In this article, we discuss 10 best stocks to buy now according to billionaire David Harding. If you want to skip to the top 5 holdings of the billionaire, click 5 Best Stocks to Buy Now According to Billionaire David Harding.
David Harding founded Winton Capital Management in 1997, which is a London-based quantitative hedge fund that uses statistical and mathematical approaches to navigate global financial markets. Harding prefers empirical scientific research and quantitative figures to create sound investment strategies that beat the stock market.
Amid the COVID-19 crisis of 2020, David Harding’s Winton Capital Management was one of the biggest hedge fund casualties on Wall Street. The fund held assets under management worth roughly $33.7 billion at the close of 2015, which sharply declined to $7.3 billion by the end of 2020. Despite acknowledging the disappointing turn that his once thriving hedge fund took in the pandemic years, David Harding remains confident in his strategy and has a positive outlook for the longer term.
As of Q4 2021, Winton Capital Management’s portfolio was valued at $1.65 billion, compared to $1.78 billion in the prior quarter. Some of the top buys of the hedge fund were The Clorox Company (NYSE:CLX), The Procter & Gamble Company (NYSE:PG), and Colgate-Palmolive Company (NYSE:CL), while the fund sold out of Herbalife Nutrition Ltd. (NYSE:HLF), Airbnb, Inc. (NASDAQ:ABNB), and Twitter, Inc. (NYSE:TWTR), among others.
Some of the most distinguished stocks in the fourth quarter portfolio of David Harding’s Winton Capital Management include Microsoft Corporation (NASDAQ:MSFT), Netflix, Inc. (NASDAQ:NFLX), and Apple Inc. (NASDAQ:AAPL), among others discussed in detail below.
David Harding of Winton Capital Management
Our Methodology
We used the Q4 portfolio of David Harding’s Winton Capital Management for this analysis, ranking the list according to the hedge fund’s stake value in each holding.
Best Stocks to Buy Now According to Billionaire David Harding
10. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Winton Capital Management’s Stake Value: $12,213,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.73%
Number of Hedge Fund Holders: 37
DICK’S Sporting Goods, Inc. (NYSE:DKS) was incorporated in 1948 and is headquartered in Coraopolis, Pennsylvania. The company operates as a sporting goods retailer across the United States. DICK’S Sporting Goods, Inc. (NYSE:DKS) supplies fitness equipment, golf accessories, hunting and fishing gear, and athleisure apparel and footwear.
Securities filings for Q4 2021 reveal that David Harding’s hedge fund owns 106,205 shares of DICK’S Sporting Goods, Inc. (NYSE:DKS), worth $12.2 million, accounting for 0.73% of the 13F portfolio. The billionaire increased his stake in the firm by 1064% in the December quarter.
On March 16, DICK’S Sporting Goods, Inc. (NYSE:DKS) declared a $0.4875 per share quarterly dividend, an 11.4% increase from its prior dividend of $0.4375. The dividend was paid on March 25, to shareholders of record on March 18. The stock delivers a dividend yield of 1.80% as of April 12.
DICK’S Sporting Goods, Inc. (NYSE:DKS) reported earnings for the first quarter of 2022 on March 8, posting an EPS of $3.64, exceeding analysts’ estimates by $0.10. Revenue over the period jumped 7.26% year-over-year to $3.35 billion, outperforming market consensus by $42.12 million.
Barclays analyst Adrienne Yih on April 1 maintained an Overweight rating on DICK’S Sporting Goods, Inc. (NYSE:DKS) but lowered the firm’s price target on the shares to $134 from $147. The analyst downgraded the retail sector to Neutral, citing peak inflationary costs well ahead of uncertain demand. The analyst lowered price targets for the retail sector to reflect declining multiples due to increased operational risk.
