Find Investing Inspiration With These Strong Hedge Fund Stocks

We have searched the market and pulled up a list of eight stocks. And from these eight we limited the list to three of the most interesting stock ideas. Now let’s explore these three stocks a bit further:

Alibaba (BABA)– this rapidly expanding Chinese e-commerce stock ticks all the boxes. We can see from this chart below that BABA has a strong buy sentiment from Wall Street analysts, bloggers and hedge fund managers. No insider transactions have been recorded on BABA.

 

Alibaba has just revealed guidance for an incredible 45-49% this year- which suggests $34.3 billion of sales. Hedge fund titans getting in on the action include Steve Mandel with a $1.07 billion position. Mandel runs the $19 billion Lone Pine Capital fund which has delivered investors a sweet return of close to 18% on a three-year annualized basis.

ExxonMobil (XOM)– although analysts have a muted outlook on this oil and gas giant (the analyst consensus rating is moderate buy) hedge funds are much more bullish than the Street. In the last quarter hedge funds, including Ken Fisher’s Fisher Asset Management, actually increased holdings in Exxon by a net total of 2.8 million shares.

 

Shares in Exxon are relatively weak at the moment on Street concerns that the stock’s valuation is stretched and forced climate change disclosures. However, it would seem that fund managers have interpreted these low prices as a buying opportunity. XOM is now trading at $81 vs $93 in December 2016.

Visa (V)– the credits card company is flourishing. Shares have been rising steadily, and analysts are predicting even further upside for the stock of 7% from the current $96 share price over the next 12 months. Five-star Barclays analyst Darin Peller even told investors that shares look historically undervalued and should meaningfully outperform for the rest of 2017. His price target on the stock translates into 7% upside from the current share price.

On the fund front, multiple managers added to their Visa position in Q1, including Akre Capital Management’s Chuck Akre who is actually the 5th top fund manager on TipRanks due to the portfolio’s average return of 23% over the last three years (annualized basis).

 

Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.