In this article, we talk about the 5 best stocks to buy now according to billionaire Steve Cohen. In order to read our detailed analysis of Cohen’s hedge fund history and investment strategy, go directly to 10 Best Stocks To Buy Now According To Billionaire Steve Cohen.
5. FedEx Corporation (NYSE:FDX)
Point72 Asset Management’s Stake Value: $240.35 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.95%
Number of Hedge Fund Holders: 52
FedEx Corporation (NYSE:FDX) provides transportation, e-commerce and logistics services to clients in the United States and internationally. FDX shares were reported in the portfolios of 52 hedge funds at the end of the first quarter, down from 64 hedge funds a quarter earlier.
On June 30, Citi analyst Christian Wetherbee reiterated a Buy rating on FedEx Corporation (NYSE:FDX) shares along with a $270 price target, after the firm hosted its first analyst day in 10 years. He noted that FedEx’s targets, efficiency initiatives and long-term network goals are “quite positive and represent a meaningful shift in its thinking and vision.” The analyst is positive on the company’s outlook for free cash flow growth, noting that it beat expectations and should provide a “stable floor” for the shares even if earnings fall below estimates.
Here is what investment firm Artisan Partners had to say about FedEx Corporation (NYSE:FDX) in its Q3 2021 investor letter:
“Our weakest Q3 performers included FedEx. Shares of FedEx, a global shipping and logistics firm, were held back by disappointing business results as labor cost headwinds and air network disruptions overshadowed solid top-line trends. We think the company should be able to overcome these near-term issues. Importantly, FedEx has strong pricing power as it operates in a consolidated global shipping industry. In September, the company announced it would increase its shipping rates by an average of 5.9% across most of its services, which is the first time in several years that its annual increase would exceed 5.0%. The industry’s renewed pricing discipline is a welcome change, reflecting a broader commitment to earn better returns on invested capital. FedEx is also closer to fully integrating TNT, a European-focused parcel company it acquired in 2016. The market is beginning to incorporate a higher probability FedEx will fully integrate TNT, which will provide a significant boost to profits. The stock now trades at a near-trough multiple of less than 12X 2022 earnings, so we added to our position on weakness.”
4. argenx SE (NASDAQ:ARGX)
Point72 Asset Management’s Stake Value: $249.54 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.99%
Number of Hedge Fund Holders: 31
argenx SE (NASDAQ:ARGX) is a Dutch biotechnology firm which develops therapies for the treatment of autoimmune diseases. As of July 6, shares of the company have risen 17.15% in the last 12 months, and 4.23% so far in 2022.
On June 27, Stifel analyst Alex Thompson resumed coverage of argenx SE (NASDAQ:ARGX) with a ‘Buy’ rating and a $460 price target. The analyst holds that the firm’s efgartigimod has a “reasonable shot” at becoming a “mega-blockbuster” drug across a broad range of autoimmune indications, and thus maintains a bullish view on the company’s future prospects.
Steve Cohen’s hedge fund disclosed ownership of roughly 791,000 shares of the company at the end of the first quarter, worth $249.5 million and amounting to a 0.99% slice of its overall portfolio.
A detailed examination of the 900+ hedge funds in the database of Insider Monkey showed that 31 hedge funds were long argenx SE (NASDAQ:ARGX) at the end of March, with aggregate stakes worth $1.95 billion. This is up from 30 hedge funds in the previous quarter with $1.58 billion worth of positions in the biotech firm. With 1.25 million shares worth $395.7 million, VenBio Select Advisor was the leading Q1 shareholder of argenx SE (NASDAQ:ARGX).
In its Q4 2021 investor letter, investment firm Artisan Partners discussed the prospects of argenx SE (NASDAQ:ARGX). Here is what it said:
“Argenx is a commercial stage biotechnology company with an approved, first and potentially best-in-class therapy (FcRn) for autoimmune diseases—a potential $10 billion+ opportunity. The company received positive news in December, winning its first FDA approval for efgartigimod, which treats myasthenia gravis—a chronic neuromuscular condition—which we believe could generate up to $3 billion in sales for Argenx. In addition to the myasthenia gravis treatment, efgartigimod is in development for several additional autoimmune diseases with possibility for more diseases to be announced over time. We believe several of these have been significantly de-risked, positioning the company to expand the revenue opportunities for the product. Finally, the company’s earlierstage pipeline product, ARGX-117 (C2), has shown promising data in several severe autoimmune diseases. Like efgartigimod, ARGX-117 (C2) has broad disease application potential. Biotech stocks’ performance is highly correlated with the commercial launch of new drugs or the release of data validating clinical trials, and we see a highconviction scenario where shares of Argenx could move higher in 2022—phase 3 ITP (IV delivery) data is expected in 1H (~$1 billion market opportunity), and a successful study would further validate the company’s approach to shift clinical risk to earlier phase 2 studies.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Point72 Asset Management’s Stake Value: $285.26 million
Percentage of Point72 Asset Management’s 13F Portfolio: 1.13%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) was the third largest holding of Steve Cohen’s Point72 Asset Management at the end of the first quarter, with a $285.3 million stake which represented 1.13% of the fund’s total holdings. This highlighted a 32% reduction in holding over the previous quarter. As part of the larger market sell-off in tech, shares of Amazon.com, Inc. (NASDAQ:AMZN) have plummeted more than 38% in the last 12 months as of July 6.