According to Insider Monkey’s Q4 data, 37 hedge funds were bullish on DICK’S Sporting Goods, Inc. (NYSE:DKS), compared to 36 funds in the prior quarter. The total stakes held in Q4 amounted to $1.2 billion. Arrowstreet Capital owned the leading position in DICK’S Sporting Goods, Inc. (NYSE:DKS) at the end of December 2021, with 1.6 million shares worth $191 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Netflix, Inc. (NASDAQ:NFLX), and Apple Inc. (NASDAQ:AAPL), DICK’S Sporting Goods, Inc. (NYSE:DKS) is one of the most notable stock picks of David Harding.
9. Otis Worldwide Corporation (NYSE:OTIS)
Winton Capital Management’s Stake Value: $13,162,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.79%
Number of Hedge Fund Holders: 38
Otis Worldwide Corporation (NYSE:OTIS) is a Connecticut-based company that designs and installs elevators and escalators in the United States, China, and internationally. The company manufactures both freight and passenger elevators. David Harding boosted his stake in Otis Worldwide Corporation (NYSE:OTIS) by 5% in the fourth quarter of 2021, holding 151,160 shares worth $13.1 million.
On February 15, Otis Worldwide Corporation (NYSE:OTIS) declared a new share repurchase plan ranging between $300 million and $500 million. Net sales in Q4 of $3.57 billion increased 2.18% from the prior-year quarter, reflecting a 2.8% boost in organic sales. In 2022, Otis Worldwide Corporation (NYSE:OTIS) expects organic sales to increase by 2.5% to 4.5%, adjusted earnings per share of $3.20 to $3.30, and free cash flow of approximately $1.6 billion.
Otis Worldwide Corporation (NYSE:OTIS) announced on February 3 a $0.24 per share quarterly dividend, in line with previous. The dividend was paid on March 10, to shareholders of the company as of February 18. Otis Worldwide Corporation (NYSE:OTIS)’s dividend yield on April 12 stood at 1.26%.
According to the hedge funds tracked by Insider Monkey, Vinit Bodas’ Deccan Value Advisors held the largest stake in Otis Worldwide Corporation (NYSE:OTIS) at the end of the fourth quarter of 2021, with 4.40 million shares worth $383.50 million. Overall, 38 hedge funds were bullish on the stock at the end of December.
Here is what VGI Partners has to say about Otis Worldwide Corporation (NYSE:OTIS) in its Q4 2021 investor letter:
“We also exited some core holdings during the year. We sold our OTIS position, which has been a strong performer but decided to exit based on valuation coupled with a deteriorating outlook for construction in China. China represents almost 20% of OTIS revenue but an even higher proportion of future growth; in recent months we have started to see some of these concerns play out with multiple signs pointing to a prolonged slowdown in China property construction.”
8. Sanderson Farms, Inc. (NASDAQ:SAFM)
Winton Capital Management’s Stake Value: $13,791,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.83%
Number of Hedge Fund Holders: 33
Sanderson Farms, Inc. (NASDAQ:SAFM) is a poultry processing company that distributes fresh and frozen chicken products to retailers, distributors, and fast food operators in the United States. Increasing its stake in Sanderson Farms, Inc. (NASDAQ:SAFM) by 45% in Q4 2021, David Harding’s Winton Capital Management held 72,174 shares of the company, worth $13.7 million. The stock has consistently featured on Harding’s portfolio since Q3 2019.
Sanderson Farms, Inc. (NASDAQ:SAFM) posted its Q4 results on February 24, reporting earnings per share of $8.64, beating market consensus estimates by $2.66 million. The $1.33 billion revenue climbed 48% year-over-year, outperforming analysts’ forecasts by $60.51 million.
Among the hedge funds tracked by Insider Monkey, 33 hedge funds reported owning stakes in Sanderson Farms, Inc. (NASDAQ:SAFM) at the end of December 2021, up from 31 funds in the quarter earlier. Magnetar Capital held the largest stake in the company, with 792,575 shares worth $151.4 million.
