In this article we will take a look at the 5 best rebound stocks to buy now. For a detailed analysis of these stocks, go directly to the 10 Best Rebound Stocks to Buy Now.
5. Ford Motor Company (NYSE: F)
Number of Hedge Fund Holders: 41
Ford Motor Company (NYSE: F) is a Michigan-based firm that designs and markets trucks, cars, sport utility vehicles, electric vehicles, and luxury vehicles globally. The company has an automotive division that sells cars, a mobility division that works on several different aspects related to manufacturing, including new forays into electric and autonomous vehicles, and a credit division that deals in car financing. Ford is one of the most famous car brands in the world and was founded in 1903. It is placed fifth on our list of 10 best rebound stocks to buy now.
Ford has a market cap of more than $50 billion and posted more than $127 billion in annual revenue in December 2020. Ford has expanded in China in recent years, where sales of the company rose by more than 70% year-on-year in the first quarter of 2021.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital held the most shares in the firm – 49 million – worth more than $436 million. Pzena Investment Management was second on the list with shares worth $391 million.
4. Live Nation Entertainment, Inc. (NYSE: LYV)
Number of Hedge Fund Holders: 46
Live Nation Entertainment, Inc. (NYSE: LYV) is a California-based entertainment company that manages ticket sales for live entertainment in the United States and internationally. It was founded in 2010 and is placed fourth on our list of 10 best rebound stocks to buy now. The company has four different segments: concerts, ticketing, sponsorship, and advertising. The firm owns and operates at 155 different entertainment venues in the United States and Canada, as well as another 76 venues internationally. It is headquartered in Beverly Hills.
Live Nation has been on an upward trajectory since the lockdown restrictions were lifted and jumped at the beginning of this month as New York Governor Andrew Cuomo lifted a ban on concerts, paving the way for the firm to organize limited gatherings in the city. In February, investment bank Berenberg raised the price target of Live Nation on the back of the return of live events. At the end of the fourth quarter of 2020, 46 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in the firm, down from 50 in the preceding quarter.
Oakmark Global Fund, in their Q4 2020 investor letter, mentioned Live Nation Entertainment, Inc. (NYSE: LYV) and emphasized their views on the company. Here is what Oakmark Global Fund has to say about Live Nation Entertainment, Inc. in their Q4 2020 investor letter:
“In 2006, we initiated our position in Live Nation, the global entertainment company that handles promotion, venue management and ticket sales for live events. Live Nation was spun out of the former Clear Channel Communications in late 2005. In our view, spinoffs often represent attractive opportunities because investors frequently undervalue the new company. We believed this was the case with Live Nation, especially given its initially small market capitalization. As well, when spinoffs are freed from their parents, they typically benefit from intensified management focus and more flexible capital allocation policies. In Live Nation’s case, the spinoff helped make possible the merger with Ticketmaster in 2010, which materially improved the business franchise. Although these factors alone might have made Live Nation a good holding for the Fund, an unexpected technology helped to boost the company’s fortunes: streaming. As the advantages of streaming convinced consumers to reduce or even eliminate their purchases of media, such as CDs and DVDs, artists began to tour more, thereby providing a tailwind to Live Nation’s operations. This accelerated growth in the company’s intrinsic value per share, which in turn generated numerous increases in our sell target for the holding, enabling us to continue to own the shares in the Fund for 14 years. We typically target a three- to five-year holding period for our equity investments, but we love opportunities like Live Nation, which achieve unanticipated intrinsic value growth.”
3. Pioneer Natural Resources Company (NYSE: PXD)
Number of Hedge Fund Holders: 40
Pioneer Natural Resources Company (NYSE: PXD) is a Texas-based energy firm. It explores for, develops, and produces oil, natural gas liquids, and gas. The firm has operations mostly in the Permian Basin. Pioneer Natural has undeveloped and developed reserves of 31 million barrels of oil, 17 million barrels of natural gas liquids, and 88 billion cubic feet of gas. It also has stakes in 11 gas processing plants. The firm was founded in 1997 and is placed third on our list of 10 best rebound stocks to buy now.
As the demand for oil and gas rises post-pandemic, the firm is uniquely placed to benefit from the surge in demand for the two fossil fuels from industrial and residential consumers. On April 14, oil prices hit their highest since March on the back of this increased demand.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management held the most shares in the firm – 1.1 million – worth more than $131 million. Two Sigma Advisors was 2nd with shares of $107 million.
2. Alibaba Group Holding Limited (NYSE: BABA)
Number of Hedge Fund Holders: 156
Alibaba Group Holding Ltd. (NYSE: BABA) is also a China-based multinational technology firm that focuses on e-commerce and internet-related products. It is one of the largest e-commerce platforms in the world and also operates the fifth-largest artificial intelligence company globally by the name of Alibaba Cloud. At its debut on the New York Stock Exchange in 2014, Alibaba raised $25 billion and made a name for itself as the largest initial public offering in the world at the time. In 2020, Forbes magazine named it the 31st largest firm globally.
Alibaba has a market cap of over $608 billion and reported more than $70 billion in revenue in March 2020. Jackson Wong, an analyst at American professional asset management firm Amber Hill Capital, recently said that Alibaba was still the top technology stock in China. The comments on the back of increased regulatory pressure on dual-listed Chinese firms in the US.
At the end of the fourth quarter of 2020, 156 hedge funds in the database of Insider Monkey held stakes worth $17 billion in the firm, down from 166 in the preceding quarter.
Our calculations show that Alibaba Group Holding Limited (NYSE: BABA) ranks 7th in our list of the 30 Most Popular Stocks Among Hedge Funds.
Davis International Fund, in their Q4 2020 investor letter, mentioned Alibaba Group Holding Limited (NYSE: BABA). Here is what Davis International Fund has to say about Alibaba Group Holding Limited in their Q4 2020 investor letter:
“The current focus of the Chinese government is on e-commerce and consumer finance, impacting companies such as e-commerce leader Alibaba, resulting in the delay of the ANT Group IPO. Our expectation is that while a company like Alibaba will have to eliminate business practices such as exclusive supplier arrangements, it will maintain its leading position in the thriving Chinese e-commerce sector due to its brand, scale, network effects and ability to innovate.”
1. Big Lots, Inc. (NYSE: BIG)
Number of Hedge Fund Holders: 19
Big Lots, Inc. (NYSE: BIG) is an Ohio-based retail company. It sells furniture, food, health and beauty products, as well as electronics and chemicals. The company operates more than 1,400 stores in 47 US states. It has an e-commerce platform too. The firm sells plastic products, paper, jewelry and apparel as well. Big Lots has a separate Wholesales division that provides clients with the merchandise they need in bulk orders.
Last month, the Bank of America noted that bargain retailers like Big Lots were expected to benefit from the stimulus packages of the pandemic as delayed tax refunds were being resumed after witnessing a fall of 15% year-on-year at the beginning of the year.
Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Mill Road Capital Management held the most shares in the firm- 1.7 million – worth more than $73 million. Arrowstreet Capital was 2nd with 661,876 shares worth almost $28 million.
You can also take a peek at 10 Best Biotech Stocks To Buy For 2021, and Top 10 Best Freelancing Platforms and Websites for 2021.
