In this article, we will take a look at the 5 best conglomerate stocks to buy now. If you want to explore similar stocks, you can go to 11 Best Conglomerate Stocks to Buy Now.
5. MDU Resources Group, Inc. (NYSE:MDU)
Number of Hedge Fund Holders: 27
MDU Resources Group, Inc. (NYSE:MDU) is involved in various sectors within the United States, including regulated energy delivery, construction materials, and services. The company has five distinct divisions: Electric, Natural Gas Distribution, Pipeline, Construction Materials & Contracting, and Construction Services. MDU Resources Group, Inc. (NYSE:MDU) is one of the best conglomerate stocks to buy now and has gained 13.61% over the past 12 months, as of April 28.
As of March 2023, MDU Resources Group, Inc. (NYSE:MDU) has 2 Buy ratings and 2 Hold ratings from Wall Street analysts. The stock has an average price target of $33.50, which implies an upside of 14.73% from current levels.
27 hedge funds held stakes in MDU Resources Group, Inc. (NYSE:MDU) at the close of Q4 2022. The total value of these stakes amounted to $579 million. As of December 31, Corvex Capital is the top investor in the company and has a stake worth $307 million.
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4. Griffon Corporation (NYSE:GFF)
Number of Hedge Fund Holders: 28
Griffon Corporation (NYSE:GFF) is a leading global conglomerate that operates through three segments: Telephonics, Building Products, and Plastics. Griffon Corporation (NYSE:GFF) was spotted on 28 hedge funds’ portfolios at the close of Q4 2022. These funds disclosed positions worth $295 million in the company. As of December 31, Voss Capital is the most prominent shareholder and has a stake worth $103 million.
On April 20, Griffon Corporation (NYSE:GFF) announced a special cash dividend of $2.00 per share. The dividend is payable on May 19 to stockholders of record at the close of business on May 9. As of April 28, the stock is offering a forward dividend yield of 1.44% and has gained 26.84% over the past 12 months. Griffon Corporation (NYSE:GFF) is ranked fourth on our list of the best conglomerate stocks to buy now.
Greystone Capital Management made the following comment about Griffon Corporation (NYSE:GFF) in its Q4 2022 investor letter:
“Last quarter I wrote about a new position in a small cap consumer products business that manufactures tools and home improvement items as well as residential and commercial garage doors. The company is Griffon Corporation (NYSE:GFF), and is one of our top five positions heading into 2023. This is an attractive situation for several reasons, but mostly due to the strength of Griffon’s Home and Building Products segment and the significant corporate governance improvements recently enacted.
Griffon Corp. is made up of two business segments, Consumer and Professional Products (‘CPP’) and Home and Building Products (‘HBP’). CPP manufactures popular home accessories and garden tools through quality brand names such as ClosetMaid and Ames. HBP is one of the leading manufacturers in the US of residential garage doors and rolling steel doors, with a nearly 50% market share through their Clopay and CornellCookson brands. CPP has struggled under the weight of poor acquisitions, lack of cohesiveness and underinvestment, but possesses strong market share in garden tools and has typically done well through various business cycles. Griffon’s HBP segment has cockroach-like elements, with a history of strong organic growth and resilience over multiple decades. Today, Clopay and CornellCookson are responsible for nearly half of Griffon’s revenue and around 60% of EBITDA. Given their strong characteristics of resiliency, cash flows and returns on capital, these businesses make great acquisition candidates and recent industry consolidation adds a valuable element to the mix. Valuing HBP using an EBITDA multiple in line with similar businesses as well as recent transaction comps reflects a per share price that could exceed Griffon’s current enterprise value…” (Click here to read the full text)
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3. Honeywell International Inc. (NYSE:HON)
Number of Hedge Fund Holders: 44
On April 27, Honeywell International Inc. (NYSE:HON) reported strong earnings for the fiscal first quarter of 2023. The company generated a revenue of $8.86 billion, up 5.83% year over year, and outperformed market expectations by $349.90 million. The company reported earnings per share of $2.07 and beat EPS estimates by $0.14.
Shortly after the company’s earnings release, Citi analyst Andrew Kaplowitz raised his price target on Honeywell International Inc. (NYSE:HON) to $242 from $240 and maintained a Buy rating on the shares. Honeywell International Inc. (NYSE:HON) is one of the best conglomerate stocks to buy now, according to hedge funds.
Honeywell International Inc. (NYSE:HON) was held by 44 hedge funds at the end of Q4 2022 that disclosed stakes worth $697 million in the company. Of those, Diamond Hill Capital was the top stockholder and held a stake worth $245 million.
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2. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 52
3M Company (NYSE:MMM) was a part of 52 investors’ portfolios at the close of the fourth quarter of 2022. These funds held positions worth $1.5 billion in the company. As of December 31, AQR Capital Management is the leading shareholder in the company and has a stake worth $220 million. 3M Company (NYSE:MMM) is placed second on our list of best conglomerate stock to buy now according to hedge funds.
As of March 2023, 3M Company (NYSE:MMM) has 15 Hold ratings from Wall Street analysts and an average price target of $110. The stock’s average price target represents an upside of 3.56% from current levels. As of April 28, 3M Company (NYSE:MMM) is trading at a PE multiple of 10.97 and is offering a forward dividend yield of 5.65%.
On April 25, 3M Company (NYSE:MMM) posted market-beating earnings for the first quarter of fiscal 2023. The company reported an EPS of $1.97 and beat EPS expectations by $0.37. The company generated a revenue of $8.03 billion and outperformed market consensus by $517.3 million.
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1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 110
Berkshire Hathaway Inc. (NYSE:BRK-B) is a renowned conglomerate and investment company led by Warren Buffett, widely considered one of the most successful investors of all time. Berkshire Hathaway Inc. (NYSE:BRK-B) has a diverse portfolio of businesses across various sectors, including insurance, utilities, manufacturing, transportation, and more.
As of April 2023, Berkshire Hathaway Inc. (NYSE:BRK-B) has 1 Buy rating, 1 Outperform rating, and 4 Hold ratings from Wall Street analysts. The stock has an average price target of $367.26, which implies an upside of 12.72% from current levels. Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best conglomerate stocks to buy now, according to hedge funds.
110 hedge funds held stakes in Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of Q4 2022. The total value of these stakes amounted to $15.7 billion. As of December 31, Bill & Melinda Gates Foundation Trust is the top investor in the company and has a stake worth $7.6 billion.
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