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23 Most Profitable Stocks of the Last 12 Months

In this article, we discuss the 23 most profitable stocks of the last 12 months. If you want to skip our detailed analysis of these stocks, go directly to 5 Most Profitable Stocks of the Last 12 Months

The United States stock market has come a long way since the turn of the millennium more than two decades ago. Emerging from the dotcom boom and bust without permanent damage, the economy has faced the financial meltdown of 2008, a tech-enabled boom that has resulted in trillion dollar valuations, and the pandemic crisis of 2020 that ground business to almost a complete halt across the globe. From 2003 to 2023, the benchmark S&P 500 has registered double digits annual returns thirteen times.

Investors at the stock market have made money from this growth by piling into profitable stocks like Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL). However, even as these tech stocks become the hottest equities, old-school value investing has yet to lose charm. Value investors who like to invest in profitable companies with high gross margins and net income have made shrewd investments in businesses with a solid track record over these twenty years. For example instead of NVDA, we identified the cheapest AI stock that is trading at less than 5 times market value excluding cash and investments using the value investing approach.

The present condition of the stock market is better understood in the context of a recent research report by investment advisory Deutsche Bank. The report underlines that the seven biggest companies in the S&P 500 now have a combined market capitalization that make these firms the second biggest stock market in the world, almost double the size of the Japanese market that is in fourth position. Jim Reid, the head of global economics and thematic research at the advisory, has warned that this makes the US market most concentrated in history. 

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The fortunes of these firms are set to rise even further as AI hype and rate cut expectations serve to increase interest in growth stocks. Businesses are investing heavily in AI tools to keep pace with industry demand in this regard. Satya Nadella, the CEO of Microsoft Corporation (NASDAQ:MSFT), recently highlighted the role that he expected AI to play in changing work trends in the coming years and months. He made these comments during the second quarter earnings call at the end of January. 

“A growing body of evidence makes clear the role AI will play in transforming work. Our own research, as well as external studies, show as much as 70% improvement in productivity, using generative AI for specific work tasks, and overall early Copilot for Microsoft 365 users were 29% faster in the series of tasks, like searching, writing, and summarizing. Two months in, we have seen faster adoption than either our E3 or E5 suites as enterprises, like Dentsu, Honda, Pfizer, all deploy Copilot to their employees, and we are expanding availability to organizations of all sizes. We're also seeing a Copilot ecosystem begin to emerge ISVs like Atlassian, Mural, and Trello, as well as customers like Air India, Bayer, and Siemens have all built plug-ins for specific lines of business that extend Copilot's capabilities.”

Our Methodology

To select stocks for this list, we used the FinViz stock screener to identify companies with high gross margins and net income. The Finance Charts database was then used to identify firms with the best net income growth in the past twenty years. The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2023. 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.

23 Most Profitable Stocks of the Last 20 Years
23 Most Profitable Stocks of the Last 20 Years

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Most Profitable Stocks of the Last 20 Years

23. Fair Isaac Corporation (NYSE:FICO)

Number of Hedge Fund Holders: 49 

Net Income: $452 Million

Fair Isaac Corporation (NYSE:FICO) develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions. On January 26, investment advisory Barclays maintained an Overweight rating on Fair Isaac Corporation (NYSE:FICO) stock and raised the price target to $1,500 from $1,234.

At the end of the fourth quarter of 2023, 49 hedge funds in the database of Insider Monkey held stakes worth $3 billion in Fair Isaac Corporation (NYSE:FICO), compared to 44 in the preceding quarter worth $2 billion.

In its Q4 2023 investor letter, Conestoga Capital Advisors, an asset management firm, highlighted a few stocks and Fair Isaac Corporation (NYSE:FICO) was one of them. Here is what the fund said:

“Fair Isaac Corporation (NYSE:FICO): FICO is a leader in predictive analytics and decision management software and is also the provider of FICO credit scores. FICO reported solid 4Q results, with revenue beating expectations, partially mitigated by a slight shortfall in EPS. Total revenue sustained low-double-digit growth in the quarter, with Scores up 12% year-over-year and Software up 11%. Software annual recurring revenue growth accelerated to 22% year-over-year in 4Q from 20% in 3Q. FICO also guided to double-digit revenue and EPS growth in fiscal year 2024.”

