In this article, we discuss the 5 best stocks to buy according to DE Shaw. If you want to see more top holdings of the hedge fund, check out 10 Best Stocks to Buy According to DE Shaw.
5. Walmart Inc. (NYSE:WMT)
DE Shaw’s Stake Value: $837,124,000
Percentage of DE Shaw’s 13F Portfolio: 0.78%
Number of Hedge Fund Holders: 60
Walmart Inc. (NYSE:WMT) is an American retailer that operates supercenters, supermarkets, hypermarkets, discount stores, membership-only warehouse clubs, and ecommerce websites. On February 17, Walmart Inc. (NYSE:WMT) declared a $0.56 per share quarterly dividend, a 1.8% increase from its prior dividend of $0.55. The dividend was distributed on April 4 and May 21. The next dividend payment is due on September 6, to shareholders of record on August 12. 2022 marks the 49th consecutive annual dividend increase by the company and it is well on its way to becoming a dividend king.
Securities filings for Q1 2022 reveal that DE Shaw strengthened its hold on Walmart Inc. (NYSE:WMT) by 55%. The hedge fund held 5.6 million Walmart Inc. (NYSE:WMT) shares worth over $837 million, representing 0.78% of the total 13F securities.
On July 7, Oppenheimer analyst Rupesh Parikh removed Walmart Inc. (NYSE:WMT) as a Top Pick, while keeping an Outperform rating on the shares with a price target of $165. The analyst cited inventory conditions and markdown risks, which varied greatly by location. The analyst observed that cost controls and solid grocery share gains offset these headwinds.
Among the hedge funds tracked by Insider Monkey, 60 funds were long Walmart Inc. (NYSE:WMT) at the end of Q1 2022, compared to 63 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the biggest position holder in the company, with 15.4 million shares worth roughly $2.3 billion.
4. Tesla, Inc. (NASDAQ:TSLA)
DE Shaw’s Stake Value: $1,185,119,000
Percentage of DE Shaw’s 13F Portfolio: 1.10%
Number of Hedge Fund Holders: 80
Tesla, Inc. (NASDAQ:TSLA) was incorporated in 2003 and is headquartered in Austin, Texas. The company manufactures and sells electric vehicles and battery storage systems in the United States, China, and internationally. In the first quarter of 2022, DE Shaw held over one million Tesla, Inc. (NASDAQ:TSLA) shares, worth $1.18 billion, representing 1.10% of the total portfolio.
On July 14, Morgan Stanley analyst Adam Jonas reiterated an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) but lowered the price target on the shares to $1,150 from $1,200. He is making “material cuts” to forecasts across his autos and mobility coverage, especially in FY23, to factor in decreasing growth and higher credit headwinds, added the analyst.
Among the hedge funds tracked by Insider Monkey, 80 funds were long Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter of 2022, compared to 91 funds in the prior quarter. ARK Investment Management is a prominent shareholder of the company, with roughly 1.6 million shares worth $1.71 billion.
Here is what GMO LLC has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:
“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
DE Shaw’s Stake Value: $1,340,244,000
Percentage of DE Shaw’s 13F Portfolio: 1.25%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) has been part of the DE Shaw since the fourth quarter of 2010, with a few breaks over the years. In the first quarter of 2022, the hedge fund boosted its position in the company by 28%, holding 411,124 shares worth $1.34 billion, representing 1.25% of the 13F portfolio.
After Amazon.com, Inc. (NASDAQ:AMZN) posted record Prime Day sales, Morgan Stanley analyst Brian Nowak estimated Prime Day revenue increased 19% year-over-year to $4.6 billion, which was 12% ahead of his earlier expectations. The analyst said an acceleration compared to 8% Prime Day growth in 2021 gave him higher confidence in Q3, and maintained an Overweight rating and a $175 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares on July 16.
Among the hedge funds tracked by Insider Monkey, 271 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q1 2022, compared to 279 funds in the last quarter. Skye Global Management is a notable position holder in the company, with 740,500 shares worth $2.4 billion.
