In this article, we discuss the 5 best stocks to buy according to billionaire Steve Cohen. If you want to read our detailed analysis of Cohen’s history, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Billionaire Steve Cohen.
5. DXC Technology Company (NYSE: DXC)
Cohen’s Stake Value: $241,598,000
Percentage of Steve Cohen’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 28
DXC Technology Company (NYSE: DXC) is an American multinational corporation that supplies business-to-business (B2B) information technology services. The company was founded in 1959 and stands fifth on the list of 10 best stocks to buy according to billionaire Steve Cohen. DXC shares have gained a whopping 135.95% over the last 12 months.
On June 2, Wells Fargo upgraded DXC Technology Company (NYSE: DXC) from “Equal Weight” to “Overweight” with a price target of $48.00 from $25. On May 26, DXC Technology Company (NYSE: DXC) posted earnings for the fourth quarter of 2021. It reported earnings per share of $0.74, beating market predictions by $0.04. In addition, the revenue for the fourth quarter of 2021 was $4.39 billion, beating the estimates by $100 million.
DXC Technology Company (NYSE: DXC) accounts for about 1.09% of Point72 Asset Management‘s portfolio, as the hedge fund owns a $235 million stake in the company. Steve Cohen’s hedge fund increased its stake in the DXC Technology Company (NYSE: DXC) by 148% in the first quarter. Chicago-based investment firm Harris Associates is a leading shareholder in DXC, with 10.81 million shares worth more than $337 million.
4. Facebook, Inc. (NASDAQ: FB)
Cohen’s Stake Value: $241,598,000
Percentage of Steve Cohen’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 257
Facebook, Inc. (NASDAQ: FB) is an American multinational social-media company connecting people via mobile devices, personal computers, virtual reality headsets, and in-home devices. It was founded in 2004 and is ranked fourth on the list of 10 best stocks to buy according to billionaire Steve Cohen. Facebook currently has a $985.69 billion market capitalization and was able to deliver a 42.97% return in the past 12 months.
On July 15, Facebook, Inc. (NASDAQ: FB) announced plans to pay content creators a whopping $1 billion through 2022. This is part of the company’s plan to woo influencers and creators amid tough competition with TikTok, Snapchat and other social media platforms. On June 2, KGI Securities initiated a coverage on Facebook, Inc. (NASDAQ: FB) with an “Outperform” rating and a price target of $420.
At the end of the first quarter of 2021, Point72 Asset Management owned 820,283 shares in Facebook, Inc. (NASDAQ: FB) worth over $241 million. This represented 1.12% of the investment portfolio of Point72 Asset Management. There were 257 hedge funds in our database that held stakes in Facebook, Inc. (NASDAQ: FB) at the end of the first quarter of 2021, compared to 242 funds in the quarter earlier.
ClearBridge Investments, in their second quarter 2021 investor letter, mentioned Facebook, Inc. (NASDAQ: FB). Here is what the fund said:
“Facebook saw its antitrust case dismissed by the FTC in late June, an outcome that highlights the challenges regulators face in pursuing these cases. Investors are acutely aware of all the calls for change among the mega caps, but the legal framework around antitrust and privacy laws makes these difficult cases to win. For Facebook, we believe regulatory risk had been overpriced in the stock, while the potential probe into Apple and calls to open up its App Store to outside sellers could be a more material risk.”
3. Applied Materials, Inc. (NASDAQ: AMAT)
Cohen’s Stake Value: $255,171,000
Percentage of Steve Cohen’s 13F Portfolio: 1.19%
Number of Hedge Fund Holders: 78
Applied Materials, Inc. (NASDAQ: AMAT) provides manufacturing devices, services, and software to semiconductors and related industries. The company was founded in 1967, and it stands third on the list of 10 best stocks to buy according to billionaire Steve Cohen. Applied Materials shares have shown an impressive performance over the last 12 months, gaining 113.67% in value.
On June 10, Applied Materials, Inc. (NASDAQ: AMAT) announced a dividend of $0.24 per share, in line with the previous. On May 21, AMAT Susquehanna analyst Mehdi Hosseini raised the firm’s price target on Applied Materials, Inc. (NASDAQ: AMAT) to $170 from $155 and kept a “Positive” rating on the shares.
The hedge fund chaired by Steve Cohen holds 1.91 million shares in Applied Materials, Inc. (NASDAQ: AMAT) worth 255.17 million. The company is also getting the attention of the smart money, as 78 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 61 funds a quarter earlier.
2. Visa Inc. (NYSE: V)
Cohen’s Stake Value: $306,247,000
Percentage of Steve Cohen’s 13F Portfolio: 1.43%
Number of Hedge Fund Holders: 164
Visa Inc. (NYSE: V) is an American multinational financial services corporation. It was incorporated in 1958 and is ranked second on the list of 10 best stocks to buy according to billionaire Steve Cohen. Visa currently has a $524.65 billion market capitalization and was able to deliver a 27.75% return in the past 12 months.
On June 22, Visa Inc. (NYSE: V) and PayPal Holdings, Inc. (NASDAQ: PYPL) invested in Blockchain Capital’s $300 million fundraising. Visa Inc. stated that the association with Blockchain Capital will support Visa’s efforts to strengthen digital currencies’ role in the future. The company also announced that consumers spent above $1 billion of cryptocurrency internationally on goods and services via crypto-linked cards in the first half of 2021. On July 15, Evercore ISI analyst David Togut initiated a coverage on Visa Inc. (NYSE: V) with an “Outperform” rating and a price target of $286.
Point72 Asset Management holds more than 1.45 million shares in the firm worth over 306 million. This represents 1.42% of their portfolio.
ClearBridge Investments, in their first quarter 2021 investor letter, mentioned Visa Inc. (NYSE: V). Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
1. Western Digital Corporation (NASDAQ: WDC)
Cohen’s Stake Value: $360,964,000
Percentage of Steve Cohen’s 13F Portfolio: 1.68%
Number of Hedge Fund Holders: 58
Western Digital Corporation (NASDAQ: WDC) is a computer hard disk drive producer and data storage company. It was founded in 1970 and ranks first on the list of 10 best stocks to buy according to billionaire Steve Cohen. Western Digital shares have returned 52.60% to investors over the course of the past 12 months.
On June 14, Stifel analyst Patrick Ho raised the firm’s price target to $110 from $98 and kept a “Buy” rating on the shares. On April 29, Western Digital Corporation (NASDAQ: WDC) posted earnings for the third quarter of 2021. It reported earnings per share of $1.02, beating market predictions by $0.34. The revenue for the third quarter of 2021 was $4.14 billion, beating the estimates by $170 million.
As of the end of the first quarter, 58 hedge funds in Insider Monkey’s database of 866 funds held stakes in Western Digital Corporation (NASDAQ: WDC) compared to 44 funds in the quarter earlier. Cohen’s Point72 Asset Management is the company’s most significant stakeholder, with 5.41 million shares worth $360.96 million. The hedge fund increased its stake in the company by 1933% in the first quarter.
ClearBridge Investments, in its first quarter 2021 investor letter, mentioned Western Digital Corporation (NASDAQ: WDC). Here is what the fund has to say about Western Digital in its letter:
“Our high active share approach made the most difference in IT, where the portfolio’s holdings gained 4.5% compared to a loss for the benchmark. Results were led by our more cyclical positions in digital storage provider Western Digital.”
You can also take a peek at 10 Best Stocks to Buy According to Billionaire Brian Higgins and 10 Best Dividend Stocks to Buy According to Billionaire Michael Hintze