22. ANSYS, Inc. (NASDAQ:ANSS)

Number of Hedge Fund Holders: 44 

Net Income: $500 Million

ANSYS, Inc. (NASDAQ:ANSS) develops and markets engineering simulation software and services worldwide. On March 5, investment advisory Rosenblatt maintained a Neutral rating on ANSYS, Inc. (NASDAQ:ANSS) stock with a price target of $345.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in ANSYS, Inc. (NASDAQ:ANSS) with 585,625 shares worth more than $212 million.

In its Q4 2023 investor letter, Conestoga Capital Advisors, an asset management firm, highlighted a few stocks and ANSYS, Inc. (NASDAQ:ANSS) was one of them. Here is what the fund said:

“ANSYS, Inc. (NASDAQ:ANSS): ANSS is the gold standard in selling computer-aided engineering (CAE) software that allows engineers to simulate how product designs will behave in real world environments before they are manufactured. Shares rose sharply at the end of the year on rumors that it was in talks to be acquired by Synopsys (SNPS), a leader in electronic design automation (EDA) software.”

21. IDEXX Laboratories, Inc. (NASDAQ:IDXX)

Number of Hedge Fund Holders: 43

Net Income: $845 Million

IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. On February 6, investment advisory JPMorgan maintained an Overweight rating on IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock and raised the price target to $630 from $600. 

Among the hedge funds being tracked by Insider Monkey, London-based firm Fundsmith LLP is a leading shareholder in IDEXX Laboratories, Inc. (NASDAQ:IDXX) with 2.7 million shares worth more than $1.5 billion. 

In its Q4 2023 investor letter, Conestoga Capital Advisors, an asset management firm, highlighted a few stocks and IDEXX Laboratories, Inc. (NASDAQ:IDXX) was one of them. Here is what the fund said:

“IDEXX Laboratories, Inc. (NASDAQ:IDXX): IDXX is the industry leader in providing instruments (and consumables) used in diagnostics, detection, and information systems for veterinary, food, and water testing applications. Earnings for the quarter were mixed, as IDXX revenue came in lower than expected on weaker veterinary clinic traffic. However, pricing came in better than expected and shares rebounded after a significant drawdown from July highs.”

20. Roper Technologies, Inc. (NYSE:ROP)

Number of Hedge Fund Holders: 38

Net Income: $1.4 Billion

Roper Technologies, Inc. (NYSE:ROP) provides software, engineered products and solutions. On February 5, investment advisory Barclays maintained an Overweight rating on Roper Technologies, Inc. (NYSE:ROP) stock and raised the price target to $596 from $580.

At the end of the fourth quarter of 2023, 38 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Roper Technologies, Inc. (NYSE:ROP), compared to 42 in the previous quarter worth $2.4 billion.

19. Monster Beverage Corporation (NASDAQ:MNST)

Number of Hedge Fund Holders: 42   

Net Income: $1.6 Billion

Monster Beverage Corporation (NASDAQ:MNST) engages in the development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. On February 29, investment advisory Morgan Stanley maintained an Overweight rating on Monster Beverage Corporation (NASDAQ:MNST) stock and raised the price target to $68 from $63.

At the end of the fourth quarter of 2023, 42 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Monster Beverage Corporation (NASDAQ:MNST), the same as in the preceding quarter worth $1 billion.

18. Moody's Corporation (NYSE:MCO)

Number of Hedge Fund Holders: 56

Net Income: $1.6 Billion

Moody's Corporation (NYSE:MCO) operates as an integrated risk assessment firm worldwide. On February 14, investment advisory UBS maintained a Neutral rating on Moody's Corporation (NYSE:MCO) stock and raised the price target to $380 from $355. 

Among the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Moody's Corporation (NYSE:MCO) with 24 million shares worth more than $9.6 billion. 

In its Q3 2023 investor letter, L1 Capital, an asset management firm, highlighted a few stocks and Moody's Corporation (NYSE:MCO) was one of them. Here is what the fund said:

“Portfolio adjustments during the September 2023 quarter were modest, diversified, but meaningful. In total around 10% of the Fund was divested and reinvested into opportunities we consider provide a superior risk-adjusted base case return.

We continued to trim our investment in high-quality technology businesses such as Intuit, mentioned previously. These adjustments were purely for valuation considerations, rather than any business concerns and some of these companies remain significant portfolio holdings.

