In this article, we discuss 5 best stocks to buy according to Nelson Peltz’s Trian Partners. If you want to see more stocks in this selection, go see 9 Best Stocks to Buy According to Nelson Peltz’s Trian Partners.
5. Comcast Corporation (NASDAQ:CMCSA)
Trian Partners’ Stake Value: $1,006,168,000
Percentage of Trian Partners’ 13F Portfolio: 13.48%
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA) is a Pennsylvania-based media and technology company that functions via Cable Communications, Media, Studios, Theme Parks, and Sky segments. Nelson Peltz’s hedge fund owns approximately 20 million Comcast Corporation (NASDAQ:CMCSA) shares, worth over $1 billion, representing 13.48% of the total Q4 securities.
Comcast Corporation (NASDAQ:CMCSA) reported financial results for Q1 2022 on April 28. The EPS and revenue for the quarter came in at $0.86 and $31.01 billion respectively, above Street estimates by $0.05 and $602.53 million. Revenue for Q1 grew about 14% year-over-year.
On January 27, Comcast Corporation (NASDAQ:CMCSA) declared a $0.27 per share quarterly dividend, an 8% increase from its last dividend of $0.25. The dividend was distributed to shareholders on April 27. The company also expanded its share repurchase program authorization to $10 billion, effective as of January 1, 2022.
Pivotal Research analyst Jeffrey Wlodarczak on April 28 lowered the price target on Comcast Corporation (NASDAQ:CMCSA) to $57 from $62 and maintained a Buy rating on the shares. The analyst said that the company posted “overall solid in-line” Q1 results. However, regardless of the strong results and an “inexpensive valuation”, Comcast Corporation (NASDAQ:CMCSA) shares sold off after the results due to ongoing concerns about cable’s “long-term flywheel for growth slowing,” the analyst told investors in a research note.
Comcast Corporation (NASDAQ:CMCSA) was found in the public stock portfolios of 80 hedge funds at the end of the fourth quarter of 2021, compared to 75 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest shareholder of Comcast Corporation (NASDAQ:CMCSA), with 29.3 million shares worth $1.4 billion.
Here is what ClearBridge All Cap Growth Strategy has to say about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
4. Sysco Corporation (NYSE:SYY)
Trian Partners’ Stake Value: $1,009,679,000
Percentage of Trian Partners’ 13F Portfolio: 13.53%
Number of Hedge Fund Holders: 25
Nelson Peltz’s Trian Partners trimmed its Sysco Corporation (NYSE:SYY) stake by 4% in Q4 2021, holding a position worth over $1 billion. The stock accounts for 13.53% of the total investments for the fourth quarter. Sysco Corporation (NYSE:SYY) is a Texas-based multinational corporation that distributes food products and kitchen equipment to restaurants, hospitals, educational institutes, hotels, and industrial caterers.
On April 28, Sysco Corporation (NYSE:SYY) declared a $0.49 per share quarterly dividend, a 4.3% increase from its prior dividend of $0.47. The dividend is payable on July 22, to shareholders of record on July 1. The stock delivers a dividend yield of 2.13% as of April 28. The company has paid a quarterly dividend regularly since it went public in 1970, and it is a reliable dividend aristocrat.
Barclays analyst Jeffrey Bernstein raised the price target on Sysco Corporation (NYSE:SYY) to $100 from $90 and maintained an Overweight rating on the shares on April 25. The analyst believes restaurants are well positioned in a slowing economy. He expects consistent outperformance from more defensive franchise names.
Donald Yacktman’s Yacktman Asset Management held a notable stake in Sysco Corporation (NYSE:SYY), with 4.7 million shares worth $376.3 million. Overall, 25 hedge funds were bullish on the stock at the end of the fourth quarter of 2021.
3. Invesco Ltd. (NYSE:IVZ)
Trian Partners’ Stake Value: $1,182,320,000
Percentage of Trian Partners’ 13F Portfolio: 15.85%
Number of Hedge Fund Holders: 34
Invesco Ltd. (NYSE:IVZ) is a publicly traded investment firm that caters to retail, institutional, and high-net worth clients, as well as public entities, enterprises, unions, non-profit organizations, endowments, pension funds, and financial institutions. As of Q4 2021, Trian Partners boosted its Invesco Ltd. (NYSE:IVZ) stake by 24%, holding a total of 45.4 million shares, worth $1.18 billion, representing 15.85% of the 13F securities.
