In this article, we will discuss the 5 best stocks to buy according to Richard Mashaal’s Senvest Management. If you want to read our detailed analysis of Mashaal’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Richard Mashaal’s Senvest Management.
5. Silvergate Capital Corporation (NYSE: SI)
Mashaal’s Stake Value: $147,302,000
Percentage of Richard Mashaal’s 13F Portfolio: 4.63%
Number of Hedge Fund Holders: 28
Silvergate Capital Corporation (NYSE: SI) functions as a bank holding company for Silvergate Bank that provides banking products and services. The company was founded in 1988 and ranks fifth on the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. Silvergate shares have gained a whopping 658.45% over the last 12 months.
On July 20, Silvergate Capital Corporation (NYSE: SI) posted earnings for the second quarter of 2021. It reported earnings per share of $0.80, surpassing expectations by $0.29. The revenue for the second quarter of 2021 was $42.45 million, up 97.5% year over year, beating expectations by $6.02 million. On June 30, 2021, the company reported that there were 1,224 digital currency customers compared to 881 as on June 30, 2020. On June 14, Goldman Sachs analyst Will Nance initiated a coverage on Silvergate Capital with a “Neutral” rating and a $120 price target.
Senvest Management trimmed its stake in the stock by 15% to 1.04 million shares in the first quarter of 2021, worth $147.30 million. Hedge funds are loading up on Silvergate Capital Corporation (NYSE: SI), as Insider Monkey’s data shows that 28 hedge funds held stakes in the company in the first quarter of 2021, compared to 20 funds a quarter earlier.
4. Marriott Vacations Worldwide Corporation (NYSE: VAC)
Mashaal’s Stake Value: $155,921,000
Percentage of Richard Mashaal’s 13F Portfolio: 4.9%
Number of Hedge Fund Holders: 24
Marriott Vacations Worldwide Corporation (NYSE: VAC) is a pure-play public timeshare company. It was founded in 1984 and ranks fourth on the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. Shares of the company rallied 75.58% in the last 12 months, resulting in a $6.33 billion market capitalization.
On July 28, Marriott Vacations Worldwide Corporation (NYSE: VAC) declared earnings results for the first three months of 2021. The earnings per share was $0.87, missing market predictions by $0.02. However, the revenue over the period was $979 million, beating the estimates by $58.77 million. On June 7, Deutsche Bank analyst Chris Woronka upgraded Marriott Vacations to “Buy” from “Hold” with a price target of $209, up from $168.
Richard Mashaal’s Senvest Management holds 895,174 shares of Marriott Vacations Worldwide Corporation (NYSE: VAC), worth $155.92 million. Hedge fund sentiment increased for Marriott Vacations in the first quarter of 2021. Insider Monkey’s data shows that 24 elite hedge funds held stakes in the company in the first quarter of 2021, up from 21 funds a quarter earlier.
Baron Funds, in its first quarter 2021 investor letter, mentioned Marriott Vacations Worldwide Corporation (NYSE: VAC). Here is what the fund has to say about Marriott in its letter:
“Our Consumer Discretionary investments have fared much better than the industry as a whole and are continuing to enjoying the same month-over-month improvements. Marriott Vacations Worldwide Corp.’s new contract sales improved by 27% over the prior quarter, and reservations the second half of 2021 are running 8% above pre-COVID levels.
Shares of timeshare company Marriott Vacations Worldwide Corp. increased in the quarter on accelerated sales driven largely by increased demand in Orlando and Hawaii. The company’s announcement of its acquisition of Welk also helped boost its share price. We think added inventory and cost synergies from its Welk acquisition will help improve the company’s balance sheet and cash flow profile.”
3. Capri Holdings Limited (NYSE: CPRI)
Mashaal’s Stake Value: $193,251,000
Percentage of Richard Mashaal’s 13F Portfolio: 6.08%
Number of Hedge Fund Holders: 47
Capri Holdings Limited (NYSE: CPRI) is a multinational fashion holding company incorporated in 1981. It is placed third on the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. Capri shares have offered 269.83% in returns to investors over the course of the past 12 months.