The Fund’s remaining investment in Moody’s Corporation (NYSE:MCO)’s was fully divested during the September quarter. Moody’s is the world’s leading credit rating, risk assessment and analytics business. The core credit ratings business is largely a duopoly with S&P Global, with modest competition from Fitch Ratings and regional competitors – a great example of our preferred ‘Noah’s Ark’ industry structure.

The share price of Moody’s has been volatile over recent times, often reacting too greatly to changes in short-term capital markets conditions. During the quarter we took advantage of positive market sentiment to divest our holding at a share price we considered to be above fair value. Moody’s is very well managed and ‘ticks all our boxes’ for one of the world’s highest-quality businesses. The company has moved from our Portfolio to our Bench of potential investments. Having a Bench of ‘ready to go’ investment opportunities is a core aspect of our investment process. We continue to analyse Moody’s as if we owned it and are excited by the pull-back in the share price from recent highs.”

17. Paychex, Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders: 32

Net Income: $1.7 Billion

Paychex, Inc. (NASDAQ:PAYX) is a New York-based company that provides human resource, payroll, and other services to businesses. In late December, investment advisory Stifel maintained a Hold rating on Paychex, Inc. (NASDAQ:PAYX) stock and raised the price target to $130 from $124.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group  is a leading shareholder in the firm with 2.3 million shares worth more than $281 million.

In its Q4 2023 investor letter, Ensemble Capital Management, an asset management firm, highlighted a few stocks and Paychex, Inc. (NASDAQ:PAYX) was one of them. Here is what the fund said:

“Paychex, Inc. (NASDAQ:PAYX) (3.71% weight in the Fund): While employment growth was strong in 2023, the Fed’s efforts to moderate job growth was successful. Paychex business is driven by the number of employees on the payrolls of its small to medium size business customers. With recession worries percolating all year, the stock was flat on a year to date basis in late October just as the economic outlook began to brighten. As recession worries faded the stock rallied to gains of as much as 13% in the fourth quarter. But in the late December earnings report, the company said that core payroll services growth would be a bit weaker than investors expected. Despite this, the company slightly raised full year earnings guidance as demand for their full service solution that incorporates human resources services beyond payroll improved. The stock finished the quarter up 4.1%.”

16. Public Storage (NYSE:PSA)

Number of Hedge Fund Holders: 28   

Net Income: $1.9 Billion

Public Storage (NYSE:PSA) is a real estate investment trust that owns and runs self-storage facilities. On March 7, investment advisory Jefferies maintained a Buy rating on Public Storage (NYSE:PSA) stock and raised the price target to $331 from $315.

At the end of the fourth quarter of 2023, 28 hedge funds in the database of Insider Monkey held stakes worth $678 million in Public Storage (NYSE:PSA), up from 24 in the preceding quarter worth $1.4 billion.

In its Q4 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Public Storage (NYSE:PSA)  was one of them. Here is what the fund said:

“In the most recently reported quarter, business results for Public Storage (NYSE:PSA), a REIT that is the world’s largest owner, operator, and developer of self-storage facilities, were mildly disappointing as occupancy trends and rents moderated as a result of less housing-related movement and a more price-sensitive consumer. We decided to sell our position because we believe near-term rent and overall cash-flow growth may remain subdued. We are likely to revisit Public Storage in the future.”

15. Simon Property Group, Inc. (NYSE:SPG)

Number of Hedge Fund Holders: 27

Net Income: $2.3 Billion

Simon Property Group, Inc. (NYSE:SPG) is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations. On February 28, investment advisory Evercore ISI maintained an Equal Weight rating on Simon Property Group, Inc. (NYSE:SPG) stock and raised the price target to $150 from $142.

At the end of the fourth quarter of 2023, 27 hedge funds in the database of Insider Monkey held stakes worth $320 million in Simon Property Group, Inc. (NYSE:SPG), the same as in the preceding quarter worth $240 million.

Just like Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Simon Property Group, Inc. (NYSE:SPG) is one of the most profitable stocks of the last 12 months.

