In this article, we will take a look at the 10 stocks to buy now according to Peter Stamos’ Stamos Capital. You can skip our detailed analysis of Stamos’ history, investment philosophy, and hedge fund performance, and go directly to the 5 Stocks To Buy Now According To Stamos Capital.
Peter S. Stamos serves as the chief executive officer and chief investment officer at the California-based investment management firm, Stamos Capital Partners. He earned his B.A in Economics and Political Science from Stanford University, his JD from Harvard Law School and his Ph.D. from Oxford University. Prior to founding to Stamos Capital, he taught Economics at Harvard University. Later on, he served as the chief executive officer of Stamos Associates Inc. (SAI), and as a management consultant with Booz Allen & Hamilton and McKinsey & Company.
Stamos Capital Partners oversees more than $189.7 million in its portfolio. According to the Q2 13F filings, Stamos Capital Partners’ portfolio branches out into 8 distinct sectors, with the Energy sector dominating, making up 14.1% of the fund’s total portfolio value.
Some of the top stocks present in Stamos Capital’s investment portfolio by the end of the second quarter of 2021 include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Bank of America Corporation (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM), among others discussed in detail below.
Our Methodology
With this background in mind, let us now look towards the 10 stocks to buy now according to Stamos Capital. We made use of Stamos Capital Partners’ 13F portfolio for the second quarter for this analysis.
Why should we pay attention to Peter Stamos’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Stocks To Buy Now According To Stamos Capital
10. Microsoft Corporation (NASDAQ:MSFT)
Stamos Capital’s Stake Value: $5.4 million
Percentage of Stamos Capital’s 13F Portfolio: 2.85%
Number of Hedge Fund Holders: 238
We start off our list with the multinational technology company, Microsoft Corporation (NASDAQ:MSFT). The company rallied 7.24% on October 29 thanks in part due to strong earnings for the first quarter of 2022.
As of Q2 2021, Stamos Capital held 20,000 shares of the tech giant. These shares were valued at $5.4 million and represented 2.85% of the hedge fund’s portfolio value. By the end of the second quarter of 2021, 238 hedge funds out of the 873 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT), worth roughly $62.46 billion, compared to 251 hedge funds in the previous quarter, with stakes worth approximately $58.9 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
9. The Boeing Company (NYSE:BA)
Stamos Capital’s Stake Value: $5.79 million
Percentage of Stamos Capital’s 13F Portfolio: 3.05%
Number of Hedge Fund Holders: 59
The Boeing Company (NYSE:BA) is a Chicago-based aerospace company that manufactures commercial and military aircraft, alongside telecommunications equipment.
In the second quarter of 2021, The Boeing Company (NYSE:BA) reported earnings per share of $0.40, beating market estimates by $1.13. The company’s revenue for the quarter was reported at $17.0 billion, an increase of 43.97% on a year-over-year basis, surpassing estimates by $112 million.
Of the 873 elite funds tracked by Insider Monkey, 59 were long The Boeing Company (NYSE:BA) at the end of June. Peter Stamos of Stamos Capital Partners holds over 24,200 shares worth $5.79 million in the company. These shares account for 3.05% of the fund’s portfolio.
On October 21, RBC Capital analyst Ken Herbert initiated coverage of The Boeing Company (NYSE:BA) with an Outperform rating and $275 price target.
8. Johnson & Johnson (NYSE:JNJ)
Stamos Capital’s Stake Value: $5.87 million
Percentage of Stamos Capital’s 13F Portfolio: 3.09%
Number of Hedge Fund Holders: 88
Johnson & Johnson (NYSE:JNJ) is a holding company that is involved in the research and development of pharmaceutical products and medical devices.
In Q2 2021, Stamos Capital reported owning 35,650 shares in Johnson & Johnson (NYSE:JNJ), worth $5.87 million. Of the 873 hedge funds tracked by Insider Monkey, 88 hedge funds held positions in Johnson & Johnson (NYSE:JNJ) in Q2 2021, up from 81 in the previous quarter. These stakes are valued at over $7 billion.
In October, Raymond James analyst Jayson Bedford kept a price target of $178 on Johnson & Johnson (NYSE:JNJ), alongside an Outperform rating on the shares of the company.
Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm has to say:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
7. BP p.l.c (NYSE:BP)
Stamos Capital’s Stake Value: $6.05 million
Percentage of Stamos Capital’s 13F Portfolio: 3.18%
Number of Hedge Fund Holders: 30
BP p.l.c (NYSE:BP) operates as a multinational integrated oil and gas company. Based in London, the firm is one of the world’s seven “supermajor” oil and gas companies.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $1.08 billion in BP p.l.c. (NYSE:BP), up from 29 in the previous quarter worth $1.24 billion. Peter Stamos of Stamos Capital Partners currently owns 228,980 shares of the company. These shares were valued at $6.05 million and represent 3.18% of his fund’s portfolio value.
On October 15, Berenberg analyst Henry Tarr upgraded BP p.l.c. (NYSE:BP) to Buy from Hold with a price target of 425 GBp, up from 310 GBp.
6. Royal Dutch Shell plc (NYSE:RDS)
Stamos Capital’s Stake Value: $6.19 million
Percentage of Stamos Capital’s 13F Portfolio: 3.26%
Number of Hedge Fund Holders: 38
Royal Dutch Shell plc (NYSE: RDS) is a British-Dutch energy and petrochemical company that has operations worldwide. Based in the Hague, Netherlands, the company is involved in the exploration of crude oil, natural gas, and natural gas liquids.
Earlier this October, Morgan Stanley analyst Martijn Rats raised the price target on Royal Dutch Shell plc (NYSE:RDS) to 2,089 GBp from 1,865 GBp, and kept an Overweight rating on the shares of the company.
As of the end of the second quarter, 38 hedge funds tracked by Insider Monkey reported owning stakes in Royal Dutch Shell plc (NYSE:RDS). The total worth of these stakes is $2.44 billion. This shows the hedge fund sentiment is positive for the energy company as 36 funds had stakes in the company in the previous quarter, with a total worth of $2.19 billion.
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Disclosure: None. 10 Stocks To Buy Now According To Stamos Capital is originally published on Insider Monkey.
