5 Best Stocks to Buy According to David Einhorn’s Greenlight Capital

1. ADT Inc. (NYSE: ADT)

Einhorn’s Stake Value: $23,546,000
Percent of David Einhorn’s 13F Portfolio: 1.63%
Number of Hedge Fund Holders: 16

ADT Inc. (NYSE: ADT) is a company that offers smart home solutions, automation, and security to retail and residential customers across the U.S. It has an extensive portfolio that consists of access control systems best suited for corporate use, video surveillance, fire detection, and suppression. It is placed first on our list of 10 best stocks to buy according to David Einhorn’s Greenlight Capital.

The company recently announced its latest quarterly dividend at $0.035 per share. ADT is optimistic about growth, especially in the market for smart doorbell cameras. The segment is expected to be worth $3.27 billion between 2021 and 2025. ADT had a $48 million net loss in Q1 2021, which is better than the $300 million net loss reported in Q1 2020. Lower interest expenses made a notable contribution to the lower net loss. Its net loss per diluted share was $0.06 in Q1 2021.

ADT Inc. (NYSE: ADT) has a partnership with Google, through which it installs home security products that include Google Nest Products. 

Miller Value Partners, in its Q4 2020 investor letter, said that ADT Inc. (NYSE: ADT) was one of the detractors for their portfolio in the fourth quarter of 2020. Here is what Miller Value Partners has to say about ADT Inc. in its letter:

“ADT Inc. (ADT) declined 3.5% during the quarter. The company reported strong 3Q results, which showed continued net subscriber growth with record customer retention (attrition of 12.9% versus 13.5% last year). The company reported revenue of $1.30B versus consensus of $1.25B with EBITDA of $564M versus $524M expected. The company updated full year guidance to revenue of $5.20-5.35B versus consensus of $5.24B and EBITDA of $2.15-2.225B versus $2.144B expected and free cash flow (FCF) guidance of $650-725M (raising the lower end by $25m from previous guidance). The company has set 2H21 as the time frame to launch their professionally installed and co-branded offering with Google (ahead of mid-2022 guide) and they announced that they are developing an ADT-owned, next-gen, residential technology platform allowing them to use their own proprietary software.”

You can also take a peek at 10 Best Stock Picks and Investments Of Billionaire Chamath Palihapitiya and 10 Best High-Yield Dividend Stocks to Buy According to Billionaire George Soros. 

Follow Insider Monkey on Twitter