In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Simon Property Group, Inc. (NYSE:SPG) was one of them. Here is what the fund said:

“Shares of rating agency and data provider S&P Global Inc. gave back some gains from earlier this year due to investor concerns that rising interest rates will weigh on future debt issuance and asset-based fees. Management also removed its 2026 revenue target for the ESG segment due to a more uncertain regulatory landscape and political climate. On a positive note, S&P Global reported strong second quarter financial results, with 7% adjusted revenue growth and 11% EPS growth as ratings issuance returned to growth for the first time in six quarters. Management maintained fullyear guidance as a more favorable outlook for the Ratings and Indices segments offset slower growth in the Market Intelligence segment. We continue to own the stock due to the company’s long runway for growth and significant competitive advantages.”

14. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 43 

Net Income: $2.3 Billion

Microchip Technology Incorporated (NASDAQ:MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. On February 2, investment advisory Needham maintained a Buy rating on Microchip Technology Incorporated (NASDAQ:MCHP) stock and raised the price target to $90 from $85.

Among the hedge funds being tracked by Insider Monkey, Sydney-based investment firm Platinum Asset Management is a leading shareholder in Microchip Technology Incorporated (NASDAQ:MCHP) with 1.5 million shares worth more than $141 million.

In its Q3 2023 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Microchip Technology Incorporated (NASDAQ:MCHP) was one of them. Here is what the fund said:

“We added a new position in Microchip Technology, Inc., (NASDAQ:MCHP) to the Fund during the quarter. Microchip is a leading provider of mixed signal microcontrollers and analog semiconductors to a broad range of industrial, data center, automotive, communication and consumer appliance customers. The company enjoys favorable product characteristics that help drive strong profitability, and it benefits from several long-wave demand tailwinds such as electronification, automation, and growth in data communications. While Microchip is not immune from semiconductor cycles, its cash flows have been durable through cycles. The multi-year outlook is solid, and we think the company is poised to further boost per-share value growth through increasing share repurchases at discounted prices.”

13. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 55      

Net Income: $2.7 Billion

KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. On March 5, investment advisory UBS maintained a Neutral rating on KLA Corporation (NASDAQ:KLAC) stock and raised the price target to $760 from $605.

At the end of the fourth quarter of 2023, 55 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in KLA Corporation (NASDAQ:KLAC), compared to 49 in the previous quarter worth $1.4 billion.

12. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 62  

Net Income: $2.8 Billion

Analog Devices, Inc. (NASDAQ:ADI) makes and sells semiconductor products. It operates from Massachusetts. On March 4, investment advisory Cantor Fitzgerald maintained a Neutral rating on Analog Devices, Inc. (NASDAQ:ADI) stock with a price target of $205. 

At the end of the fourth quarter of 2023, 62 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Analog Devices, Inc. (NASDAQ:ADI), compared to 64 the preceding quarter worth $4.5 billion.

In its Q4 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and Analog Devices, Inc. (NASDAQ:ADI) was one of them. Here is what the fund said: 

“In the semiconductor industry, demand is closely tied to the economic cycle, and industry order patterns are magnified by its complex supply chain. Furthermore, it’s a capital and technology intensive industry, resulting in frequent overcapacity and product obsolescence. For these reasons, we shied away from any investment in the industry for many years. However, several years ago, we felt that segments of the industry had developed strong enough moats to merit investment under the right conditions. We made one investment (Analog Devices, Inc. (NASDAQ:ADI) in Large Cap) that we thought was compelling, but it wasn’t until late 2021 when the semiconductor industry entered a severe downturn, that we began purchasing semiconductor stocks in earnest. Our view on the cycle risk was simple – the long-term growth outlook was tremendous given the proliferation of electronics and software in everyday objects, and the downturn had already begun, and a healthy amount of it was known. We ignored the near-term outlook for profits, assuming they would be down substantially. It turned out that the downturn was more severe than most other investors or industry observers had forecasted. Thus, semiconductor stocks in general remain depressed, and our investments have so far shown mixed results.

However, we have not changed our view on the long-term attractiveness of the industry segments in which they operate, nor on the normalized earning power of these companies five to ten years out. Thus, we have been consistently adding to our exposure for the past two years, which, in addition to Analog Devices, now includes Microchip Technology (Mid Cap), MKS Instruments (Mid Cap), and Texas Instruments (Large Cap), the last of which was a new purchase in 2023. Each of these has wide and deep moats, top-notch management teams, and strong secular growth prospects. We expect our investments here to ultimately work out for us, but they are examples of how unpredictable, cyclical factors can overwhelm other factors in the short term.”

11. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 62

Net Income: $3.6 Billion

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotech firm that develops therapies for the treatment of cystic fibrosis. On February 20, investment advisory Cantor Fitzgerald maintained an Overweight rating on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock with a price target of $440. 

At the end of the fourth quarter of 2023, 62 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), compared to 57 in the previous quarter worth $1.5 billion.

In addition to Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the most profitable stocks of the last 12 months. 

In its Q4 2023 investor letter, Aristotle Atlantic Partners, an asset management firm, highlighted a few stocks and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was one of them. Here is what the fund said:

“Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) develops drugs for treating cystic fibrosis, cancer, inflammatory bowel, autoimmune disease and neurological disorders. The biotechnology company has four commercial drugs used to treat cystic fibrosis. Vertex has other drugs in development, including additional cystic fibrosis treatments and medications addressing sickle cell disease, beta thalassemia, alpha-1 antitrypsin deficiency and pain.

Vertex is the global leader in treating cystic fibrosis and has additionally built a robust pipeline in several therapeutic areas. Late-stage studies in acute and neuropathic pain are expected to be another catalyst for the company. We believe Vertex’s valuation is attractive and at a discount relative to their 5-year historical average. Additionally, the company is well capitalized, with roughly $12.5 billion in net cash on its balance sheet.”

10. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 59   

Net Income: $3.9 Billion

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. On February 27, investment advisory RBC Capital maintained an Outperform rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock and raised the price target to $1,184 from $1,096.

At the end of the fourth quarter of 2023, 59 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), compared to 50 in the preceding quarter worth $1.7 billion.

9. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 55 

Net Income: $5.6 Billion

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines. On March 4, investment advisory Wells Fargo maintained an Equal Weight rating on Gilead Sciences, Inc. (NASDAQ:GILD) stock and lowered the price target to $77 from $84.

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Gilead Sciences, Inc. (NASDAQ:GILD) with 3.8 million shares worth more than $312 million.

In its Q4 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Gilead Sciences, Inc. (NASDAQ:GILD) was one of them. Here is what the fund said:

“In the second half of 2023 — as we were selling low-growth, high-multiple stocks and taking advantage of oversold conditions in infrastructure, real estate and utilities — we also found opportunities in overlooked areas of health care. After adding Gilead Sciences, Inc. (NASDAQ:GILD) in the third quarter, we bought AstraZeneca in the fourth quarter. Each of these stocks present distinct investment cases, but both are reasonably valued and have limited patent expiry or pipeline risk. Gilead’s strength comes from its dominant franchise in HIV. It offers lower growth, but it yields nearly 4% and trades at 11x earnings. AstraZeneca possesses a diversified portfolio of pharmaceuticals, which should deliver double-digit earnings growth, yet it trades at just 16x earnings. These stocks were underwritten individually, but collectively we like the idea of increasing our exposure to defensive and growing health care names at below-market multiples.”

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 55 

Net Income: $6.5 Billion

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. On March 4, investment advisory Cantor Fitzgerald maintained a Neutral rating on Texas Instruments Incorporated (NASDAQ:TXN) stock with a price target of $170.

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Citadel Investment Group is a leading shareholder in Texas Instruments Incorporated (NASDAQ:TXN) with 2.7 million shares worth more than $461 million.

7. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 42

Net Income: $8.1 Billion

Altria Group, Inc. (NYSE:MO) manufactures and sells smokable and oral tobacco products in the United States. At the end of the fourth quarter of 2023, 42 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Altria Group, Inc. (NYSE:MO), compared to 40 the preceding quarter worth $565 million.

6. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 60

Net Income: $13.4 Billion

Cisco Systems, Inc. (NASDAQ:CSCO) makes and sells networking and other products. On February 15, investment advisory Barclays maintained an Equal Weight rating on Cisco Systems, Inc. (NASDAQ:CSCO) stock and raised the price target to $48 from $46.

At the end of the fourth quarter of 2023, 60 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Cisco Systems, Inc. (NASDAQ:CSCO), compared to 64 in the previous quarter worth $1.6 billion.

Here is what Oakmark Funds has to say about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:

“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”

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Disclosure. None. 23 Most Profitable Stocks of the Last 12 Months is originally published on Insider Monkey.