In this article, we discuss the 3 top stock picks of billionaire Bill Ackman. If you want to read about some stocks in the Ackman portfolio, go directly to 7 Top Stock Picks of Billionaire Bill Ackman.
3. Canadian Pacific Railway Limited (NYSE:CP)
Number of Hedge Fund Holders: 42
Canadian Pacific Railway Limited (NYSE:CP) owns and operates a transcontinental freight railway. Latest data shows that Pershing Square owned 2.9 million shares of Canadian Pacific Railway Limited (NYSE:CP) at the end of the second quarter of 2022 worth $205 million, representing 2.75% of the portfolio.
On September 12, investment advisory Bank of America upgraded Canadian Pacific Railway Limited (NYSE:CP) stock to Buy from Neutral and raised the price target to $87 from $85. Analyst Ken Hoexter issued the ratings update.
At the end of the second quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Canadian Pacific Railway Limited (NYSE:CP), compared to 41 in the preceding quarter worth $8.1 billion.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Canadian Pacific Railway Limited (NYSE:CP) was one of them. Here is what the fund said:
“The other major headwind to relative performance in the quarter was Canadian Pacific Railway Limited (NYSE:CP). The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”
2. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 53
Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer in the United States and internationally. According to regulatory filings, Pershing Square owned 10.2 million shares in Lowe’s Companies, Inc. (NYSE:LOW) at the end of June 2022 worth $1.7 billion, representing 23.89% of the portfolio.
On August 18, Truist analyst Scot Ciccarelli maintained a Buy rating on Lowe’s Companies, Inc. (NYSE:LOW) stock and raised the price target to $263 from $237, appreciating the second quarter earnings results of the firm.
At the end of the second quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in Lowe’s Companies, Inc. (NYSE:LOW), compared to 65 in the previous quarter worth $5.5 billion.
In its Q4 2021 investor letter, Pershing Square Capital Management, an asset management firm, highlighted a few stocks and Lowe’s Companies, Inc. (NYSE:LOW) was one of them. Here is what the fund said:
“Lowe’s Companies, Inc. (NYSE:LOW) is a high-quality business with significant long-term earnings growth potential
Supportive macroeconomic backdrop
- Aging housing stock, lack of new inventory, robust home equity values, and unprecedented pro project backlog
- COVID-19 causing millennials to enter the housing market
Positioned to grow EPS largely independent of market conditions
- Idiosyncratic revenue opportunities driving share gains
- Self-help initiatives catalyzing operating margin expansion
- Buybacks representing ~8% of current market capitalization planned for 2022 (…read more)”
1. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 60
Hilton Worldwide Holdings Inc. (NYSE:HLT), a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. The hedge fund chaired by Ackman owned close to 9.9 million shares of Hilton Worldwide Holdings Inc. (NYSE:HLT) at the end of June 2022 worth $1.1 billion, representing 14.79% of the portfolio.
On September 16, Berenberg analyst Stuart Gordon upgraded Hilton Worldwide Holdings Inc. (NYSE:HLT) stock to Buy from Hold and raised the price target to $152 from $140, noting that the accelerating recovery in lodging was yet to be reflected in the shares.
At the end of the second quarter of 2022, 60 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Hilton Worldwide Holdings Inc. (NYSE:HLT), compared to 52 in the previous quarter worth $5.5 billion.
In its Q4 2021 investor letter, Pershing Square Capital, an asset management firm, highlighted a few stocks and Hilton Worldwide Holdings Inc. (NYSE:HLT) was one of them. Here is what the fund said:
“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality business with a multi-year runway of accelerated earnings growth and an exceptional management team. Industry conditions poised to exceed pre-COVID levels in the near term.
HLT well positioned for enhanced long-term performance.
- Average daily revenue per room (“RevPAR”) likely to recover to pre-COVID levels before the end of 2022.
- Occupancy is improving with average daily rate (“ADR”) already above pre-COVID levels.
- Ability to change room rates daily provides hedge against inflation (…read more).”
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
