In this article we discuss the 5 best non-tech stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 10 Best Non-Tech Stocks To Buy Now.
5. Sempra Energy (NYSE: SRE)
Number of Hedge Fund Holders: 33
PE Ratio: 10.05
California-based Sempra Energy owns Southern California Gas Company (SoCalGas), San Diego Gas & Electric (SDG&E), Oncor Electric Delivery Company (Oncor), Sempra LNG and IEnova. The company has over $60 billion in total assets. In the fourth quarter, the company posted adjusted EPS of $1.90, above the Street estimates by $0.33. Revenue in the quarter jumped 7.8% to $3.17 billion, missing the consensus by $350 million. The company also affirmed its 2021 EPS guidance range of $7.50 to $8.10 and upped its dividend. Its dividend yield currently stands at 3.39%.
The company is also getting the attention of the smart money, as 33 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 32 funds a quarter earlier.
4. Berry Global Group, Inc. (NYSE: BERY)
Number of Hedge Fund Holders: 34
PE Ratio: 12.28
Berry Global is a Fortune 500 company that makes packaging solutions, including plastic packaging, non-woven specialty materials, specialty films, adhesives, nonwovens, drink cups, containers and bottles. The stock is up 95% over the last 12 months. The company recently priced the private placement of $775 million of additional 1.57% First Priority Senior Secured Notes due January 15, 2026, with an expiry date of March 4.
With a $367.5 million stake in Berry Global, Eminence Capital owns 6.5 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 34 hedge funds held stakes in BERY as of the end of the fourth quarter, versus 43 funds in the third quarter.
Rhizome Partners, in their Q4 2020 investor letter, said that Berry Global Group, Inc. (NYSE: BERY) has a potentially good investment upside. Here is what Rhizome Partners has to say about Berry Global Group, Inc. in their Q4 2020 investor letter:
“Berry Global is the “Rodney Dangerfield” of value investments. The company recently issued $750mm worth of 2026 debt at 1.57% and used the proceeds to pay down higher coupon debt. The spread between the debt and equity yield is about 10%. Something is mispriced. In 2020, Berry had generated “bond-like” cashflows and had paid down almost $1 billion of debt. The market simply yawned. We keep hearing that institutional investors will not touch Berry until it reduces leverage below 4x EBITDA. Perhaps Berry will work like Griffin in that once they reduce leverage below 4x and starts to show 4-6 quarters of 2% organic growth, the shares may move “violently” to the upside.”
3. Fidelity National Financial, Inc. (NYSE: FNF)
Number of Hedge Fund Holders: 40
PE Ratio: 8.20
Fidelity National Financial ranks 3rd on the list of 10 best non-tech stocks to buy now. The company provides title insurance services for the real estate and mortgage industries. In the fourth quarter, the company posted adjusted EPS of $2.01, beating the Street estimates by $0.69. Revenue in the quarter jumped 60% to $3.77 billion, beating the Street forecasts by $810 million. Fidelity National Financial ranks 365 on the Fortune 500 list.
Windacre Partnership is one of the 40 hedge funds tracked by Insider Monkey having stakes in FNF at the end of the fourth quarter. The fund owns over 12.9 million shares of the company.
2. DICK’S Sporting Goods, Inc. (NYSE: DKS)
Number of Hedge Fund Holders: 42
PE Ratio: 13.51
Dick’s Sporting Goods has been on a tear in recent months. The stock has gained a whopping 360% over the last 12 months. Williams Trading recently started coverage of Dick’s Sporting Goods with a Buy rating, citing positive near and long term outlook. Earlier in March the company revealed its plans to launch an exclusive men’s athletic apparel brand called VRST.
According to our database, the number of DICK’S Sporting Goods’ long hedge funds positions increased at the end of the fourth quarter of 2020. There were 42 hedge funds that hold a position in DKS compared to 41 funds in the third quarter. The biggest stakeholder of the company is Atreides Management, with 1.7 million shares, worth $92.8 million.
In one of their investor letters, Brown Advisory highlighted a few stocks and Dick’s Sporting Goods Inc. (NYSE:DKS) is one of them. Here is what Brown Advisory said:
“Dick’s Sporting Goods reported first quarter earnings in which the company reported better-than-feared results driven by strong ecommerce sales growth that assisted in replacing lost brick and mortar sales as a result of store closures due to COVID-19. In addition to posting quarterly results that were better-than feared, Dick’s is viewed as a company that should be a long-term survivor that is poised to take market share in the sporting goods industry.”
1. Cardinal Health, Inc. (NYSE: CAH)
Number of Hedge Fund Holders: 49
PE Ratio: 12.40
Ranking 1st on the list of 10 best non-tech stocks to buy now is Cardinal Health. In addition to selling generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products, Cardinal provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers. The stock is up 34% over the last 12 months. Baird recently gave bullish comments about Cardinal Health citing strong Q4 results. However, the firm said that this was the least positive quarter for the company when compared to its peers.
As of the end of the fourth quarter, there were 49 hedge funds in Insider Monkey’s database that held stakes in Cardinal Health Inc., compared to 45 funds in the third quarter. D. E. Shaw, with3.3 million shares of CAH, is the biggest stakeholder in the company.
You can also take a peek at Billionaire Jim Simons’ Top 10 Stock Picks and Billionaire Steve Cohen’s Top 10 Stock Picks.
