In this article, we discuss 5 best stocks to buy according to billionaire Jeffrey Talpins. If you want to see more holdings of the billionaire, click 10 Best Stocks to Buy According to Billionaire Jeffrey Talpins.
5. The Procter & Gamble Company (NYSE:PG)
Element Capital Management’s Stake Value: $102,876,000
Percentage of Element Capital Management’s 13F Portfolio: 6.61%
Number of Hedge Fund Holders: 67
The Procter & Gamble Company (NYSE:PG) is an American multinational corporation that markets and distributes branded consumer packaged goods in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. Billionaire Jeffrey Talpins’ hedge fund owned a stake worth $102.8 million in The Procter & Gamble Company (NYSE:PG) in the fourth quarter of 2021.
On April 20, The Procter & Gamble Company (NYSE:PG) posted its financial results for the first fiscal quarter of 2022. The company announced earnings per share of $1.33, ahead of analysts’ forecasts by $0.04. The $19.38 billion revenue outperformed estimates by almost $688 million.
The Procter & Gamble Company (NYSE:PG) declared on April 12 a $0.9133 per share quarterly dividend, a 5% increase from its prior dividend of $0.8698. The dividend is payable on May 16, to shareholders of the company as of April 22. The Procter & Gamble Company (NYSE:PG) is a significant dividend king, with a 66-year history of consecutive dividend growth.
Barclays analyst Lauren Lieberman raised the price target on The Procter & Gamble Company (NYSE:PG) to $176 from $167 and kept an Overweight rating on the shares on April 22. The analyst expects the company’s results to “set an extremely high bar” for the sector and ultimately reinforce The Procter & Gamble Company (NYSE:PG)’s “widened fundamental performance gap”.
According to Insider Monkey’s Q4 data, 67 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG), with collective stakes amounting to $6.6 billion. Rajiv Jain’s GQG Partners held the largest position in the company, with 7.5 million shares worth $1.2 billion.
4. Johnson & Johnson (NYSE:JNJ)
Element Capital Management’s Stake Value: $108,761,000
Percentage of Element Capital Management’s 13F Portfolio: 6.99%
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) is an American manufacturer of consumer health products, pharmaceutical drugs, and medical devices. Billionaire Jeffrey Talpins’ Element Capital Management added 635,767 shares of Johnson & Johnson (NYSE:JNJ) to its Q4 portfolio, worth $108.7 million, accounting for about 7% of the total 13F securities.
On April 19, Johnson & Johnson (NYSE:JNJ) declared a $1.13 per share quarterly dividend, a 6.6% increase from its prior dividend of $1.06. The dividend is payable on June 7, to shareholders of the company as of May 24. 2022 marks the 60th consecutive year of dividend increases by Johnson & Johnson (NYSE:JNJ), establishing it as a reliable dividend king.
Johnson & Johnson (NYSE:JNJ) announced its Q1 2022 results on April 19, posting earnings per share of $2.67, above market consensus by $0.10. Although the $23.43 billion revenue grew about 5% in Q1, it fell short of analysts’ predictions by $192.16 million.
Citi analyst Joanne Wuensch on April 20 raised the price target on Johnson & Johnson (NYSE:JNJ) to $210 from $203 and reiterated a Buy rating on the shares. The analyst told investors that the company’s Q1 results reflected a recovery across the business driven by expense and currency headwinds. The core business “seems to be gaining its footing with forward commentary fairly robust”, added the analyst.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 83 funds were long Johnson & Johnson (NYSE:JNJ), compared to 88 funds in the earlier quarter. Terry Smith’s Fundsmith LLP is the biggest shareholder of the company, with a position worth $1.2 billion.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Element Capital Management’s Stake Value: $128,192,000
Percentage of Element Capital Management’s 13F Portfolio: 8.24%
Number of Hedge Fund Holders: 279
Billionaire Jeffrey Talpins’ Element Capital Management added 38,446 shares of Amazon.com, Inc. (NASDAQ:AMZN) to its Q4 2021 portfolio, worth over $128 million, representing 8.24% of the total 13F securities. Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational company that specializes in e-commerce, cloud computing, artificial intelligence, consumer electronics, digital streaming and entertainment, and self-driving cars.
Amazon.com, Inc. (NASDAQ:AMZN) reported its Q1 results on April 28, posting a loss per share of $7.56, missing consensus estimates by $16.05. Revenue for the quarter grew 7.30% year-over-year to $116.44 billion, but missed market predictions by $67.09 million.
On May 2, Wedbush analyst Michael Pachter removed Amazon.com, Inc. (NASDAQ:AMZN) from its Best Ideas List owing to its investment price discipline. The analyst has an Outperform rating and a price target of $3,500 on the shares.