7. Raymond James Financial, Inc. (NYSE:RJF)
Winton Capital Management’s Stake Value: $14,639,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.88%
Number of Hedge Fund Holders: 32
Raymond James Financial, Inc. (NYSE:RJF) is a Florida-based financial services company that serves individuals, enterprises, and municipalities in the United States, Canada, and Europe. The company specializes in retail and commercial banking, insurance, investment banking, mortgage loans, private equity, wealth management, and financial analysis.
According to Winton Capital Management’s 13F filings for Q4 2021, the hedge fund owned 145,804 Raymond James Financial, Inc. (NYSE:RJF) shares, valued at $14.6 million, representing 0.88% of the total securities for the period. David Harding’s fund increased its position in Raymond James Financial, Inc. (NYSE:RJF) by 16% in the fourth quarter.
On March 28, Raymond James Financial, Inc. (NYSE:RJF) announced acquisition plans for SumRidge Partners, a New Jersey-based fixed income trading company that deals in high yield and investment grade corporate bonds, municipal bonds, and institutional securities. The terms of the agreement have not been disclosed.
Citi analyst William Katz raised the price target on Raymond James Financial, Inc. (NYSE:RJF) to $210 from $165 and kept a Buy rating on the shares on March 28. The analyst also added Raymond James Financial, Inc. (NYSE:RJF) to Citi’s U.S. Focus List and opened a “90-Day Positive Catalyst Watch” on the shares. His upgraded fiscal 2023 earnings estimate is now 48% above consensus and the new 2024 projection is 36% higher than Wall Street estimates.
Glenn Greenberg’s Brave Warrior Capital is the biggest stakeholder of Raymond James Financial, Inc. (NYSE:RJF), with 2.2 million shares worth more than $224 million. Overall, the Q4 database of Insider Monkey suggests that 32 hedge funds were bullish on the stock, with collective stakes amounting to $1.20 billion.
6. CF Industries Holdings, Inc. (NYSE:CF)
Winton Capital Management’s Stake Value: $14,667,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.88%
Number of Hedge Fund Holders: 58
CF Industries Holdings, Inc. (NYSE:CF) is based in Deerfield, Illinois, operating as a manufacturer of hydrogen and nitrogen products for primarily the energy and fertilizer industries. David Harding, as of Q4 2021, owns 207,221 shares of CF Industries Holdings, Inc. (NYSE:CF), worth $14.6 million, representing 0.88% of the total 13F holdings. Harding’s hedge fund raised its CF Industries Holdings, Inc. (NYSE:CF) stake by 1158% during the fourth quarter.
In 2021, CF Industries Holdings, Inc. (NYSE:CF)’s full-year revenue came in at $6.5 billion, up from $4.1 billion in 2020, representing a year-over-year growth of 58.54%. Net income in 2021 also increased to $917 million from $317 million in 2020. The company’s cash and cash equivalents in 2021 stood at $1.6 billion, compared to $683 million in the prior year.
Scotiabank analyst Ben Isaacson downgraded CF Industries Holdings, Inc. (NYSE:CF) on March 28 to Sector Perform from Outperform but raised the price target on the shares to $118 from $81. The Russia/Ukraine conflict “remains the most influential factor to the outlook for fertilizer supply, trade-flow, and prices”, noted the analyst. From a risk-adjusted standpoint, Isaacson sees limited upside for fertilizer equities.
According to Insider Monkey’s Q4 data, 58 hedge funds placed long calls on CF Industries Holdings, Inc. (NYSE:CF), up from 49 funds in the earlier quarter. The total stakes owned in the fourth quarter amounted to $1.5 billion. Matthew Barrett’s Glendon Capital Management is the biggest position holder in the company, with 5.1 million shares worth $363.3 million.
Just like Microsoft Corporation (NASDAQ:MSFT), Netflix, Inc. (NASDAQ:NFLX), and Apple Inc. (NASDAQ:AAPL), CF Industries Holdings, Inc. (NYSE:CF) is a significant holding in David Harding’s Q4 portfolio.
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Disclosure: None. 10 Best Stocks to Buy Now According to Billionaire David Harding is originally published on Insider Monkey.
