In this article, we discuss the 5 best stocks to buy according to billionaire Larry Robbins. If you want our detailed analysis of these stocks, go directly to 10 Best Stocks To Buy According to Billionaire Larry Robbins.
5. AmerisourceBergen Corporation (NYSE:ABC)
Glenview Capital’s Stake Value: $225,283,000
Percentage of Glenview Capital’s 13F Portfolio: 4.12%
Number of Hedge Fund Holders: 44
Billionaire Larry Robbins owns a $225.2 million stake in AmerisourceBergen Corporation (NYSE:ABC) as of September 2021, and the stock represents 4.12% of his total third quarter investments. AmerisourceBergen Corporation (NYSE:ABC) is an American wholesale company providing pharmaceutical drugs and pharmacy services.
Deutsche Bank analyst George Hill on November 12 raised the price target on AmerisourceBergen Corporation (NYSE:ABC) to $153 from $136 and kept a Hold rating on the shares after the “modest beat” in the third quarter.
Suvretta Capital Management is the largest AmerisourceBergen Corporation (NYSE:ABC) stakeholder, with 1.2 million shares, worth $147.5 million. Overall, 44 hedge funds held stakes in AmerisourceBergen Corporation (NYSE:ABC) during the third quarter of 2021.
Here is what Heartland Advisors has to say about AmerisourceBergen Corporation (NYSE:ABC) in its Q3 2021 investor letter:
“The ABCs of quality.AmerisourceBergen Corp. (ABC), a leading national pharmaceutical distributor, provides an example of our approach. The company has been quietly bolstering its business model during the past few years to include animal health products for the European market and an expanded line of higher-margin, value-added services that reach beyond drug distribution. During these efforts, valuations for the company have been under pressure due to liability issues stemming from opioid litigation as well as concerns about increased scrutiny of drug prices by politicians.
Our team has been following these developments and believes the strides management has made on the business side are not being fully recognized by the market. As more clarity has emerged related to opioid litigation, we’ve increased the portfolio’s stake in AmerisourceBergen and believe the investment provides the portfolio with additional exposure to a high-quality business that is well positioned to grow despite operating in a mature industry.”
4. Cigna Corporation (NYSE:CI)
Glenview Capital’s Stake Value: $264,777,000
Percentage of Glenview Capital’s 13F Portfolio: 4.85%
Number of Hedge Fund Holders: 58
Cigna Corporation (NYSE:CI), a Connecticut-based managed healthcare and insurance company, is one of the top stock picks of billionaire Larry Robbins, who owns a $264.7 million position in Cigna Corporation (NYSE:CI) as of Q3 2021.
JPMorgan analyst Lisa Gill downgraded Cigna Corporation (NYSE:CI) to Neutral from Overweight on December 21, with a price target of $248, down from $270. While Cigna Corporation (NYSE:CI) is well positioned on a long term basis, the analyst is interested in other managed care names that provide better near-term upside.
Arrowstreet Capital, the leading Cigna Corporation (NYSE:CI) stakeholder, boosted its position in the company by 156% during the third quarter, owning a total of 1.74 million shares worth $350.1 million. Overall, 58 hedge funds monitored by Insider Monkey were bullish on Cigna Corporation (NYSE:CI) as of September 2021.
Here is what Dodge & Cox Funds has to say about Cigna Corporation (NYSE:CI) in its Q3 2021 investor letter:
“Cigna (2.5% position) is one of the largest and most diversified health care services organizations in the United States. The stock has underperformed recently due to weak financial results, which included higher than expected medical costs. Nevertheless, the company continues to work towards its 10-13% annual earnings growth target, generates significant cash flow, and has plans to deploy capital to shareholders through debt repayments, share buybacks, and a newly announced dividend program. Cigna trades at an attractive valuation of nine times forward earnings.”
3. McKesson Corporation (NYSE:MCK)
Glenview Capital’s Stake Value: $345,135,000
Percentage of Glenview Capital’s 13F Portfolio: 6.32%
Number of Hedge Fund Holders: 51
McKesson Corporation (NYSE:MCK) is a pharmaceuticals, medical technology, and healthcare services company from New York City. Larry Robbins, via Glenview Capital, owns 1.73 million shares of McKesson Corporation (NYSE:MCK), worth $345.1 million, representing 6.32% of the fund’s total Q3 portfolio.
In its Q3 results posted on November 1, McKesson Corporation (NYSE:MCK) reported earnings per share of $6.15, exceeding estimates by $1.49. The revenue gained 9.49% from the prior-year quarter, totaling $66.58 billion, outperforming estimates by $3.36 billion.
