In this article, we discuss the 10 back-to-work stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Back-to-Work Stocks to Buy Now.
Vaccine penetration and a quantifiable lull in new cases of COVID-19 across the world in the second half of this year had led to renewed hopes of the reopening of office spaces and a return to normal for the economy. However, office stocks have taken a minor beating in the past few days as a new variant of the virus rises. The World Health Organization has sought to calm fears regarding the new variant, with most experts confident that a vaccine that is effective against it will soon be found, based on experimental data from drug giants.
Investors can take advantage of this blip in office stocks to pick them up at relatively cheaper rates as the market panics. In addition to companies like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), other work-related stocks, especially those that stand to benefit from the back-to-work trend, are discussed in detail below. Office stocks were up around 25% year-to-date before the virus fears struck again.
New office demand had peaked earlier this year, driving a rally in real estate stocks that deal in workplaces. According to a report by news platform CNBC, new office demand was up 444% in August based on vaccinations and a drop in new virus cases, leading to greater optimism about the post-pandemic recovery. Industries that support workplaces, like transport, furniture, and human resource management, have also registered impressive gains.
Our Methodology
We chose some of the notable stocks that could benefit from the broader office opening and back to work trend in the world. These were picked based on business fundamentals and analyst ratings. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Photo by Austin Distel on Unsplash
Back-to-Work Stocks to Buy Now
10. HNI Corporation (NYSE:HNI)
Number of Hedge Fund Holders: 12
HNI Corporation (NYSE:HNI) makes and sells office services and supplies. The reopening of workplaces has created fresh demand for new office furniture, resulting in a slew of new orders for the company in the past few months.
HNI Corporation (NYSE:HNI) has a decent dividend history and recently declared a quarterly dividend of $0.31 per share, in line with previous. The forward yield was 0.37%. The company has a market cap of $1.7 billion.
At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $28 million in HNI Corporation (NYSE:HNI).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in HNI Corporation (NYSE:HNI) with 221,122 shares worth more than $8.1 million.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), HNI Corporation (NYSE:HNI) is one of the stocks on the radar of elite investors.
9. Insperity, Inc. (NYSE:NSP)
Number of Hedge Fund Holders: 18
Insperity, Inc. (NYSE:NSP) provides human resources and business solutions. The stock has surged more than 47% year-to-date as the services of the company come in high demand following the normalization of the economy and the lifting of lockdowns.
Roth Capital analyst Jeff Martin recently raised the price target on Insperity, Inc. (NYSE:NSP) stock to $158 from $116 and kept a Buy rating on the shares, noting that the firm was poised for growth acceleration in the coming months.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Glenview Capital is a leading shareholder in Insperity, Inc. (NYSE:NSP) with 511,258 shares worth more than $56 million.
At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $211 million in Insperity, Inc. (NYSE:NSP).
8. Boston Properties, Inc. (NYSE:BXP)
Number of Hedge Fund Holders: 21
Boston Properties, Inc. (NYSE:BXP) is a real estate investment trust that focuses on office properties. The reopening of workplaces has benefited the stock as property demand rises and prices creep upwards.
In September, Barclays analyst Anthony Powell initiated coverage of Boston Properties, Inc. (NYSE:BXP) stock with an Overweight rating and a price target of $134, underlining that the demand for warehouse spacing remained strong.
Among the hedge funds being tracked by Insider Monkey, London-based firm TCI Fund Management is a leading shareholder in Boston Properties, Inc. (NYSE:BXP) with 12.9 million shares worth more than $1.4 billion.
At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Boston Properties, Inc. (NYSE:BXP), up from 19 in the preceding quarter worth $1.3 billion.
7. CBRE Group, Inc. (NYSE:CBRE)
Number of Hedge Fund Holders: 37
CBRE Group, Inc. (NYSE:CBRE) provides commercial real estate services. With lockdowns and social restrictions lifted, life is returning to public spaces again and commercial properties are staging a comeback. CBRE is a direct beneficiary of this trend.
Keefe Bruyette analyst Jade Rahmani recently upgraded CBRE Group, Inc. (NYSE:CBRE) stock to Outperform from Market Perform with a price target of $115, noting that the business of the firm was the “best-in-class”.
At the end of the third quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $3 billion in CBRE Group, Inc. (NYSE:CBRE), the same as in the previous quarter worth $2.6 billion.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CBRE Group, Inc. (NYSE:CBRE) with 10.2 million shares worth more than $1 billion.
In its Q1 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and CBRE Group, Inc. (NYSE:CBRE) was one of them. Here is what the fund said:
“CBRE Group, Inc. (the largest commercial real estate services firm globally with leading brokerage, facilities management, consulting, and asset management offerings) revealing that it had agreed to acquire a 35% stake in Industrious—one of the largest networks of coworking and private office spaces in North America. Alongside the investment, CBRE’s management team (headed by CEO Bob Sulentic) has created a unique structure whereby it will also contribute its existing shared workspace portfolio (i.e., Hana) thus positioning the combined platform to take significant market share in the rapidly expanding “flexible workplace” market given CBRE’s reach (the company operates in more than 100 countries and counts 90% of Fortune 100 companies as clients) and a coworking model that could be viewed more favorably by property owners (e.g., revenue share agreements in lieu of fixed-cost leases through special purpose vehicles).”
6. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 39
Southwest Airlines Co. (NYSE:LUV) is a passenger airline firm based in Texas. After a torrid 2020, business travel is slowly inching back towards normal. This has resulted in increased business for Southwest in the past few months.
On November 19, investment advisory Wolfe Research upgraded Southwest Airlines Co. (NYSE:LUV) stock to Outperform from Peer Perform. Hunter Keay, an analyst at the advisory, issued the ratings update.
At the end of the third quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $729 million in Southwest Airlines Co. (NYSE:LUV).
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Southwest Airlines Co. (NYSE:LUV) with 2 million shares worth more than $103 million.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Southwest Airlines Co. (NYSE:LUV) is one of the stocks that hedge funds are buying.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Southwest Airlines Co. (NYSE:LUV) was one of them. Here is what the fund said:
“One of our goals as we constantly monitor the portfolio is to see if we can better deploy capital by lowering the probability of being wrong. This motivation drove our swap of Delta Airlines into Southwest Airlines during the quarter. We expect a huge rebound in airline traffic as COVID-19 concerns abate, but we are much more comfortable that it will be led by leisure travel. Conversely, we are more uncertain of the ultimate level and timing of business travel demand. Southwest, with its simple fare strategy and high leisure travel exposure, is better positioned to capture the ongoing traffic rebound without having to answer the business travel demand question on which Delta is more dependent. As a result, we expect Southwest to play serious offense as it gains share in the rebounding travel market and can fully leverage the massive pent-up demand for travel that we expect. In addition, the U.S. lead in vaccination over Europe favors Southwest over Delta, given the domestic focus of Southwest. COVID-19 has changed many things, but humans by their very nature like to move, and many of them will do it on Southwest.”
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Disclosure. None. 10 Back-to-Work Stocks to Buy Now is originally published on Insider Monkey.
