In this article, we discuss 3 stocks to buy according to Zach Schreiber’s PointState Capital. If you want our detailed analysis of Zach Schreiber’s history, investment philosophy, and hedge fund performance, go directly to 6 Stocks To Buy According To Zach Schreiber’s PointState Capital.
3. Exelon Corporation (NASDAQ:EXC)
PointState Capital’s Stake Value: $80,189,000
Percentage of PointState Capital’s 13F Portfolio: 1.33%
Number of Hedge Fund Holders: 36
Exelon Corporation (NASDAQ:EXC) is a Fortune 100 Company and is one of the leading American energy providers. Exelon Corporation (NASDAQ:EXC) is an end-to-end energy corporation, offering power generation, energy sales, transmission, and delivery. The company possesses more than 31,000 megawatts of nuclear, gas, wind, solar, and hydroelectric generating capacity. Exelon Corporation (NASDAQ:EXC) is one of the cleanest and most cost-effective power energy providers.
PointState Capital owns 1.65 million shares of Exelon Corporation (NASDAQ:EXC) as of September 2021, valued at $80.1 million, making up 1.33% of the firm’s 13F portfolio.
At the end of September, 36 hedge funds reported owning stakes in Exelon Corporation (NASDAQ:EXC), up from 35 in the previous quarter.
On October 29, Exelon Corporation (NASDAQ:EXC) announced a quarterly dividend of $0.3825 per share, with a forward yield of 2.88%. This dividend was paid on December 10, to shareholders on record as of November 15.
Here is what Heartland Advisors has to say about Exelon Corporation (NASDAQ:EXC) in its Q3 2021 investor letter:
“Power aid. A renewed interest in less-volatile industries and income-generating businesses helped propel less volatile names in areas such as Utilities. Our holdings in the sector were up modestly during the period and outperformed the benchmark on a relative basis, led by Exelon Corp (EXC).
The company is a large multi-state utility with regulated as well as unregulated operations. Following a strategic review, Exelon announced a plan this year to separate the two businesses. Since the time of the announcement, investors have gotten a clearer view into prospects of both operations and have seen improvements in results, and shares have appreciated. The decision and recent improvements, in our view, set the stage for a further re-rating of the company…” (Click here to see the full text)
2. Workday, Inc. (NASDAQ:WDAY)
PointState Capital’s Stake Value: $115,896,000
Percentage of PointState Capital’s 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 72
A cloud-based financial management and human capital management software company, Workday, Inc. (NASDAQ:WDAY) is one of the top new stocks in Zach Schreiber’s PointState Capital’s Q2 portfolio. Workday, Inc. (NASDAQ:WDAY) offers on-demand enterprise management services to the healthcare, retail, manufacturing, education, hospitality, and financial services sectors, among others.
PointState Capital owns 463,789 shares of Workday, Inc. (NASDAQ:WDAY), worth $115.8 million, representing 1.93% of the firm’s Q3 portfolio.
At the end of the third quarter, 72 hedge funds in Insider Monkey’s database of elite funds reported owning stakes in Workday, Inc. (NASDAQ:WDAY), worth $6.3 billion.
Workday, Inc. (NASDAQ:WDAY) was awarded a Buy rating by Deutsche Bank analyst Brad Zelnick on November 1. He kept a $360 price target on the stock, citing strong company fundamentals that make Workday, Inc. (NASDAQ:WDAY) well-positioned for a strong future outlook.
Here is what ClearBridge Investments has to say about Workday, Inc. (NASDAQ:WDAY) in its Q1 2021 investor letter:
“In addition to the new issue market, we have been tactically adding growth exposure. We took advantage of the selloff in disruptors that comprise a large portion of the portfolio to initiate a position in enterprise software maker Workday.”
1. Uber Technologies, Inc. (NYSE:UBER)
PointState Capital’s Stake Value: $175,349,ooo
Percentage of PointState Capital’s 13F Portfolio: 2.92%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is one of the top stocks in Zach Schreiber’s portfolio as of the third quarter. PointState Capital owns a $175.3 million stake in the ride-hailing company that revolutionized cab services across the globe, in more than 900 cities.
Uber Technologies, Inc. (NYSE:UBER) announced a partnership with Bed Bath & Beyond Inc. (NASDAQ:BBBY) and Buy Buy Baby, Inc. on November 1, where baby and kid essentials will be delivered door to door via Uber and Uber Eats apps in the United States.
Similarly, Uber Technologies, Inc. (NYSE:UBER) announced a deal with Tesla, Inc. (NASDAQ:TSLA) on October 24, where drivers would have access to 50,000 EVs by Tesla, Inc. (NASDAQ:TSLA). This can potentially kickstart the lucrative robotaxi industry in the United States. This is also a step in the right direction for Uber Technologies, Inc. (NYSE:UBER), as it will result in higher profitability and net revenue for the company.
At the end of the third quarter, 143 hedge funds tracked by Insider Monkey were long Uber Technologies, Inc. (NYSE:UBER), up from 135 in Q1.
Here is what ClearBridge Investments has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q2 2021 investor letter:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
You can also take a look at Yale University Stock Portfolio: Top 10 Picks and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.
