In this article, we discuss 5 best stocks to buy for beginners right now. If you want to see more stocks that might be suitable for investors just starting their trading journey, check out 10 Best Stocks To Buy For Beginners Right Now.
5. Nomad Foods Limited (NYSE:NOMD)
Share Price as of April 7: $22.10
Number of Hedge Fund Holders: 23
Nomad Foods Limited (NYSE:NOMD) is based in Feltham, United Kingdom, offering frozen food products to supermarkets and food retail chains in the United Kingdom, Italy, Germany, France, Sweden, Austria, Norway, Spain, and other European countries. Priced at $22.10 as of April 7, Nomad Foods Limited (NYSE:NOMD) is one of the most popular stocks among beginner investors.
As part of a broader research note on Packaged Foods, UBS analyst Cody Ross initiated coverage of Nomad Foods Limited (NYSE:NOMD) with a Buy rating and a $26 price target on March 30. The analyst observed that consumers are currently “the healthiest they have been in some time”, with high net worths and rising wages. In this inflationary backdrop, the analyst prefers companies that have greater pricing power and can increase margins by innovation and brand equity.
According to Insider Monkey’s fourth quarter database, 23 hedge funds placed long bets on Nomad Foods Limited (NYSE:NOMD), with combined stakes valued at approximately $294 million. Renaissance Technologies held the biggest position in the company, with 4.4 million shares worth $112.5 million.
Here is what FAM Funds has to say about Nomad Foods Limited (NYSE:NOMD) in its Q4 2020 investor letter:
“The proceeds(from a sold equity) were primarily invested into a new idea — Nomad Foods (NOMD), a producer of branded frozen food products in Europe. Product categories include fish, vegetables, and meat substitutes. Management’s plan is to continually improve the brands they control while seeking opportunities to buy and upgrade similar companies. In the past, key members of senior management pursued this strategy at other businesses and created significant returns for shareholders. As COVID-19 rolled across Europe, Nomad became one of the few beneficiaries of the pandemic as consumers stopped visiting restaurants and increasingly ate at home.”
4. BP p.l.c. (NYSE:BP)
Share Price as of April 7: $29.86
Number of Hedge Fund Holders: 26
Headquartered in London, the United Kingdom, BP p.l.c. (NYSE:BP) is an energy company that operates via Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. Deutsche Bank analyst James Hubbard on March 23 maintained a Buy rating on BP p.l.c. (NYSE:BP) but lowered the firm’s price target on the shares to 450 GBp from 455 GBp.
On March 25, BP p.l.c. (NYSE:BP) announced its plans to spend £1 billion to expand its electric vehicle charging stations in the United Kingdom over the next 10 years. This initiative will meet the increasing demand for clean power, create multiple jobs in the UK economy, and help the country’s transition to low carbon vehicles for both individuals and commercial purposes.
In 2021, BP p.l.c. (NYSE:BP)’s full-year revenue came in at $156.7 billion, compared to $105.6 billion in the previous year. The $7.5 billion net income in 2021 strongly rebounded from the net loss of $20.3 billion in 2020.
BP p.l.c. (NYSE:BP) declared a $0.3276 per share quarterly dividend on February 10, in line with previous. The dividend was paid on March 25, to shareholders of the company as of February 18. BP p.l.c. (NYSE:BP)’s dividend yield on April 7 stood at 4.30%.
According to the fourth quarter database of Insider Monkey, 26 hedge funds were long BP p.l.c. (NYSE:BP), compared to 29 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the biggest position holder in the company, with 13.7 million shares worth more than $367 million.
3. BELLUS Health Inc. (NASDAQ:BLU)
Share Price as of April 7: $8.07
Number of Hedge Fund Holders: 26
BELLUS Health Inc. (NASDAQ:BLU) is a Canadian clinical stage biopharmaceutical company that develops treatments for refractory chronic cough and similar cough hypersensitivity issues. The stock has climbed close to 36% in the last six months.
On February 24, H.C. Wainwright analyst Andrew Fein raised the price target on BELLUS Health Inc. (NASDAQ:BLU) to $16 from $14 and reiterated a Buy rating on the shares. With the recent discontinuation of Bayer’s elipixant, a cough medication, and Shionogi’s sivopixant failing in a clinical trial, BELLUS Health Inc. (NASDAQ:BLU)’s BLU-5937 has more chances of commercial success. The product has tested well for tolerability and has less market rivals, the analyst told investors in a bullish thesis.
Hedge fund sentiment around BELLUS Health Inc. (NASDAQ:BLU) was largely positive. Among the hedge funds tracked by Insider Monkey, 26 funds were bullish on BELLUS Health Inc. (NASDAQ:BLU) at the end of December 2021, up from 17 funds in the prior quarter. Peter Kolchinsky’s RA Capital Management is the biggest stakeholder of the company, with 10.2 million shares worth $82.3 million.
2. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Share Price as of April 7: $27.06
Number of Hedge Fund Holders: 27
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) was founded in 1993 and is headquartered in San Diego, California. The company develops and sells small molecule drugs that treat central nervous system disorders. The shares have gained over 57% in the last six months.
On March 16, Canaccord Genuity analyst Sumant Kulkarni upgraded ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) to Buy from Hold and raised the price target to $31 from $30. The company recently announced that the FDA granted an action date of August 4 for its resubmitted application for Nuplazid, a supplemental new drug for Alzheimer’s, the analyst told investors in a research note. He likes ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s risk/reward ahead of the Nuplazid decision.
Among the hedge funds tracked by Insider Monkey, 27 funds reported owning stakes in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) at the end of Q4 2021, compared to 19 funds in the last quarter. The total stakes held in the fourth quarter amounted to $1.35 billion. Julian Baker and Felix Baker’s Baker Bros. Advisors is the leading stakeholder of the company, with approximately $42 million shares worth over $978 million.
1. The AES Corporation (NYSE:AES)
Share Price as of April 7: $25.23
Number of Hedge Fund Holders: 41
The AES Corporation (NYSE:AES) is a Virginia-based power generation and utility company that caters to industrial, residential, commercial, and government customers. The stock has gained more than 16% over the last month.
Citi analyst Ryan Levine on March 22 initiated coverage of The AES Corporation (NYSE:AES) with a Buy rating and a $27 price target. The company’s power assets in California will have extended lives and its renewable development business will gain market share, the analyst told investors. Higher power prices will also be favorable for The AES Corporation (NYSE:AES).
On February 24, The AES Corporation (NYSE:AES) reported earnings for the fourth quarter, posting an EPS of $0.45, topping market estimates by $0.02. Revenue over the period jumped 8.20% year-over-year to $2.77 billion, outperforming analysts’ predictions by $143.29 million.
The AES Corporation (NYSE:AES) declared on February 25 a $0.158 per share quarterly dividend, in line with previous. The dividend will be paid on May 13, for shareholders of record on April 29. The stock delivers a dividend yield of 2.52% as of April 7.
William B. Gray’s Orbis Investment Management is the biggest shareholder of The AES Corporation (NYSE:AES), with 14.2 million shares worth $347 million. Overall, 41 hedge funds were bullish on the stock at the end of December 2021.
You can also take a look at 10 Dividend Paying Consumer Defensive Stocks and 10 Most Profitable Biotech Companies in the World.
