In this article, we discuss 5 best fast money stocks to buy according to hedge funds. If you want to read about some more fast money stocks, go directly to 10 Best Fast Money Stocks To Buy According To Hedge Funds.
5. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holders: 54
The Progressive Corporation (NYSE:PGR), an insurance holding company, provides personal and commercial auto, personal, residential and commercial property, general liability, and other specialty property-casualty insurance products and related services. It is one of the best fast money stocks to invest in. On August 17, the shares climbed after the auto and property insurer posted results that showed year-on-year growth in premiums. Net premiums written in July increased 8% from a year ago and net premiums earned of $4.69 billion rose 9%.
On August 29, investment advisory Raymond James maintained an Outperform rating on The Progressive Corporation (NYSE:PGR) stock and raised the price target to $140 from $135. Analyst Gregory Peters issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Orbis Investment Management is a leading shareholder in Berkshire Hathaway Inc. (NYSE: BRK-A), with 4.7 million shares worth more than $542 million.
In its Q2 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and The Progressive Corporation (NYSE:PGR) was one of them. Here is what the fund said:
“Progressive Corp had a positive contribution to performance during the quarter. Net Premiums Written (NPW) grew +12% as the Company grew both policies in force and took the rate to offset higher loss cost trends that are being driven by inflation. For example, we estimate accident severity for personal auto is up +35% since the beginning of the pandemic.
However, this is partially offset by a 20% decline in frequency, due to people driving fewer miles. Progressive is making up for this net rise in cost by raising policy rates in the mid-teens percentage range. Progressive has been relatively early to take rate compared to industry peers, so the Company should be able to aggressively compete for share as competitors play catchup.”
4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) transmits, distributes, and sells electric power to retail and wholesale customers in North America. It is one of the top fast money stocks to invest in. On September 16, BMO Capital analyst James Thalacker maintained an Outperform rating on NextEra Energy, Inc. (NYSE:NEE) stock and raised the price target to $100 from $92, noting that the company’s industry-leading profile within the sector warrants a premium valuation given its fundamental and thematic drivers.
At the end of the second quarter of 2022, 59 hedge funds in the database of Insider Monkey held stakes worth $2.76 billion in NextEra Energy, Inc. (NYSE:NEE), compared to 64 in the preceding quarter worth $2.85 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NextEra Energy, Inc. (NYSE:NEE) was one of them. Here is what the fund said:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.
The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”
3. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 69
Humana Inc. (NYSE: HUM) operates as a health and well-being company in the United States. It is one of the elite fast money stocks to invest in. On September 26, RBC Capital analyst Frank Morgan maintained an Outperform rating on Humana Inc. (NYSE:HUM) stock and raised the price target to $544 from $541, noting that the company’s strong long-term earnings targets are driven by growth in core medicare advantage and value-based care initiatives.
At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $3.7 billion in Humana Inc. (NYSE: HUM), compared to 66 in the preceding quarter worth $3.1 billion.
In its Q2 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Humana Inc. (NYSE: HUM) was one of them. Here is what the fund said:
“Humana Inc. (NYSE:HUM) stock has experienced higher volatility over the past year, and its 7% advance in Q2 largely reflected a recovery from the strong selloff that followed a disappointing pullback in its Medicare Advantage member enrollment guidance for 2022 back in January. Despite the near-term volatility, we are confident in Humana’s long-term value creation plan and its ability to achieve market enrollment growth and improvement in its health care services businesses.”
2. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 109
The Walt Disney Company (NYSE:DIS), together with its subsidiaries, operates as an entertainment company worldwide. It is one of the premier fast money stocks to invest in. On September 30, the firm announced that it had entered into a support agreement with activist investor Daniel Loeb and his hedge fund, Third Point. It also said that The Walt Disney Company (NYSE:DIS) would add Facebook veteran Carolyn Everson to the board with Loeb’s support.
On September 30, Bank of America analyst Jessica Reif Ehrlich maintained a Buy rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $127 from $144, citing the company’s lower content sales/licensing revenue.
At the end of the second quarter of 2022, 109 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in The Walt Disney Company (NYSE:DIS), compared to 113 in the previous quarter worth $5.2 billion.
In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“Disney (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) develops, licenses, supports software, services, devices, and solutions worldwide. It is one of the most prominent fast money stocks to invest in. On October 5, Brazil’s antitrust regulator approved the $69 billion Microsoft takeover of video game maker Activision. The deal was approved without any conditions, according to a filing on the regulator’s website. Competitors Sony and Google had raised their concerns about the deal to regulators.
On September 29, Raymond James analyst Andrew Marok resumed coverage of Microsoft Corporation (NASDAQ:MSFT) stock with an Outperform rating and $300 price target, noting the firm had strong positioning in public cloud, gaming, and digital advertising.
At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes worth $56 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 259 in the previous quarter worth $66 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)
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