expansion of profit growth beyond traditional growth areas such as technology.
This year, the industrial and energy sectors accounted for the bulk of the market and enjoyed greater gains. Buchanan is extremely bullish on AI trends and value stocks. He also added that financial, industrial and consumer goods names are poised for growth into 2024. He advises investors to consider geopolitical events before making investment decisions.
Now that we’ve assessed the prospects and growth sectors of the financial markets, let’s take a look at the 10 most promising long-term stocks according to hedge funds.
our methodology
To find the most promising long-term hedge fund stocks, we looked at multiple rankings on the internet and compiled a list of long-term blue-chip stocks. We then looked at analyst upside and hedge fund sentiment for these stocks as of Q2 2024 and selected the most popular stocks. Stocks are sorted by ascending number of hedge fund holders as of Q2 2024 as a primary metric, with analyst upside as of October 13 as a secondary metric.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 points (Click here for details).
Apple Inc. (NASDAQ:AAPL)
Number of hedge fund holders: 184
Analyst upside as of October 13, 2024: 10%
Apple Inc. (NASDAQ:AAPL), the popular company behind the iPhone, ranks No. 3 on hedge funds’ list of most promising stocks. The company offers a wide range of products including iCloud, Apple Pay, Apple Music, and Apple TV+.
The company leverages artificial intelligence to deliver an unparalleled experience to its customers. During the third quarter of fiscal 2024, Apple Inc. (NASDAQ:AAPL) launched Apple Intelligence, Apple’s AI-powered personal intelligence. This system is integrated into new iPhones, iPads, and Macs.
Speaking of the biggest revenue source, iPhone generated revenue worth $39.3 billion in Q3 2024, accounting for nearly 45% of total revenue. Over the past decade, Apple Inc. (NASDAQ:AAPL) has grown its revenue and net income by 8% and 10%, respectively.
Last month, the company launched the new iPhone 16, iOS 18 system, AirPods 4, and Apple Watch Series 10 worldwide. Apple is betting on a new iPhone, but integrated artificial intelligence systems could help boost Apple Inc.’s (NASDAQ:AAPL) financial performance.
Columbia Contrarian Core Fund said the following regarding Apple Inc. (NASDAQ:AAPL) in Q2 2024: letter to investors:
“Apple Inc.” (NASDAQ:AAPL) – Apple ended the quarter boosted by its long-awaited AI announcement at its annual Worldwide Developers Conference (WDC), despite a drop in its stock price after its late May earnings release. We have regained momentum. At the conference, the company unveiled some of the new AI capabilities powered by Apple Intelligence that will be included in Apple products, and also announced a partnership with ChatGPT. Investors enthusiastically welcomed the announcement of Apple’s AI strategy, and the stock soared, overtaking Microsoft to become the world’s most valuable company (although this distinction did not last long). Beta testing of these new features is expected to take place later this summer, but the company hopes to convince users who’ve had the same smartphone for years to consider upgrading, and the initial promise and excitement will culminate in the upgrade cycle. This seems like a potential catalyst. ”
Entire AAPL 3rd place It’s on hedge funds’ list of most promising long-term stocks. While we see AAPL’s potential, we believe AI stocks have a better chance of delivering higher returns in a shorter time frame. If you’re looking for AI stocks with more promise than AAPL, but trading at less than 5x earnings, check out our report. cheapest AI stocks.
Read next: A $30 trillion opportunity: Morgan Stanley’s top 15 humanoid robot stocks to buy and Jim Cramer says NVIDIA has ‘become a wasteland’.
Disclosure: None. This article originally appeared on Insider Monkey.
