In this piece, we will take a look at the 10 industrial stocks to buy according to billionaire Ray Dalio. If you want to skip our brief introduction about Mr. Dalio and his investment firm and jump ahead to the top five stocks in this list, then head on over to 5 Industrial Stocks To Buy According To Billionaire Ray Dalio.
Ray Dalio is the man behind Bridgewater Associates, one of the largest hedge funds in the world. His career spans decades spent in the financial industry. According to Forbes Magazine, Mr. Dalio was worth a whopping $20 billion as of December 2021.
His hedge fund, Bridgewater Associates, is headquartered in Westport, Connecticut, United States. It offers three products to its clients, which are the Pure Alpha Fund, the All Weather Fund, and the Pure Alpha Major Markets Fund.
The fund has an investment fee of $500,000 for its All Weather Fund and the fee for the other two runs into millions of dollars.
Dalio founded Bridgewater in 1975, prior to which he also spent his time at various other funds and banks. The executive is also known for bringing the colorful image of Wall Street in the consumer’s mind, as he longed to bring the freedom of college life to the financial world during the time he spent at the investment firm Shearson Hayden Stone. Mr. Dalio received his bachelor’s from Long Island University and would continue to trade stocks during his time in college, becoming interested in the commodities market due to its low funding requirements. After his undergraduate degree, Dalio would go on to attend the Harvard Business School for his Master’s in Business Administration.
Bridgewater Associates has a portfolio that was worth $18 billion as of the third quarter of this year. The fund’s annualized returns for the past 28 years stand at 11.5%. Some of the popular companies that it has invested in include Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and PepsiCo, Inc. (NASDAQ:PEP).
Our Methodology
For determining Mr. Dalio’s top industrial investments, we sifted through his firm’s 13-F filings for Q3 2021, which consist of hundreds of different companies. Once this laborious process was finished, we took a look at the identified firms’ analyst coverage, quarterly reports, investor letters, largest shareholders, and hedge fund sentiment gathered through Insider Monkey’s survey of 867 funds’ holdings for Q3 2021. This enabled us to form a holistic view of the companies.
With this context in mind, let’s now discuss our list of the 10 industrial stocks to buy according to billionaire Ray Dalio.
Industrial Stocks To Buy According To Billionaire Ray Dalio
10. Mohawk Industries, Inc. (NYSE:MHK)
Bridgewater Associates’ Stake Value: $18.3 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 38
Mohawk Industries, Inc. (NYSE:MHK) is an American flooring products provider which caters to both residential and corporate customers. Some of the products that it provides the construction industry include ceramic flooring products.
Mr. Dalio’s Bridgewater Associates owned 103,630 Mohawk Industries, Inc. (NYSE:MHK) shares worth $18.3 million and represented 0.1% of its multi-billion-dollar portfolio as of Q3 2021. During the same time period, 38 of 867 hedge funds polled by Insider Monkey owned a stake in the flooring firm.
Mohawk Industries, Inc. (NYSE:MHK) brought in $2.8 billion in revenue and $3.95 in non-GAAP EPS in its fiscal Q3, beating analyst estimates for EPS only. BofA set a $174 price target for the company in November 2021, stating that the company was operating at full capacity.
Mohawk Industries, Inc. (NYSE:MHK)’s largest investor is Richard S. Pzena’s Pzena Investment Management who owns 1.5 million shares worth $282 million.
Mohawk Industries, Inc. (NYSE:MHK) joins The Coca-Cola Company (NYSE:KO), Walmart Inc. (NYSE:WMT), and PepsiCo, Inc. (NASDAQ:PEP) in the list of Mr. Dalio’s favorite stocks.
9. Celanese Corporation (NYSE:CE)
Bridgewater Associates’ Stake Value: $25 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 26
Celanese Corporation (NYSE:CE) is one of the largest chemical companies in the world, which focuses on manufacturing and selling acetic acid and vinyl acetate to industrial customers. Its customers cover several industries such as automotive, painting, coating, and telecommunications.
Celanese Corporation (NYSE:CE) earned $2.2 billion in revenue and $4.82 in non-GAAP EPS for its Q3, beating analyst estimates for both. Its price target was raised to $200 from $190 by BMO Capital in October 2021, which highlighted that the company posted strong earnings results and future guidance.
Bridgewater Associates held 168,739 Celanese Corporation (NYSE:CE) shares during the third quarter of this year. These were worth $25 million and represented 0.13% of its portfolio. An Insider Monkey survey of 867 hedge funds for Q3 2021 revealed that 26 had bought the company’s shares.
Celanese Corporation (NYSE:CE)’s largest investor is Brandon Haley’s Holocene Advisors who owns 1.5 million shares worth $227 million.
8. Pool Corporation (NASDAQ:POOL)
Bridgewater Associates’ Stake Value: $25.6 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 40
Pool Corporation (NASDAQ:POOL) is an American company that provides swimming pool equipment and parts alongside other outdoor living products. It is a wholesale distributor whose customers also include builders, service companies, and contractors for the agricultural industry.