According to Insider Monkey’s Q4 data, 279 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 242 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a prominent shareholder of the company, with more than 2 million shares worth $7.2 billion.
Here is what Oakmark Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Amazon is the leading e-commerce and cloud-computing provider in the world. In e-commerce, two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (AWS) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale, and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at an attractive multiple of normalized earnings and a discount to its peer-weighted enterprise value-to-sales multiple.”
2. Walmart Inc. (NYSE:WMT)
Element Capital Management’s Stake Value: $135,861,000
Percentage of Element Capital Management’s 13F Portfolio: 8.74%
Number of Hedge Fund Holders: 63
Walmart Inc. (NYSE:WMT) is an American multinational retailer and wholesaler, running a network of supermarkets, hypermarkets, superstores, and convenience shops. Billionaire Jeffrey Talpins’ hedge fund purchased 938,982 Walmart Inc. (NYSE:WMT) shares in the fourth quarter of 2021, worth $135.8 million, representing 8.74% of the 13F portfolio.
On April 8, DA Davidson analyst Michael Baker raised the price target on Walmart Inc. (NYSE:WMT) to $171 from $168 and kept a Buy rating on the shares. The analyst stated a higher potential valuation for Flipkart, with reports suggesting that Walmart Inc. (NYSE:WMT) has “raised their internal valuation for Flipkart from $60B to $70B”. The company has been one of the top performers in 2022 after the underperformance in 2021, gaining 7.5% as retailers of more basic necessities have outperformed retailers of discretionary products, the analyst told investors in a research note.
According to Insider Monkey’s database of elite funds, Walmart Inc. (NYSE:WMT) was found in the public stock portfolios of 63 hedge funds, compared to 71 funds in the preceding quarter. Pittencrieff Partners – Gabalex Capital is a significant position holder in the company, with 140,000 shares worth close to $21 million.
1. Pfizer Inc. (NYSE:PFE)
Element Capital Management’s Stake Value: $148,156,000
Percentage of Element Capital Management’s 13F Portfolio: 9.53%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotechnology company that sells drugs and vaccines catering to immunology, oncology, cardiology, endocrinology, and neurology. Element Capital Management owned a $148.1 million stake in Pfizer Inc. (NYSE:PFE) in Q4 2021, representing 9.53% of the total 13F holdings.
On April 28, Pfizer Inc. (NYSE:PFE) declared a quarterly dividend of $0.40 per share, in line with previous. The dividend is payable on June 10, to shareholders of record on May 13. The company’s dividend yield on May 6 stood at 3.29%.
Pfizer Inc. (NYSE:PFE) reported on May 3 earnings for Q1 2022, posting an EPS of $1.62, above consensus by $0.05. Revenue for the period increased about 76% year-over-year to $25.66 billion, surpassing analysts’ predictions by $927.11 million.
Wells Fargo analyst Mohit Bansal on May 4 lowered the price target on Pfizer Inc. (NYSE:PFE) to $55 from $60 and maintained an Overweight rating on the shares. The analyst thinks buy-side expectations have declined significantly for a COVID tail and investors have started caring about the core business again. This year core business is against a difficult year-over-year comp but is growing operationally at about 5%, the analyst added.
According to the fourth quarter database of Insider Monkey, 83 hedge funds were bullish on Pfizer Inc. (NYSE:PFE), compared to 74 funds in the last quarter. Philippe Laffont’s Coatue Management held a prominent stake in the company, with 10.3 million shares worth about $609 million.
Here is what ClearBridge Investments Value Equity Strategy has to say about Pfizer Inc. (NYSE:PFE) in its Q4 2021 investor letter:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.
What we did not account for, however, was vaccine hesitancy and the risk of further infection waves. As a result, the first variant wave, Delta, was a negative surprise to both the market and our team. When the risk surfaced, we immediately updated our probability-driven models and debated how we should react. The resulting conclusion was that the recovery would be delayed and that we should reduce our exposure quickly, subsequently targeting the most aggressive recovery stocks such as cruise lines. We again acted swiftly and decisively to the positive surprise that Pfizer had delivered a high-efficacy antiviral COVID-19 pill. This pill should greatly reduce COVID-19 severity risks globally, increasing the probability of a global travel recovery in 2022. While this is still true, the emergence of the highly mutated Omicron variant set off another infection wave which spurred us to again act quickly and further reduce our risk exposure. This back-and-forth may sound exhausting, but it highlights our compulsion to act if we determine a surprise has a large enough impact on the probabilities that power our valuation-driven investment cases.”
You can also take a look at Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio and 10 Biotech Stocks to Buy Today According to Ken Fisher’s Fisher Asset Management.
