5. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 39
Shell plc (NYSE:SHEL), a London-based energy and petrochemical corporation, is one of the best global stocks to buy now, with operations in Europe, Asia, Oceania, Africa, the United States, and the rest of the Americas. Reuters reported on October 5 that Qatar will include Shell plc (NYSE:SHEL) as one of the partners in the second phase of the country’s massive liquefied natural gas expansion.
On September 12, Piper Sandler analyst Ryan Todd raised the price target on Shell plc (NYSE:SHEL) to $80 from $75 and kept an Overweight rating on the shares. The analyst remains constructive on the integrated oils sector, noting that near-record distillate margins continue to generate upside in refining estimates and will potentially do so through the winter and into an “equally tight” 2023.
According to Insider Monkey’s data, 39 hedge funds were long Shell plc (NYSE:SHEL) at the end of the second quarter of 2022, compared to 37 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held the leading stake in the company, consisting of 20.25 million shares worth over $1 billion.
Here is what Harding Loevner International Equity Fund has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:
“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multinational companies were at risk of declining sales from increasingly hostile, siloed countries. Royal Dutch Shell (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”
4. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 43
Aptiv PLC (NYSE:APTV) was founded in 2011 and is based in Dublin, Ireland. The company designs, manufactures, and sells vehicle components worldwide, in addition to offering electronic and safety technology solutions to the automotive and commercial vehicle markets. On September 13, Aptiv PLC (NYSE:APTV) announced that it has agreed to acquire an 85% equity stake in Intercable Automotive Solutions, a subsidiary of Intercable, for €595 million. The acquisition will elevate Aptiv PLC (NYSE:APTV)’s portfolio of high-voltage system solutions.
On September 28, Berenberg analyst Jared Maymon assumed coverage of Aptiv PLC (NYSE:APTV) with a Buy rating and a $130 price target, citing the company’s sizable market share and its investments in high-voltage electrification, active safety, and user experience.
Among the hedge funds tracked by Insider Monkey, 43 funds were bullish on Aptiv PLC (NYSE:APTV) at the end of June 2022, compared to 48 funds in the last quarter. Ian Simm’s Impax Asset Management is the biggest stakeholder of the company, with 4.7 million shares worth $417 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Aptiv PLC (NYSE:APTV) in its Q1 2022 investor letter:
“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”
3. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 47
ASML Holding N.V. (NASDAQ:ASML) was founded in 1984 and is headquartered in Veldhoven, the Netherlands. The company develops, sells, and services advanced semiconductor equipment systems for memory and logic chipmakers. ASML Holding N.V. (NASDAQ:ASML) operates in Japan, South Korea, Singapore, Taiwan, China, the Netherlands, Europe, the United States, and the rest of Asia, making it one of the best global stocks to consider.
On August 31, UBS analyst Francois-Xavier Bouvignies upgraded ASML Holding N.V. (NASDAQ:ASML) to Buy from Neutral with a price target of EUR 665, up from EUR 630. As per the analyst, ASML Holding N.V. (NASDAQ:ASML) is one of the “most attractive names” in the presently uncertain macro environment. The analyst believes the shares have limited downside due to the company’s solid visibility and pricing power.
According to Insider Monkey’s data, 47 hedge funds were long ASML Holding N.V. (NASDAQ:ASML) at the end of June 2022, compared to 46 in the preceding quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is one of the leading stakeholders of the company, with 726,787 shares worth about $346 million.
Here is what Baron Opportunity Fund has to say about ASML Holding N.V. (NASDAQ:ASML) in its Q2 2022 investor letter:
“ASML Holding N.V. designs and manufactures semiconductor production equipment. It specializes in photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that become printed circuits. ASML is the dominant leader across all types of lithography but, most importantly, is the only company selling equipment for extreme ultra-violet (EUV) lithography, the latest generation technology.
Indeed, because of the stalling out of Moore’s Law, advanced lithography of larger and multi-patterned silicon chips has been critical for leading-edge chip manufacturing and continued improvement in semiconductor chip performance over time. The company is well positioned to continue growing above industry rates as it rapidly adds capacity across its entire business to meet rising industry demand, especially from leading-edge customers continuing to invest to stay ahead of their competitors and drive chip performance forward.
Additionally, the introduction of high-NA EUV technology in the middle of the decade will add another leg to the growth opportunity.”
2. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 54
Next on our list of the best global stocks is Medtronic plc (NYSE:MDT), an Irish company that manufactures and sells device-based medical therapies to healthcare systems, clinicians, and patients worldwide. Despite supply constraints, Medtronic plc (NYSE:MDT) returned notable amounts of cash to shareholders last year and is positioned to do so this year as well.
On October 5, Citi analyst Joanne Wuensch reiterated a Buy recommendation on Medtronic plc (NYSE:MDT) but lowered the price target on the shares to $108 from $110. The analyst is bullish on device utilization in a normalized environment and said “the best thing that could come out of the 3Q season is an in-line delivery, 2022 reiterations, and a level setting for 2023.”
According to Insider Monkey’s data, 54 hedge funds were long Medtronic plc (NYSE:MDT) at the end of June 2022, and Arrowstreet Capital featured as the leading position holder in the company, with 3.8 million shares worth $338.3 million.
“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”
1. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 61
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Accenture plc (NYSE:ACN) was founded in 1951 and is based in Dublin, Ireland. It is a professional services company, offering strategy, consulting, and technology services worldwide. On September 22, Accenture plc (NYSE:ACN) declared a $1.12 per share quarterly dividend, a 15.5% increase from its prior dividend of $0.97. The dividend is payable on November 15, to shareholders of record on October 13. Accenture plc (NYSE:ACN) has also recently approved $3 billion in additional share repurchase capacity, bringing total repurchase authority to approximately $6.1 billion.
On September 26, Barclays analyst Ramsey El-Assal maintained an Overweight rating on Accenture plc (NYSE:ACN) but lowered the price target on the shares to $340 from $370. The analyst updated his model for the company.
According to Insider Monkey’s data, 61 hedge funds held stakes worth $3.16 billion in Accenture plc (NYSE:ACN) at the end of Q2 2022, compared to 63 funds in the prior quarter worth $3.95 billion. Nicolai Tangen’s Ako Capital is the largest stakeholder of the company, with 2.3 million shares valued at more than $636 million.
Here is what Baron Durable Advantage Fund has to say about Accenture plc (NYSE:ACN) in its Q2 2022 investor letter:
“Accenture plc provides consulting and technology services to corporate clients worldwide. Quarterly financial results exceeded Street expectations with 22% revenue growth and 23% operating income growth. However, shares fell 17.5% during the quarter due to adverse foreign currency movements weighing on next quarter’s guidance and investor concerns about macroeconomic uncertainty impacting client demand. We believe demand for Accenture’s services will be resilient over the long term and the company will continue gaining share in a large global market helping its clients digitally transform.”