As Q3 2021 came to an end, Mr. Dalio’s investment firm held 59,057 Pool Corporation (NASDAQ:POOL) shares, which were worth $25.6 million and represented 0.14% of its portfolio. During the same time period, 40 of the 867 hedge funds polled by Insider Monkey had holdings in the company.
Pool Corporation (NASDAQ:POOL)’s largest shareholder is Robert Joseph Caruso’s Select Equity Group who owns 887,636 shares worth $385 million.
In its third fiscal quarter, Pool Corporation (NASDAQ:POOL) brought in $1.4 billion in revenue and $4.44 in non-GAAP EPS, beating analyst estimates for both. In an October 2021 analyst note, Loop Capital raised the company’s price target to $540 from $485, highlighting that the earning beat reflects strong foundational business strengths.
In addition to PepsiCo, Inc. (NASDAQ:PEP), The Coca-Cola Company (NYSE:KO) and Walmart Inc. (NYSE:WMT), Pool Corporation (NASDAQ:POOL) is one of Ray Dalio’s top stock picks.
Wasatch Core Growth Fund mentioned Pool Corporation (NASDAQ:POOL) in its Q2 2021 investor letter, outlining that:
“The top contributor to Fund performance for the second quarter was Pool Corp. (POOL), a wholesale distributor of swimming pools and related supplies. The company’s customers include more than 120,000 contractors and retailers. Pool offers approximately 200,000 national-brand and private-label products from more than 2,000 suppliers. We think the company has done an impressive job of positioning itself as a centralized, one-stop resource for pool-related needs ranging from initial construction through maintenance and refurbishment. The prevalence of stay-athome orders during the pandemic led many consumers to seek alternative outdoor activities, and Pool enjoyed a record year in 2020. While some investors had been concerned growth would slow in 2021, that hasn’t been the case. In fact, growth has accelerated. And the stock price now reflects the improved fundamentals. On the technology front, Pool has introduced a mobile app that allows customers to order supplies for expedited pickup and delivery.”
7. Genuine Parts Company (NYSE:GPC)
Bridgewater Associates’ Stake Value: $25.8 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 28
Genuine Parts Company (NYSE:GPC) is a provider of automotive and industrial replacement parts alongside office products and electronic materials. It is headquartered in Atlanta, Georgia, United States.
Bridgewater Associates owned 213,006 Genuine Parts Company (NYSE:GPC) shares during the third quarter of this year. This stake was worth $25.8 million and represented 0.14% of its portfolio. 28 of the 867 hedge funds polled by Insider Monkey for the same time period had holdings in the firm.
Genuine Parts Company (NYSE:GPC) earned $4.8 billion in revenue and non-GAAP EPS of $1.88 in its third quarter, beating analyst estimates for both. Goldman Sachs raised the company’s price target from $113 to $125 in a May 2021 analyst note, outlining that economic recovery will spell well for the company.
Genuine Parts Company (NYSE:GPC)’s largest investor is Mario Gabelli’s GAMCO Investors who own 766,023 shares worth $92 million.
In its Q1 2021 investor letter, Amana Mutual Funds Trust mentioned the firm, outlining that:
“Genuine Parts presents something of a conundrum. As a supplier of replacement automotive parts, the decline in new car sales would be good. On the other hand, people aren’t driving nearly as much.”
6. The Clorox Company (NYSE:CLX)
Bridgewater Associates’ Stake Value: $38.9 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 34
The Clorox Company (NYSE:CLX) provides bleaches and cleaning products to commercial enterprises and everyday consumers. It is headquartered in Oakland, California, and is known for several brands which also target other industries such as cosmetics.
For its first fiscal quarter, The Clorox Company (NYSE:CLX) brought in $1.8 billion in revenue and $1.21 in non-GAAP EPS, beating analyst estimates for both. Its price target was lowered to $131 from $138 by Barclays in November 2021, who outlined that the chemical company revealed surprising cash flow problems in its earnings.
During the third quarter of this year, Mr. Dalio’s Bridgewater Associates held 235,070 The Clorox Company (NYSE:CLX) shares which were worth $38.9 million and constituted 0.21% of its portfolio. A survey of 867 hedge funds for the same time period conducted by Insider Monkey revealed that 34 had holdings in the company.
The Clorox Company (NYSE:CLX)’s largest investor is Andy Brown’s Cedar Rock Capital who owns 1.6 million shares worth $268 million.
Alongside PepsiCo, Inc. (NASDAQ:PEP), The Coca-Cola Company (NYSE:KO), and Walmart Inc. (NYSE:WMT), The Clorox Company (NYSE:CLX) is one of Ray Dalio’s hot stocks.
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Disclosure. None. 10 Industrial Stocks To Buy According To Billionaire Ray Dalio is originally published on Insider Monkey.