In the third quarter of 2021, 51 hedge funds reported owning stakes worth $2.27 billion in McKesson Corporation (NYSE:MCK). Pzena Investment Management is the largest McKesson Corporation (NYSE:MCK) stakeholder, with approximately 3 million shares, valued at roughly $594 million.
Mizuho analyst Ann Hynes on December 20 raised the price target on McKesson Corporation (NYSE:MCK) to $250 from $236 and kept a Neutral rating on the shares, stating that the managed care sector is set to outperform in 2022.
Here is what Broyhill Asset Management has to say about McKesson Corporation (NYSE:MCK) in its Q2 2021 investor letter:
“Analysts continued ratcheting up full-year earnings estimates for McKesson (MCK) driving the stock steadily higher. Despite strong year-to-date gains, shares of the company are trading at lower valuations today than before the pandemic as earnings estimates have outpaced their rising stock prices… The story is similar at McKesson where vaccine distribution should continue to provide upside to consensus estimates. Although investors have been hesitant to give the company full credit for today’s “temporary” profits, we think these “temporary” COVID-tailwinds may turn out to be not so temporary. If we are wrong, we believe the downside is limited given recent activist involvement and management’s decision to pursue a strategic review to capture the full value of the company’s drug development business.”
2. Bausch Health Companies Inc. (NYSE:BHC)
Glenview Capital’s Stake Value: $435,831,000
Percentage of Glenview Capital’s 13F Portfolio: 7.98%
Number of Hedge Fund Holders: 39
Bausch Health Companies Inc. (NYSE:BHC) is one of the best stocks to buy according to Larry Robbins, with the billionaire holding 15.6 million shares of the company, worth $435.8 million. Bausch Health Companies Inc. (NYSE:BHC) is a Canadian pharmaceutical company, offering branded drugs for skin diseases, gastrointestinal disorders, eye health, and neurology.
In Q3 2021, 39 hedge funds from Insider Monkey’s database of 867 elite hedge funds reported owning stakes in Bausch Health Companies Inc. (NYSE:BHC), worth $3.84 billion. This is compared to 45 funds holding stakes amounting to roughly $4 billion in Bausch Health Companies Inc. (NYSE:BHC) in the preceding quarter.
On November 2, Bausch Health Companies Inc. (NYSE:BHC) reported Q3 earnings, posting an EPS of $1.15, beating estimates by $0.08. The $2.11 billion revenue missed estimates by $41.53 million.
JPMorgan analyst Chris Schott on November 3 recommended taking advantage of the post-earnings selloff in shares of Bausch Health Companies Inc. (NYSE:BHC). Schott kept an Overweight rating on the shares with a $38 price target.
Here is what Miller Value Investors has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q1 2021 investor letter:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosed a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
1. Tenet Healthcare Corporation (NYSE:THC)
Glenview Capital’s Stake Value: $574,888,000
Percentage of Glenview Capital’s 13F Portfolio: 10.53%
Number of Hedge Fund Holders: 47
Tenet Healthcare Corporation (NYSE:THC) is the largest holding in billionaire Larry Robbins’ third quarter portfolio, with the billionaire holding 8.65 million company shares, worth $574.8 million, representing 10.53% of his total Q3 investments. Tenet Healthcare Corporation (NYSE:THC) is a Texas-based multinational healthcare company that operates a network of healthcare clinics and hospitals across the United States.
Publishing its Q3 earnings on October 20, Tenet Healthcare Corporation (NYSE:THC) posted an EPS of $1.99, beating estimates by $0.91. The quarter revenue came in at $4.89 billion, up 7.40% year-over-year, surpassing estimates by $60.13 million.
Barclays analyst Sarah James on December 21 raised the price target on Tenet Healthcare Corporation (NYSE:THC) to $87 from $81 and kept an Overweight rating on the shares.
Viking Global, a successful Wall Street hedge fund managed by billionaire Andreas Halvorsen, is one of the leading Tenet Healthcare Corporation (NYSE:THC) stakeholders, with a $222.8 million position in the company. Overall, 47 hedge funds were long Tenet Healthcare Corporation (NYSE:THC) in Q3 2021, up from 39 funds in the prior quarter.
Here is what Oakmark Funds has to say about Tenet Healthcare Corporation (NYSE:THC) in its Q3 2021 investor letter:
“Tenet may be best known as the second-largest public hospital chain in the U.S., but its largest business is outpatient acute care centers. In early 2020, investors fled the healthcare industry because of the great uncertainty that the pandemic presented. The early days of the pandemic were very hard on the hospital industry especially, but as the Covid-19 surge peaked and diminished, hospitals were able to schedule elective procedures and engage in profitable activities.”
You can also take a look at 10 Best Stocks Under $20 According to Jim Simons’ Fund and 10 Value Stocks in Joel Greenblatt’s Portfolio.