Invesco Ltd. (NYSE:IVZ) reported its fiscal Q1 2022 results on April 26, announcing earnings per share of $0.56, missing estimates by $0.06. The $1.25 billion revenue also fell short of analysts’ predictions by approximately $23 million.
On April 26, Invesco Ltd. (NYSE:IVZ) declared a $0.1875 per share quarterly dividend, a 10.3% increase from its prior dividend of $0.17. The dividend is payable on June 2, to shareholders of record on May 10. Invesco Ltd. (NYSE:IVZ) delivers a dividend yield of 3.89% as of April 28.
Deutsche Bank analyst Brian Bedell on April 28 maintained a Buy recommendation on Invesco Ltd. (NYSE:IVZ) but lowered the firm’s price target on the shares to $24 from $26 after it announced “good” Q1 results.
According to Insider Monkey’s Q4 data, 34 hedge funds were bullish on Invesco Ltd. (NYSE:IVZ), compared to 38 funds in the preceding quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a significant shareholder of the company, with 3.4 million shares worth approximately $80 million.
2. Janus Henderson Group plc (NYSE:JHG)
Trian Partners’ Stake Value: $$1,185,755,000
Percentage of Trian Partners’ 13F Portfolio: 15.89%
Number of Hedge Fund Holders: 26
Janus Henderson Group plc (NYSE:JHG) is a London-based asset management company that offers financial products to individual and institutional investors. Nelson Peltz’s Trian Partners purchased 28.2 million shares of Janus Henderson Group plc (NYSE:JHG) in the fourth quarter of 2021, worth $1.18 billion, representing 15.89% of the total 13F holdings.
On February 18, Deutsche Bank analyst Brian Bedell lowered the price target on Janus Henderson Group plc (NYSE:JHG) to $33 from $36 and kept a Hold rating on the shares. The analyst issued a mid-Q1 outlook for brokers and asset managers and continues to favor the “rate-sensitive stocks” for at least the next two quarters.
According to Insider Monkey’s Q4 data, Janus Henderson Group plc (NYSE:JHG) was found in the public stock portfolios of 26 hedge funds, compared to 24 funds in the prior quarter. John W. Rogers’ Ariel Investments held a significant stake in the company, with 3.35 million shares worth almost $141 million.
1. Ferguson plc (NYSE:FERG)
Trian Partners’ Stake Value: $2,022,084,000
Percentage of Trian Partners’ 13F Portfolio: 27.10%
Number of Hedge Fund Holders: 12
Ferguson plc (NYSE:FERG) is headquartered in Wokingham, the United Kingdom, offering plumbing and heating solutions to residential, commercial, infrastructure, and industrial markets. Ferguson plc (NYSE:FERG) is the largest holding in Trian Partners’ Q4 portfolio. The hedge fund owns 11.3 million shares of the company, worth more than $2 billion, representing 27.10% of the total portfolio.
On March 23, Ferguson plc (NYSE:FERG) declared a semi-annual dividend per share of $0.84. The dividend is payable on May 6, to shareholders of record on March 25. The company delivers a dividend yield of 1.87% as of April 28.
Truist analyst Keith Hughes on April 25 maintained a Buy rating on Ferguson plc (NYSE:FERG) but lowered the price target on the shares to $165 from $180, in order to reflect the impact of higher interest rates on valuations. The analyst believes that Ferguson plc (NYSE:FERG)’s business in all end markets is solid as demand remains strong. He added that he expects Ferguson plc (NYSE:FERG) to be one of the top performers in the coverage “regardless of what comes in the cycle”.
According to Insider Monkey’s fourth quarter database, 12 hedge funds were long Ferguson plc (NYSE:FERG), compared to 10 funds in the previous quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital is the biggest shareholder of the company, with a position worth $5.5 billion.
You can also take a look at 10 Biotech Stocks to Buy Today According to Ken Fisher’s Fisher Asset Management and 10 Tech Stocks to Buy Now According to Robert Pitts’ Steadfast Capital.
