In this article we discuss the 5 best stocks to buy according to Billionaire Barry Rosenstein’s Jana Partners. If you want to read our detailed analysis of Rosenstein’s investment philosophy and some of the top stocks in his portfolio, go directly to the Best Stocks to Buy According to Billionaire Barry Rosenstein’s Jana Partners.
5. Encompass Health Corporation (NYSE: EHC)
JANA Partner’s Stake Value: $139,497,000
Percent of JANA Partner’s 13F Portfolio: 9.4%
Number of Hedge Fund Holders: 36
Encompass Health Corporation (NYSE: EHC) is an American healthcare company, providing services in post-acute healthcare. The company offers both home-based and facility-based rehabilitation services to its patients.
As of Q1 2021, Barry Rosenstein’s Jana Partners has over 1.7 million shares in the company, valued at $139.4 million. The company accounts for 9.4% of the fund’s 13F portfolio. In the first quarter, Encompass Health Corporation (NYSE: EHC) reported a net income of $132.8 million, up from $108 million during the same period last year. The EPS of $1.05 beat the market consensus by $0.23. The revenue presented a 4% year-over-year growth at $1.2 billion. In Q1, Encompass Health Corporation (NYSE: EHC) also paid $29.1 million to shareholders through dividends. In the past year, the EHC stock has delivered a 19.15% return to shareholders. In July, Deutsche Bank upgraded EHC to ‘Buy’ with a price target of $104.
At the end of Q1 2021, 36 hedge funds tracked by Insider Monkey have positions in Encompass Health Corporation (NYSE: EHC), up from 35 in the previous quarter. The total value of these stakes is over $836 million.
4. TreeHouse Foods, Inc. (NYSE: THS)
JANA Partner’s Stake Value: $216,948,000
Percent of JANA Partner’s 13F Portfolio: 14.62%
Number of Hedge Fund Holders: 27
TreeHouse Foods, Inc. (NYSE: THS) is an American food processing company with headquarters in Illinois, U.S. The company is one of the largest manufacturers of packaged foods and beverages. TreeHouse Foods, Inc. (NYSE: THS) has over 40 production facilities in the U.S., Canada, and Italy. It stands fourth on our list of the best stocks to buy according to billionaire Barry Rosenstein’s Jana Partners.
As of Q1 2021, Jana Partners has over 4.1 million shares in the company, worth $216 million. The firm increased its position in the company by 105% and now owns 7.4% of the company’s outstanding shares of common stock. In the first quarter, TreeHouse Foods, Inc. (NYSE: THS) reported a net income of $20.5 million and EPS of $0.36, beating the estimate by $0.04. The revenue presented a 2.5% year-over-year growth at $1.05 billion. For the second quarter, the company expects revenue in the range of $1.02 to $1.07 billion. In the past year, the THS stock has delivered a 3% return to shareholders. Currently, 2 Wall Street analysts have a ‘Buy’ rating on the stock, with an average price target of $50.38.
The number of hedge funds having positions in TreeHouse Foods, Inc. (NYSE: THS) has also increased to 27 in Q1 2021, compared with 24 in the previous quarter. The total value of these stakes is $368.8 million.
3. Perspecta Inc. (NYSE: PRSP)
JANA Partner’s Stake Value: $226,597,000
Percent of JANA Partner’s 13F Portfolio: 15.27%
Number of Hedge Fund Holders: 40
Perspecta Inc. (NYSE: PRSP) is an information technology company that was founded in 2018. Recently, the company has been acquired by the national security company, Peraton Inc. in a $7.1 billion deal. The company will now go by the name of Peraton Inc. Perspecta Inc. (NYSE: PRSP) specializes in information technology in areas such as defense, space, intelligence, cyber, homeland and security, health, etc. It is the third-largest holding of Barry Rosenstein’s Jana Partners.
In Q3 2021, Barry Rosenstein’s Jana Partners holds over 7.8 million shares in Perspecta Inc. (NYSE: PRSP), worth $226.5 million. In the third quarter, the company reported a net income of $90 million and EPS of $0.56, beating the market consensus by $0.04. Perspecta Inc. (NYSE: PRSP) also beat revenue by $50 million at $1.13 billion. The Defense and Intelligence segment generated revenue of $795 million whereas the Healthcare segment accounted for $339 million of the gross revenue.
As of Q1 2021, 40 hedge funds tracked by Insider Monkey have positions in Perspecta Inc. (NYSE: PRSP), up from 37 in the previous quarter. The total value of these stakes is $957.8 million.
2. Laboratory Corporation of America Holdings (NYSE: LH)
JANA Partner’s Stake Value: $290,629,000
Percent of JANA Partner’s 13F Portfolio: 19.59%
Number of Hedge Fund Holders: 54
Laboratory Corporation of America Holdings (NYSE: LH), commonly known as LabCorp, stands second on our list of the best stocks to buy according to Billionaire Barry Rosenstein’s Jana Partners. LabCorp is an American diagnostic and testing laboratories company with headquarters in North Carolina, U.S. It is one of the largest laboratory networks globally and processes over 3 million patient specimens per week.
As of Q1 2021, Barry Rosenstein’s Jana Partners has over 1.13 million shares in the company, worth $290.6 million. The fund has increased its position in the company by 41% in the first quarter. It currently accounts for 19.59% of the fund’s 13F portfolio. In Q1 2021, Laboratory Corporation of America Holdings (NYSE: LH) reported strong earnings. The company’s net income was recorded at $865 million, up from $232 million during the same period last year. The EPS of $8.79 beat the consensus by $1.36. The revenue also grew from $2.8 billion last year to $4.2 billion in the first quarter.
At the end of Q1 2021, 54 hedge funds tracked by Insider Monkey have positions in Laboratory Corporation of America Holdings (NYSE: LH), worth $2.4 billion.
1. Conagra Brands, Inc. (NYSE: CAG)
JANA Partner’s Stake Value: $408,276,000
Percent of JANA Partner’s 13F Portfolio: 27.52%
Number of Hedge Fund Holders: 30
Conagra Brands, Inc. (NYSE: CAG) is the largest holding of Barry Rosenstein’s Jana Partners. It is an American packaged goods company with headquarters in Chicago, U.S. It owns some of the most famous packaged food brands, such as Birds Eye, Duncan Hines, Marie Callender’s, Healthy Choice, etc. The company has approximately 16,500 employees across 50 locations.
As of Q1 2021, Jana Partners holds 10.8 million stakes in the company, worth $408.2 million, making it one of the best stocks to buy according to Billionaire Barry Rosenstein’s Jana Partners. The company accounts for 27.52% of the fund’s portfolio. In Q4 FY21, Conagra Brands, Inc. (NYSE: CAG) reported a net income of $261 million. The EPS was recorded at $0.54, beating the market consensus by $0.02. The company raised its annual dividend by 14% to $0.3125 per share.
In the first quarter of 2021, 30 hedge funds tracked by Insider Monkey have positions in Conagra Brands, Inc. (NYSE: CAG), up from 28 in the previous quarter. The total value of these stakes is over $700 million.
You can also take a look at Barry Rosenstein and Jana Partners’ Top Stock Picks and 10 Best Safe Dividend Stocks According to Billionaire Dan Loeb.
