10 Best Stocks to Buy According to Eminence Capital’s Ricky Sandler

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1. Zillow Group, Inc. (NASDAQ:Z) CALL

Number of Hedge Fund Holders: 60

Eminence Capital’s Stake: $366,508,530

Zillow Group, Inc. (NASDAQ:Z) is a digital real estate firm. One of the reasons why Sandler has doubled down on his bullish bet on the firm is that the shares have lost nearly 25% in value over the past few months, creating a buying opportunity for long term bulls. Even as the stock dips, the underlying numbers for the firm remain strong. For example, the rentals business of the firm is growing at a healthy 30% year-over-year. The business is operating in a total addressable market of over $25 billion. The adjusted earnings of the firm are also growing at an impressive 20%, highlighting the health of the stock even amid a sell-off.

Latest 13F filings show that Eminence Capital held over 7.5 million shares of Zillow Group, Inc. (NASDAQ:Z) at the end of the first quarter of 2024 worth more than $366 million, representing 5.19% of the portfolio. Sandler increased the fund’s stake in the firm by nearly 120% in the first quarter of 2024, compared to the preceding quarter. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Zillow Group, Inc. (NASDAQ:Z) with 4.3 million shares worth more than $10 million.

While we acknowledge the potential of Zillow Group, Inc. (NASDAQ:Z) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Citigroup but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 13 High Growth Semiconductor Stocks That Are Profitable in 2024 and the 11 Best AI Penny Stocks to Invest in Now.

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