On July 30, Capri Holdings Limited (NYSE: CPRI) posted earnings for the first quarter of 2021. It reported earnings per share of $1.42, beating market predictions by $0.62. In addition, the revenue for the first three months of 2021 was over $1.25 billion, up 177.2% YoY, beating the estimates by $130 million. On July 14, Goldman Sachs analyst Brooke Roach initiated a coverage on Capri Holdings with a “Neutral” rating and a $56 price target.
Richard Mashaal’s hedge fund increased its stake in Capri Holdings Limited (NYSE: CPRI) by 5% in the first quarter, ending the period with $193.25 million worth of the company’s shares. In addition, hedge fund sentiment increased for Capri Holdings in the first quarter. Insider Monkey’s data shows that 47 elite hedge funds held stakes in the company at the end of the first quarter, up from 42 funds a quarter earlier.
2. Tower Semiconductor Ltd. (NASDAQ: TSEM)
Mashaal’s Stake Value: $213,243,000
Percentage of Richard Mashaal’s 13F Portfolio: 6.71%
Number of Hedge Fund Holders: 19
Tower Semiconductor Ltd. (NASDAQ: TSEM) is an Israeli company that manufactures integrated circuits. The company was incorporated in 1993 and stands second on the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. Tower shares have gained 28.44% over the last 12 months.
On August 2, Tower Semiconductor Ltd. (NASDAQ: TSEM) posted earnings for the second quarter of 2021. It reported earnings per share of $0.34, in line with the previous. The revenue for the quarter was $362 million, up 16.8% YoY, beating the estimates by $2.26 million. For the third quarter the company expects the revenue to be $385 million, which is above the consensus estimate of $364.8 million.
In the first quarter of 2021, Senvest Management decreased its stake in Tower Semiconductor Ltd. (NASDAQ: TSEM) by 4% to 7.60 million shares. The company is also getting the attention of the smart money, as 19 hedge funds tracked by Insider Monkey reported owning stakes in the company in the first quarter of 2021, up from 17 funds a quarter earlier.
1. eBay Inc. (NASDAQ: EBAY)
Mashaal’s Stake Value: $347,915,000
Percentage of Richard Mashaal’s 13F Portfolio: 10.95%
Number of Hedge Fund Holders: 51
eBay Inc. (NASDAQ: EBAY) is an American multinational e-commerce corporation. The company was founded in 1995, and it tops the list of 10 best stocks to buy according to Richard Mashaal’s Senvest Management. eBay currently has a $50.01 billion market capitalization and was able to deliver a 24.95% return in the past 12 months.
On July 1, Piper Sandler analyst Thomas Champion raised the price target on eBay Inc. (NASDAQ: EBAY) to $81 from $71 and reiterated an “Overweight” rating on the shares after the company.
Senvest Management holds 5.68 million shares in eBay (NASDAQ: EBAY) worth over $347 million, representing 10.95% of their portfolio. The hedge fund has increased stakes in the company by 60% in the past few months.
ClearBridge Investments, in their second quarter 2021 investor letter, mentioned Sea Limited (NYSE: SE). Here is what the fund said:
“We have also been active in managing our growth exposure in the IT and Internet sectors. In addition to sales of several emerging growth names, we added a new emerging growth company in Sea Limited. Sea operates a leading global video game platform (Garena), the leading e-commerce platform in Southeast Asia (Shopee) and an emerging payments/digital banking segment (SeaMoney). While the company is investing heavily into e-commerce and payments, we like the fact that this growth is being funded by its highly profitable gaming segment. We see a long runway for growth across Sea’s businesses with multiple opportunities like e-commerce expansion in Latin America not fully factored into the valuation today. The company also has a well-respected management team that has successfully executed in expanding its total addressable market.”
You can also take a peek at 10 Best Stocks to Buy According to Chris James’ Engine No. 1 and 10 Best Stocks to Buy According to Bruce Berkowitz’s Fairholme Capital.
