In this article, we discuss the 5 best bear market stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 12 Best Bear Market Stocks to Buy Now.
5. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE: JNJ) stock has offered investors returns exceeding 17% over the course of the past year. It is placed fifth on our list of 12 best bear market stocks to buy now. The firm markets healthcare services and is based in New Jersey. On July 21, a day after beating market estimates on earnings per share and revenue for the second quarter, the company announced that it was expecting around $2.5 billion from the sale of the single-shot COVID-19 vaccine that it had developed.
On July 2, investment advisory Cantor Fitzgerald reiterated an Overweight rating on Johnson & Johnson (NYSE: JNJ) stock with a price target of $200, noting the positive new developments for the single-shot COVID-19 vaccine marketed by the firm.
At the end of the first quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Johnson & Johnson (NYSE: JNJ), the same as in the previous quarter worth $5.8 billion.
4. Union Pacific Corporation (NYSE: UNP)
Number of Hedge Fund Holders: 75
Union Pacific Corporation (NYSE: UNP) is a Nebraska-based railroad firm. It is ranked fourth on our list of 12 best bear market stocks to buy now. The company’s shares have returned 25% to investors over the past year. In earnings results for the second quarter, posted on July 22, the firm reported earnings per share of $2.72, beating market estimates by $0.17. The revenue over the period was more than $5.5 billion, up close toi 30% from the revenue over the same period last year and beating estimates by $110 million.
On July 6, investment advisory Loop Capital upgraded Union Pacific Corporation (NYSE: UNP) stock to Buy from Hold with a price target of $269. Rick Paterson, an analyst at the firm, issued the ratings update.
At the end of the first quarter of 2021, 75 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Union Pacific Corporation (NYSE: UNP), up from 68 in the preceding quarter worth $3.5 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Union Pacific Corporation (NYSE: UNP) was one of them. Here is what the fund said:
“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”
3. T-Mobile US, Inc. (NASDAQ: TMUS)
Number of Hedge Fund Holders: 98
T-Mobile US, Inc. (NASDAQ: TMUS) is a Washington-based mobile telecommunications firm. It is ranked third on our list of 12 best bear market stocks to buy now. The company’s shares have returned 38% to investors over the past year. In earnings results for the first quarter, posted on May 4, the firm reported earnings per share of $0.74, beating market predictions by $0.18. The revenue over the period was close to $20 billion, up 78% compared to the revenue over the same period last year and beating estimates by $880 million.
On July 19, investment advisory KeyBanc reiterated an Overweight rating on T-Mobile US, Inc. (NASDAQ: TMUS) stock and raised the price target to $160 from $155, highlighting that the firm was positioned to grow and take share in the wireless market.
Out of the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ: TMUS) with 10.2 million shares worth more than $1.2 billion.
2. Berkshire Hathaway Inc. (NYSE: BRK-A)
Number of Hedge Fund Holders: 111
Berkshire Hathaway Inc. (NYSE: BRK-A) stock has offered investors returns exceeding 45% over the course of the past year. It is placed second on our list of 12 best bear market stocks to buy now. The company is headquartered in Nebraska and has interests in several businesses, acting as a holding firm for all of them. The holding firm has a market cap of over $637 billion and posted more than $245 billion in revenue last year. The firm is headed by legendary value investor Warren Buffett,
In earnings results for the first quarter, posted on May 1, Berkshire Hathaway Inc. (NYSE: BRK-A) reported earnings per share of $5.09 and a revenue of more than $64 billion. Most of the investment portfolio of the holding company is concentrated in just four entities.
At the end of the first quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE: BRK-A), up from 110 in the preceding quarter worth $20 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE: BRK-A) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Apple Inc. (NASDAQ: AAPL) is ranked first on our list of 12 best bear market stocks to buy now. The company’s shares have offered investors returns exceeding 57% over the course of the past twelve months. The company is based in California and has interests in a variety of tech-related business, including the production and sale of electronics. On July 27, the firm posted earnings for the third quarter, reporting earnings per share of $1.30, beating estimates by $0.29. The revenue over the period was more than $81 billion, up 36% year-on-year.
On July 26, investment advisory Baird maintained an Outperform rating on Apple Inc. (NASDAQ: AAPL) stock with a price target of $160, noting that the firm had room to grow as 5G service expanded across the globe.
At the end of the first quarter of 2021, 127 hedge funds in the database of Insider Monkey held stakes worth $130 billion in Apple Inc. (NASDAQ: AAPL), down from 146 in the preceding quarter worth $142 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ: AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
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