Here is what Weitz Investment Management Partners III Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Amazon.com’s (NASDAQ:AMZN) stock was down modestly in the quarter, but opportunistic purchases helped the position contribute positively to the Fund. Our index short positions against ETFs tracking market indexes provided helpful ballast during the first quarter drawdown but were otherwise detractors for the fiscal year. During the quarter, we covered roughly 20% of our S&P 500 short and 50% of our Nasdaq 100 short at progressively lower prices. Among our long equities, we added materially to high-conviction holdings Amazon.com.”
2. Microsoft Corporation (NASDAQ:MSFT)
DE Shaw’s Stake Value: $1,402,277,000
Percentage of DE Shaw’s 13F Portfolio: 1.31%
Number of Hedge Fund Holders: 259
DE Shaw has been a long-term shareholder of Microsoft Corporation (NASDAQ:MSFT). The hedge fund first invested in Microsoft Corporation (NASDAQ:MSFT) back in Q4 2010, and in the first quarter of 2022, DE Shaw owned 4.5 million shares of the company worth $1.40 million, representing 1.31% of the total 13F portfolio.
On July 15, Microsoft Corporation (NASDAQ:MSFT) reported that it has responded to the Federal Trade Commission’s second request in its planned $69 billion acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI). Wall Street analysts have a ‘Buy’ consensus rating on Microsoft Corporation (NASDAQ:MSFT), with an average price target of $345.84.
According to Insider Monkey’s data, 259 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the conclusion of March 2022, compared to 262 funds in the last quarter. Fisher Asset Management is the leading shareholder of the company, with 27.8 million shares worth about $8.6 billion.
Here is what Carillon Clarivest Capital Appreciation Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
1. Apple Inc. (NASDAQ:AAPL)
DE Shaw’s Stake Value: $1,558,119,000
Percentage of DE Shaw’s 13F Portfolio: 1.45%
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) is an American multinational consumer electronics company. Wall Street analysts have a consensus ‘Buy’ rating on Apple Inc. (NASDAQ:AAPL), with an average price target of $182.20. Apple Inc. (NASDAQ:AAPL) is the biggest holding of DE Shaw, and the hedge fund boosted its position in the company by 34%. DE Shaw owned about 9 million shares worth $1.5 billion, representing 1.45% of the total 13F portfolio.
TF International Securities analyst Ming-Chi Kuo said on July 14 that demand for Apple Inc. (NASDAQ:AAPL)’s iPhone 14 is “continuing to increase” among distributors, retailers, and scalpers. Bank of America recently observed that Apple Inc. (NASDAQ:AAPL) had reduced the trade-in prices for its iPhone, iPad, Apple Watch, Mac earlier this month, which suggests “strong demand”.
Among the hedge funds tracked by Insider Monkey, 131 funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of March 2022, compared to 134 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company, with approximately 891 million shares worth $155.5 billion.
Here is what Weitz Investment Management Partners III Opportunity Fund has to say about Apple Inc. (NASDAQ:AAPL) in its Q1 2022 investor letter:
“Changes to Apple’s (NASDAQ:AAPL) mobile operating system have temporarily impacted growth of Meta’s advertising business just as the company’s investments in Instagram’s “Reels” feature ramp up ahead of full monetization. (Shareholders can read research analyst Jon Baker’s in-depth discussion of current events impacting Meta and reasons why we’re optimistic about the company in our recent Analyst Corner feature.) CoreCard (formerly Intelligent Systems) struggled early in the fiscal year to hire and train staff to handle growth from new and existing clients. Lately, Apple-related headlines also took a bite out of CoreCard shares, as reports suggest Apple is exploring a transition of its credit card and other financial services to internally built solutions. Such a move would create revenue headwinds for its partners, which CoreCard is widely believed to be. We are monitoring these developments and stress-testing our model accordingly.”
You can also take a look at 10 Best Stocks to Buy For The Long Term According to ValueAct Capital and 10 Latest Stocks to Consider in the Portfolio of Nancy Pelosi.
