In this article, we discuss 10 best fast money stocks to buy according to hedge funds. If you want to read about some more fast money stocks, go directly to 5 Best Fast Money Stocks To Buy According To Hedge Funds.
Raging inflation and high interest rates continue to weigh on consumer spending in the past few months, raising investor concerns around an economic recession in the United States that could slow down global growth. Final estimates from the US Bureau of Economic Analysis reveal that the US economy shrank for the second consecutive quarter in the three months ended June, meeting the technical criteria for a recession. The GDP shrank by 0.6% on an annualized basis in the second quarter, below the initially reported 0.9% decline.
The numbers indicate that storm clouds are likely to hover over the marketplace in the coming months. However, not all is doom and gloom. Newly released job data shows that payrolls increased 275,000 in September, while the unemployment rate held at 3.7%. Per a recent survey, top US economists expect average hourly earnings to increase 0.3% month-over-month in September, compared to 5.1% from a year ago. The latter number is below the figures estimated for the month of August.
In this macro environment, investors are eagerly looking for stocks that offer a healthier risk/reward ratio in the near-term, primarily because investments in traditional growth offerings are a no-go. Some of the best stocks to monitor in this regard include Microsoft Corporation (NASDAQ:MSFT), The Walt Disney Company (NYSE:DIS), and Humana Inc. (NYSE:HUM), among others discussed in detail below. As policymakers try to beat inflation, these options could offer investors access to fast money.
Our Methodology
The companies that have upcoming growth catalysts were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Fast Money Stocks To Buy According To Hedge Funds
10. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 37
LyondellBasell Industries N.V. (NYSE:LYB) operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. It is one of the best fast money stocks to invest in. The company has grappled with declining prices from commodity chemicals and lower volumes in the past few months. However, the attractive yield and dividend history offers investors some much-needed solidity as the market environment becomes more volatile.
On September 16, Deutsche Bank analyst David Begleiter maintained a Hold rating on LyondellBasell Industries N.V. (NYSE:LYB) stock and lowered the price target to $85 from $92, noting that the company was seeing weaknesses across core segments driven by higher costs.
At the end of the second quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $953.5 million in LyondellBasell Industries N.V. (NYSE:LYB), compared to 32 in the previous quarter worth $744 million.
Just like Microsoft Corporation (NASDAQ:MSFT), The Walt Disney Company (NYSE:DIS), and Humana Inc. (NYSE:HUM), LyondellBasell Industries N.V. (NYSE:LYB) is one of the best fast money stocks to buy now according to hedge funds.
In its Q3 2021 investor letter, Miller Howard Investments, an asset management firm, highlighted a few stocks and LyondellBasell Industries N.V. (NYSE:LYB) was one of them. Here is what the fund said:
“We initiated a position in LyondellBasell (LYB). Chemical markets are currently robust given the combination of 2020 plant shutdowns and strongly recovering demand. Despite the tailwinds, Lyondell trades at a low valuation and yields just under 5%.”
9. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 42
Las Vegas Sands Corp. (NYSE:LVS), together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. It is one of the top fast money stocks to invest in. The stock has climbed in the past few weeks on the back of reports that the firm is the frontrunner to operate in the home of the Mets. Steve Cohen, the owner of the Mets, is engaging city officials and casino owners to discuss the options to open a casino in Citi Field. The shares have also benefited from easing of virus restrictions across the globe.
On September 26, Citi analyst George Choi maintained a Buy rating on Las Vegas Sands Corp. (NYSE:LVS) stock and raised the price target to $60 from $58, highlighting the resumption of Macau-bound e-visas as a positive surprise.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Las Vegas Sands Corp. (NYSE:LVS), with 4.1 million shares worth more than $138.6 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Las Vegas Sands Corp. (NYSE:LVS) was one of them. Here is what the fund said:
“Certain travel-related businesses remain cyclically depressed not secularly challenged and should rebound as economic strength re-emerges. For example, the business operations of Macau-centric casino and gaming companies such as Las Vegas Sands Corporation (NYSE:LVS) have yet to recover due to the ongoing COVID-19 challenges in China. We expect business to rebound sharply when economic growth recovers just as it did in Las Vegas. Las Vegas Sands Corporationis a global leader in the development and operation of luxury casino resorts in Macau and Singapore, and it maintains a liquid and investment grade balance sheet. It is currently valued at a significant discount to our assessment of replacement cost, and the company’s Macau operations are valued at only 7 times estimated cash flow.”
8. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 42
Archer-Daniels-Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients. It is one of the elite fast money stocks to invest in. On August 17, the company announced that it had partnered with animal free dairy company, New Culture, to increase the development and commercialization of alternative dairy products. Under the deal, New Culture will also gain access to a range of plant-based ingredients and flavors offered by the former.
On August 12, Wolfe Research analyst Sam Margolin initiated coverage of Archer Daniels-Midland Company (NYSE:ADM) with an Outperform rating and a $117 price target, noting that the nutrition section for the firm alone provides very competitive dividend growth.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Markel Gayner Asset Management is a leading shareholder in Archer-Daniels-Midland Company (NYSE:ADM), with 1.5 million shares worth more than $113.6 million.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Archer-Daniels-Midland Company (NYSE:ADM) was one of them. Here is what the fund said:
“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”
7. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 44
Constellation Brands, Inc. (NYSE:STZ) produces, imports, markets, and sells beer, wine, and spirits. It is one of the premier fast money stocks to invest in. The shares have slid after President Obrador of Mexico announced that the Mexican government will no longer be granting new permits to beer production companies in the region. However, the firm remains well-positioned from a rise in demand for beverages as international travel resumes and the holiday season approaches.
On September 30, investment advisory Barclays maintained an Overweight rating on Constellation Brands, Inc. (NYSE:STZ) stock and lowered the price target to $272 from $284. Analyst Lauren Lieberman issued the ratings update.
At the end of the second quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $1.29 billion in Constellation Brands, Inc. (NYSE:STZ), compared to 41 in the preceding quarter worth $982 million
6. IQVIA Holdings Inc. (NYSE:IQV)
Number of Hedge Fund Holders: 53
IQVIA Holdings Inc. (NYSE:IQV) provides advanced analytics, technology solutions, and clinical research services to the life sciences industry. It is one of the most prominent fast money stocks to invest in. On July 21, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $2.44, beating estimates by $0.06. The revenue over the period was $3.44 billion, beating estimates by $50 million.
On August 24, Credit Suisse analyst Dan Leonard initiated coverage of IQVIA Holdings Inc. (NYSE:IQV) stock with an Outperform rating and a $300 price target, noting that the firm’s combined data and research assets will continue to drive industry-leading sales growth.
At the end of the second quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in IQVIA Holdings Inc. (NYSE:IQV), compared to 62 in the previous quarter worth $3.3 billion.
Alongside Microsoft Corporation (NASDAQ:MSFT), The Walt Disney Company (NYSE:DIS), and Humana Inc. (NYSE:HUM), IQVIA Holdings Inc. (NYSE:IQV) is one of the best fast money stocks to buy now according to hedge funds.
In its Q2 2022 investor letter, L1 Capital International, an asset management firm, highlighted a few stocks and IQVIA Holdings Inc. (NYSE:IQV) was one of them. Here is what the fund said:
“IQVIA Holdings Inc. (NYSE:IQV) is the leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry. Behind many of the breakthroughs in the treatment of COVID-19 you will find IQVIA. It is the largest contract research organisation (CRO) globally, planning and managing clinical trials as well as reporting on safety and efficacy in the real world following regulatory approval. IQVIA is not the life science industry gold miner, but rather provides the ‘picks and shovels’ to support others discover life sciences industry gold.
Few companies can compete with IQVIA – a proprietary database of over 1.2 billion non-identified patient records, a global healthcare IT network that receives and processes 100 billion healthcare records annually while ensuring privacy and security, combined with unique technology, data analytics and logistical capabilities managed by 80,000 employees in over 100 countries. IQVIA delivers information and insights on over 85% of the world’s pharmaceuticals, as measured by global sales. Disruption risk to this highly specialised but comprehensive network is limited (…read more)
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Disclosure. None. 10 Best Fast Money Stocks To Buy According To Hedge Funds is originally published on Insider Monkey.