11 Best Conglomerate Stocks to Buy Now

Published on May 4, 2023 at 8:17 am by Omer Farooq in Hedge Funds, News

In this article, we will take a look at the 11 best conglomerate stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Conglomerate Stocks to Buy Now.

Conglomerates are corporations that own and operate multiple diverse businesses, encompassing industries such as manufacturing, finance, technology, energy, retail, and entertainment. These companies acquire subsidiaries through mergers and acquisitions to expand their operations and diversify revenue streams.

Investing in conglomerates provides a unique advantage by offering exposure to various sectors under one umbrella. By leveraging synergies between subsidiaries, conglomerates generate efficiencies, unlock new revenue streams, and navigate economic cycles more effectively. This inherent diversification reduces the impact of industry-specific risks and provides stability amid market volatility.

Portfolio Manager Expects More Volatility Ahead

On April 26 PIMCO’s portfolio manager, Erin Browne, appeared in an interview on CNBC where she discussed the current market environment and her market outlook. According to Browne, the market is not accurately priced for what lies ahead in the economy. She pointed out that the market is still positive, with the S&P trading near 4,100, up roughly 6.25% on a year-to-date basis. Browne thinks that that there is not a widespread sentiment of panic or concern among investors since valuations remain relatively high, trading at around 18.5 times forward earnings. Browne thinks that volatility is likely to rise in the back half of 2023, due to the presence of significant risks that are not adequately priced into the market. Here is what she said:

“As we start to see debt ceiling really come front and center and discussed in the market, as you start to see the economy roll even harder, I do think that volatility sub-20 is pretty remarkable. And I would expect to see that you would be trading in a more normalized 20 to 30 range over the course of the next six months or so. So from here, I would be betting on volatility moving higher. There’s a lot of risk on the horizon, and the market’s really not priced for that risk.”

An area of the market that Erin Browne is particularly bullish on right now is large-cap banks. She thinks that the “globally systemically important banks” will benefit from the weakness in deposit flows and lending in small banks, since they will be able to “step in and take advantage of dislocations in the market” by purchasing assets that small banks are offloading. Erin thinks that large banks will drive outperformance in the medium to long term, even if they experience short-term losses. She suggests that investing in large-cap banks right now can lead to long-term benefits due to capital outflows from smaller banks and opportunities for asset acquisitions.

Conglomerate stocks can be an appealing option for investors seeking diversification and resilience. With their diverse range of business operations, spanning multiple industries, conglomerates can mitigate risks associated with individual sectors and provide a cushion against potential downturns. Some of the best conglomerate stocks to buy now according to hedge funds include Berkshire Hathaway Inc. (NYSE:BRK-B), Honeywell International Inc. (NYSE:HON), and 3M Company (NYSE:MMM). Let’s now discuss these stocks, among others, in detail below.

Photo by Austin Distel on Unsplash

Our Methodology

We used Yahoo Finance’s stock screener to screen for companies that belong to the conglomerates industry and also scoured the internet to find companies with diverse business operations. We sourced each stock’s hedge fund sentiment from Insider Monkey’s database, which keeps track of 943 institutional investors as of Q4 2022. We narrowed down our selection to stocks that were the most widely held by hedge funds. These stocks are ranked in ascending order of the number of hedge funds that have stakes in them.

Best Conglomerate Stocks to Buy Now

11. Tejon Ranch Company (NYSE:TRC)

Number of Hedge Fund Holders: 9

Tejon Ranch Company (NYSE:TRC) is involved in real estate development and agribusiness. The company has five business segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations.

On March 8, Tejon Ranch Company (NYSE:TRC) posted earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $0.07 and outperformed EPS estimates by $0.06. The company’s revenue for the quarter amounted to $17.45 million, up 34.68% year over year and ahead of Wall Street consensus by $5.42 million. Tejon Ranch Company (NYSE:TRC) is one of the best conglomerate stocks to buy now, according to hedge funds.

Tejon Ranch Company (NYSE:TRC) was spotted on 9 hedge funds’ portfolios at the close of Q4 2022 that disclosed collective stakes worth $50.9 million in the company. As of December 31, Horizon Asset Management is the most prominent shareholder in the company and has a position worth $19 million.

Some of hedge funds’ top conglomerate stock picks include Griffon Corporation (NYSE:GFF), Honeywell International Inc. (NYSE:HON), and 3M Company (NYSE:MMM).

10. Seaboard Corporation (NYSE:SEB)

Number of Hedge Fund Holders: 15

Seaboard Corporation is a global company that operates in the agriculture and transportation businesses. The company has six distinct segments: Pork, Commodity Trading & Milling, Marine, Sugar & Alcohol, Power, and Turkey. Seaboard Corporation (NYSE:SEB) is placed tenth among the best conglomerate stocks to buy now according to hedge funds.

Seaboard Corporation (NYSE:SEB) is on the rise and is trading at a compelling PE multiple. As of April 28, the stock is trading at a PE multiple of 7x and has gained 7.24% year to date.

