In this article, we discuss 5 best stocks to buy according to Steven Baughman’s Divisar Capital. If you want to read our detailed analysis of Baughman’s history and hedge fund performance, go directly to 10 Best Stocks to Buy According to Steven Baughman’s Divisar Capital.
5. Lumentum Holdings Inc. (NASDAQ: LITE)
Baughman’s Stake Value: $19,227,000
Percentage of Steven Baughman’s 13F Portfolio: 6.49%
Number of Hedge Fund Holders: 31
Lumentum Holdings Inc. (NASDAQ: LITE) manufactures and sells optical and photonic equipment. The company was founded in 2015 and stands fifth on the list of 10 best stocks to buy according to Steven Baughman’s Divisar Capital. Lumentum currently has a $6.17 billion market capitalization.
On July 19, Needham analyst Alex Henderson raised the price target on Lumentum Holdings Inc. (NASDAQ: LITE) to $100 from $87 and kept a “Buy” rating on the shares. The hedge fund chaired by Steven Baughman owns 210,474 shares in Lumentum Holdings Inc. (NASDAQ: LITE) worth over $19 million, representing 6.49% of their portfolio.
4. Fabrinet (NYSE: FN)
Baughman’s Stake Value: $20,029,000
Percentage of Steven Baughman’s 13F Portfolio: 6.76%
Number of Hedge Fund Holders: 15
Fabrinet (NYSE: FN) provides outsourced process engineering and manufacturing services. It was incorporated in 1999 and is ranked fourth on the list of 10 best stocks to buy according to Steven Baughman’s Divisar Capital. The company currently has a market capitalization of $3.45 billion. It delivered a 28.58% return in the past 12 months.
On July 19, Needham analyst Alex Henderson raised the price target on Fabrinet (NYSE: FN) to $115 from $100 and kept a “Buy” rating on the shares. On May 3, Fabrinet announced earnings for the third quarter of 2021. It posted earnings per share of $1.00, beating the estimates by $0.04. The revenue over the period was $749.3 million, up 82.2% YoY, beating the estimates by $280.47 million.
Steven Baughman’s Divisar Capital holds 221,579 shares in Fabrinet (NYSE: FN) worth over $20 million, representing 6.76% of their portfolio. As of the end of the first quarter, 15 hedge funds in Insider Monkey’s database of 866 funds held stakes in Fabrinet compared to 13 funds in the quarter earlier.
3. Abercrombie & Fitch Co. (NYSE: ANF)
Baughman’s Stake Value: $20,035,000
Percentage of Steven Baughman’s 13F Portfolio: 6.77%
Number of Hedge Fund Holders: 20
Abercrombie & Fitch Co. (NYSE: ANF) operates as a specialty retailer through its subsidiaries. The company was founded in 1892 and stands third on the list of 10 best stocks to buy according to Steven Baughman’s Divisar Capital. Shares of Abercrombie surged 248.38% in the past 12 months.
On June 9, Jefferies initiated coverage on Abercrombie & Fitch Co. (NYSE: ANF), upgrading the stock to “Buy” from “Hold,” with a price target of $57. On May 26, Abercrombie reported its earnings for the first quarter of 2021. It posted earnings per share of $0.67, beating the estimates by $1.05. In addition, the revenue over the period was $781.41 million, beating the market predictions by $92.88 million.
The hedge fund chaired by Steven Baughman holds 583,937 shares in Abercrombie & Fitch Co. (NYSE: ANF) worth over $20 million. Divisar Capital stake in Abercrombie shares decreased by 34% in the past few months. Out of the hedge funds being tracked by Insider Monkey, Paradice Investment Management is a leading shareholder in Abercrombie with 2.69 million shares worth more than $124 million.
2. MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT)
Baughman’s Stake Value: $23,077,000
Percentage of Steven Baughman’s 13F Portfolio: 7.79%
Number of Hedge Fund Holders: 16
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) designs, produces and markets recreational powerboats through its subsidiaries. The company was founded in 1968 and ranked second on the list of 10 best stocks to buy according to Steven Baughman’s Divisar Capital. MasterCraft currently has a $497.83 million market capitalization and was able to deliver a 27.80% return in the past 12 months.
On June 28, MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) announced that it launched a new share repurchase program. The new authorization permits the business to repurchase up to $50 million in shares over the course of three years, which ends on June 24. The firm’s credit facility would give it more liquidity and financial flexibility to continue executing its consumer-centric growth plan. On May 13, Truist analyst Michael Swartz raised the price target on MasterCraft Boat to $32 from $26 and kept a “Hold” rating on the shares.
Divisar Capital holds 867,876 shares in MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT), worth over $23 million, representing 7.79% of their portfolio. The hedge fund has trimmed stakes in the firm by 15% in the past few months. There were 16 hedge funds in our database that held stakes in the company at the end of the first quarter of 2021, same as the number of hedge funds in the previous quarter. Royce & Associates is the company’s most significant stakeholder, with 1.39 million shares worth $36.56 million.
1. Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC)
Baughman’s Stake Value: $28,044,000
Percentage of Steven Baughman’s 13F Portfolio: 9.47%
Number of Hedge Fund Holders: 34
Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) creates, manufactures, and sells semiconductor assembly equipment and tools. The company was founded in 1951 and is placed first on the list of 10 best stocks to buy according to Steven Baughman’s Divisar Capital. Kulicke shares have returned 176.90% to investors over the course of the past 12 months.
On August 6, Craig-Hallum analyst Christian Schwab raised the price target on Kulicke & Soffa to $88 from $64 and maintained a “Buy” rating on the shares. In a research note, Schwab told investors that the business announced better-than-expected second-quarter results. On August 4, Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) reported its earnings for the second quarter of 2021. It posted earnings per share of $1.87, beating the estimates by $0.51. In addition, the revenue over the period was $424.3 million, beating the estimates by $24.36 million.
Steven Baughman’s Divisar Capital holds 571,042 shares in Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) worth over $28 million, representing 9.47% of their portfolio. The hedge fund has trimmed stakes in the firm by 19% in the past few months. Royce & Associates is a leading shareholder in Kulicke, with 2.80 million shares worth more than $171 million.
You can also take a peek at 10 Best Stocks to Buy According to John Paulson and Best Stocks to Buy According to Billionaire Barry Rosenstein’s Jana Partners
