Hedge Funds Are Selling Tech — I’m Buying These 3 Stocks

MSI is described as a premium compounder with an attractive setup based on its history, margin profile, and long-term earnings growth.

Service (NOW) is a high-quality tech business that has been punished by the market, presenting an opportunity due to its significant valuation reset and expected future PE compression.

MSCI is a favorite premium non-tech compounder, offering a high-quality financial data and index business at a more reasonable valuation than usual, with strong growth prospects.

Abbott Laboratories is a defensive healthcare stock with a significant valuation reset, offering a solid discount and higher dividend yield.

Moody's is a high-quality company with strong competitive advantages and an attractive valuation, offering a good margin of safety.

Visa is an elite business with strong fundamentals and growth, but its valuation has not reset enough to make it a top pick compared to other opportunities.

Lockheed Martin is a defensive name with different revenue drivers than consumer stocks, offering diversification, but its valuation is in line with historical averages.

PepsiCo's valuation has compressed, offering a more interesting yield and a margin of safety, but its weak growth profile prevents it from being a top pick.

McDonald's is a defensive, global brand that has been punished by the market, trading at a historical discount, but its growth rate may not justify the current valuation.

Koko Phillips is an interesting energy stock that offers cash flows, dividends, and commodity exposure, making it attractive in a rotating market, though its year-to-date performance is noted.

Next Era Energy is a good company with a positive long-term outlook, but its current price does not offer enough of a discount or margin of safety to be a top buy.