15 hedge funds disclosed having stakes in Seaboard Corporation (NYSE:SEB) at the end of Q4 2022. The total value of these stakes amounted to $98.7 million. As of December 31, Kahn Brothers is the largest stockholder and has a stake worth $37.5 million.

9. Mammoth Energy Services, Inc. (NASDAQ:TUSK)

Number of Hedge Fund Holders: 15

Mammoth Energy Services, Inc. (NASDAQ:TUSK) is an American energy services company. The company does business through four segments: Infrastructure Services, Well Completion Services, Natural Sand Proppant Services, and Drilling Services.

On April 27, Mammoth Energy Services, Inc. (NASDAQ:TUSK) announced strong earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.17 and outperformed EPS expectations by $0.23. The company generated a revenue of $116.32 million and beat Wall Street consensus by $4.75 million.

On April 20, EF Hutton started coverage of Mammoth Energy Services, Inc. (NASDAQ:TUSK) with a Buy rating and a $7 price target. As of April 28, the stock has returned 69.27% to investors over the past 12 months. Mammoth Energy Services, Inc. (NASDAQ:TUSK) is one of the best conglomerate stocks to buy now.

Mammoth Energy Services, Inc. (NASDAQ:TUSK) was a part of 15 investors’ portfolios at the close of the fourth quarter of 2022. These funds disclosed positions worth $275 million in the company. As of December 31, Wexford Capital is the top investor and holds a position worth $194 million.

8. Matthews International Corporation (NASDAQ:MATW)

Number of Hedge Fund Holders: 16

Matthews International Corporation (NASDAQ:MATW) is an American provider of brand solutions, memorialization products, and industrial technologies. The company has three business divisions: Memorialization, Industrial Technologies, and SGK Brand Solutions. As of April 28, the stock has gained 40.89% over the past 6 months and is offering a forward dividend yield of 2.54%. The stock is placed eighth on our list of the best conglomerate stocks to buy now.

On April 27, Matthews International Corporation (NASDAQ:MATW) released earnings for the second quarter of fiscal 2023. The company generated a revenue of $479.58 million, up 7.78% year over year and ahead of market consensus by $29.09 million. The company reported earnings per share of $0.65 and beat EPS estimates by $0.14.

Matthews International Corporation (NASDAQ:MATW) was held by 16 hedge funds at the close of Q4 2022. These funds held positions worth $65 million in the company. As of December 31, GAMCO Investors is the dominant shareholder in the company and has disclosed a stake worth $33.6 million.

7. Veritiv Corporation (NYSE:VRTV)

Number of Hedge Fund Holders: 21

Veritiv Corporation (NYSE:VRTV) is an American B2B provider, specializing in supplying packaging, publishing, and hygiene products to businesses in the U.S. and across the globe. The company has three segments: Packaging, Facility Solutions, and Print.

On March 14, BofA analyst George Staphos raised his price target on Veritiv Corporation (NYSE:VRTV) to $162 from $150 and reiterated a Buy rating on the shares.

Veritiv Corporation (NYSE:VRTV) is one of the best conglomerate stocks to buy now according to hedge funds. As of April 28, the stock is trading at a PE multiple of 4.97 and is offering a forward dividend yield of 2.10%.

At the close of Q4 2022, 21 hedge funds were long Veritiv Corporation (NYSE:VRTV) and held stakes worth $490 million in the company. Of those, CastleKnight Management was the leading investor in the company and disclosed a position worth $11 million.

In addition to Veritiv Corporation (NYSE:VRTV), other conglomerate stocks that are on the radars of hedge funds and analysts include Berkshire Hathaway Inc. (NYSE:BRK-B), Honeywell International Inc. (NYSE:HON), and 3M Company (NYSE:MMM).

6. Valmont Industries, Inc. (NYSE:VMI)

Number of Hedge Fund Holders: 23

Valmont Industries, Inc. (NYSE:VMI) is a global provider of metal products. The company has two business segments: Infrastructure and Agriculture. This April, Stifel revised its price target on Valmont Industries, Inc. (NYSE:VMI) to $352 from $389 and reiterated a Buy rating on the shares.

On April 20, Valmont Industries, Inc. (NYSE:VMI) reported earnings for the first quarter of fiscal 2023. The company reported an EPS of $3.61 and outperformed EPS estimates by $0.23. The company’s revenue for the quarter amounted to $1.06 billion, up 8.33% year over year, and beat Wall Street estimates by $25.62 million.

As of April 28, Valmont Industries, Inc. (NYSE:VMI) industries has returned 15.67% to investors over the past 12 months and is offering a forward dividend yield of 0.83%. The stock is placed sixth among the best conglomerate stocks to buy now, according to hedge funds.

At the end of the fourth quarter of 2022, 23 hedge funds were eager on Valmont Industries, Inc. (NYSE:VMI) and disclosed positions worth $572 million in the company. Of those, Impax Asset Management was the largest stockholder and held a position worth $197 million.

Click to continue reading and see 5 Best Conglomerate Stocks to Buy Now.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on September 27, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up