In this article we will take a look at the 5 best stocks to buy according to Jim Simon’s Renaissance Technologies. If you want to see our detailed analysis of Simons’ history, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Simons’ Stake Value: $896.6 million
Percentage of Jim Simons’ 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational company that provides a platform for e-commerce, cloud computing, digital streaming services and artificial intelligence. Ranked fifth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.72 trillion.
Jim Simons’ Renaissance Technologies currently owns 260,655 shares of Amazon.com, Inc. (NASDAQ:AMZN), worth $896.6 million and accounting for 1.11% of the fund’s portfolio. By the end of the second quarter of 2021, 271 hedge funds out of the 873 tracked by Insider Monkey held stakes in Amazon.com, Inc. (NASDAQ:AMZN), worth roughly $60.49 billion. This is compared to 243 hedge funds in the previous quarter with a total stake value of approximately $50.4 billion.
Amazon.com, Inc. (NASDAQ:AMZN) last released its earnings report for the second quarter of 2021 on July 28, with reported earnings per share at $15.12, beating estimates of $12.29 by $2.83. The e-commerce company also reported quarterly revenues of $113.08 billion, falling short of the estimated revenues by $2.01 billion.
Out of the hedge funds being tracked by Insider Monkey, Martyn Taylor’s Crake Asset Management is a leading shareholder in Amazon.com, Inc. (NASDAQ: AMZN) with 68,500 shares worth more than $235 billion.
In the Q2 2021 investor letter of L1 Capital, the fund mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Simons’ Stake Value: $928.7 million
Percentage of Jim Simons’ 13F Portfolio: 1.15%
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) is a multinational technology company based in California that designs graphics processing units for gaming and professional purposes, alongside chip units and semiconductors. Ranked fourth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, NVIDIA Corporation (NASDAQ:NVDA) has a market capitalization of $541.50 billion.
Jim Simons’ Renaissance Technologies currently owns 1.16 million shares of NVIDIA Corporation (NASDAQ:NVDA), worth $928.7 million and accounting for 1.15% of the fund’s investment portfolio. By the end of the second quarter of 2021, 86 hedge funds out of the 873 tracked by Insider Monkey held stakes in NVIDIA Corporation (NASDAQ:NVDA), worth roughly $9.09 billion. This is compared to 80 hedge funds in the previous quarter with a total stake value of approximately $6.2 billion.
In the second quarter of 2021, NVIDIA Corporation (NASDAQ:NVDA) reported earnings per share of $0.55, beating estimates by $0.05. The company also reported revenues amounting to $3.87 billion, an increase of 49.90% on a year-over-year basis, surpassing forecast estimates by $210.22 million.
On September 17, BofA analyst Vivek Arya raised the firm’s price target on NVIDIA Corporation (NASDAQ:NVDA) to $275 from $260 and kept a Buy rating on the shares, noting the important role of semiconductors in the global economy.
In the Q2 2021 investor letter of Harding Loevner, the fund mentioned NVIDIA Corporation (NASDAQ:NVDA). Here is what the fund said:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
3. Zoom Video Communications, Inc. (NASDAQ:ZM)
Simons’ Stake Value: $1.03 billion
Percentage of Jim Simons’ 13F Portfolio: 1.28%
Number of Hedge Fund Holders: 59
Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company based in California. The company provides a videotelephony platform and online chat services that are used for teleconferencing, telecommuting, and social interactions. Ranked third on our list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Zoom Video Communications, Inc. (NASDAQ:ZM) has a market capitalization of $81.08 billion.
At present, Jim Simons’ Renaissance Technologies holds 2.66 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM), amounting to $1.03 billion in worth and representing 1.28% of the fund’s portfolio. By the end of the second quarter of 2021, 59 hedge funds out of the 873 tracked by Insider Monkey held stakes in Zoom Video Communication, Inc. (NASDAQ:ZM), worth $8.48 billion. This is compared to 54 hedge funds in the previous quarter with a total stake value of approximately $5.67 billion.
For the second quarter of 2021, Zoom Video Communications, Inc. (NASDAQ:ZM) reported earnings per share of $0.92, crossing estimates by $0.47. The company also reported revenues amounting to $663.52 million, an increase of 355.01% on a year-over-year basis, surpassing forecast estimates by $163.16 million.
Out of the hedge funds being tracked by Insider Monkey, Scotland-based investment firm Aubrey Capital Management is a leading shareholder in Zoom Video Communications, Inc. (NASDAQ:ZM) with 16,200 shares worth more than $6.26 billion.
Artisan Partners, in their first-quarter 2021 investor letter, mentioned Zoom Video Communications, Inc. (NASDAQ: ZM), and shared their insights on the company. Here’s what they said:
“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
2. VeriSign, Inc. (NASDAQ:VRSN)
Simons’ Stake Value: $1.1 billion
Percentage of Jim Simons’ 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 41
VeriSign, Inc. (NASDAQ:VRSN) is a Virginia-based internet company that operates a diverse network infrastructure, and provides authentication and verification of businesses throughout the world. Ranked second on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, VeriSign, Inc. (NASDAQ:VRSN) has a market capitalization of $23.93 billion.
According to the recent 13F Filings, Jim Simons’ Renaissance Technologies holds more than 4.8 million shares of VeriSign, Inc. (NASDAQ:VRSN), amounting to $1.1 billion in worth and representing 1.37% of the fund’s portfolio. By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in VeriSign, Inc. (NASDAQ:VRSN), worth $6.1 billion. This is compared to 42 hedge funds in the previous quarter with a total stake value of approximately $5.63 billion.
On July 22, VeriSign, Inc. (NASDAQ:VRSN) issued its earnings report for the second quarter of 2021. It posted earnings per share of $1.31, missing the estimates by $0.02. However, the reported revenue over the period was $329.4 million, beating the market expectations by $0.53 million.
On April 23, Citi analyst Nicholas Jones raised the firm’s price target on VeriSign, Inc. (NASDAQ:VRSN) to $245 from $235 and kept a Neutral rating on the shares.
Out of the hedge funds being tracked by Insider Monkey’s database, Warren Buffett’s Berkshire Hathaway is a leading shareholder in VeriSign, Inc. (NASDAQ:VRSN) with over 12.8 million shares worth more than $2.9 billion.
1. Novo Nordisk A/S (NYSE:NVO)
Simons’ Stake Value: $2.02 billion
Percentage of Jim Simons’ 13F Portfolio: 2.52%
Number of Hedge Fund Holders: 20
Novo Nordisk A/S (NYSE:NVO) is a multinational pharmaceutical and biotechnology company based in Denmark that focuses on the provision of diabetes medication and hormone replacement therapy (HRT). The company has a market capitalization of $176.71 billion and is ranked first on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies.
According to the recent 13F Filings, Jim Simons’ Renaissance Technologies holds more than 24 million shares of Novo Nordisk A/S (NYSE:NVO), amounting to $2.02 billion in worth and accounting for 2.52% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Novo Nordisk A/S (NYSE:NVO), worth $3.56 billion, down from 23 hedge funds in the preceding quarter with a total stake value of approximately $2.92 billion.
The company released its quarterly earnings report for the second quarter of 2021 on August 4, with reported earnings per share at $0.84, crossing estimates by $0.08. Additionally, the company reported revenues of $5.26 billion, beating estimated revenues by $89.35 million.
Out of the hedge funds being tracked by Insider Monkey’s database, Washington-based investment firm, Fisher Asset Management is one of the leading shareholders in Novo Nordisk A/S (NYSE:NVO) with over 16 million shares worth more than $1.34 billion.
In the Q2 2021 investor letter of LRT Capital, the fund mentioned Novo Nordisk A/S (NYSE:NVO). Here is what the fund had to say:
“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. Millions of people need daily injections of insulin to stay alive50, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.
The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.
Shares are +34.43% year-to-date and +40.92% over the past twelve months.”
You can also take a look at 10 Best Undervalued Dividend Stocks to Buy Now and 10 Stocks that Released Solid Quarterly Earnings