On July 6, Amazon.com, Inc. (NASDAQ:AMZN) announced a partnership with food delivery firm Grubhub, owned by Dutch company Just Eat Takeaway.com. Amazon Prime Members will now get a free one-year trial of Grubhub+ and receive free delivery for eligible orders from thousands of restaurants across the United States. This agreement will give Amazon the option to buy around 2% of Grubhub shares, with the option to buy a further 13% stake if certain performance targets are met.
Wolfe Research analyst Deepak Mathivanan on June 29 assessed that Amazon.com, Inc. (NASDAQ:AMZN) “remains a top-idea to navigate a volatile macro” in the second half of 2022, and gave the stock an ‘Outperform’ rating with a revised price target of $140, down from $145.
Out of the 912 hedge funds in the Q1 database of Insider Monkey, 271 hedge funds reported bullish bets on Amazon.com, Inc. (NASDAQ:AMZN) shares, making the most popular stock among hedge funds. In contrast, 279 hedge funds were stakeholders in Amazon a quarter earlier.
Here is what Weitz Investment Management had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Amazon.com’s (NASDAQ:AMZN) stock was down modestly in the quarter, but opportunistic purchases helped the position contribute positively to the Fund. Our index short positions against ETFs tracking market indexes provided helpful ballast during the first quarter drawdown but were otherwise detractors for the fiscal year. During the quarter, we covered roughly 20% of our S&P 500 short and 50% of our Nasdaq 100 short at progressively lower prices. Among our long equities, we added materially to high-conviction holdings Amazon.com.”
2. Merck & Co., Inc. (NYSE:MRK)
Point72 Asset Management’s Stake Value: $293.90 million
Percentage of Point72 Asset Management’s 13F Portfolio: 1.16%
Number of Hedge Fund Holders: 84
Merck & Co., Inc. (NYSE:MRK) is one of the largest biopharmaceutical firms in the world. 84 hedge funds reported ownership of stakes in the company at the end of Q1 2022, with an aggregate value of $5.86 billion. This shows an upward trend from the previous quarter where 80 hedge funds held $3.78 billion worth of positions in the company.
The Wall Street Journal recently reported that the Covid-19 pill developed by Merck & Co., Inc. (NYSE:MRK) is more frequently prescribed by doctors in countries such as Italy, Japan and Australia, after reports highlighting safety concerns linked to rival Pfizer’s Paxlovid Covid-19 pill.
Cowen analyst Boris Peaker on June 27 maintained a ‘Market Perform’ rating on Merck & Co., Inc. (NYSE:MRK) shares and bumped the price target to $102 from $95. Addressing reports of Merck possibly acquiring Seagen (NASDAQ:SGEN), the analyst sees more cons than pros, and thinks the company should seek a less risky acquisition to achieve the diversification it needs.
Merck & Co., Inc. (NYSE:MRK) is also a prominent dividend stock, with 11 years of dividend increases and a $0.69 per share quarterly dividend, amounting to a 2.96% yield as of July 6.
ClearBridge Investments, an investment management firm, mentioned Merck & Co., Inc. (NYSE:MRK) in its Q4 2021 investor letter, stating:
“Other pharma companies are providing solutions as well. Merck’s antiviral pill molnupiravir is less effective than Pfizer’s, but it will be a helpful alternative for patients who cannot take Pfizer’s due to drug-drug interactions. Merck is also helping to manufacture Johnson & Johnson’s COVID-19 vaccine, which has less stringent storage requirements than the mRNA vaccines do.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Point72 Asset Management’s Stake Value: $355.32 million
Percentage of Point72 Asset Management’s 13F Portfolio: 1.41%
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) provides online travel, hotel reservation and other related services around the globe. Representing 1.41% of his total Q1 portfolio, Steve Cohen owned 151,000 shares of BKNG valued at more than $355 million.
On June 22, JMP Securities gave Booking Holdings Inc. (NASDAQ:BKNG) an unchanged ‘Outperform’ rating and a price target of $2,300, down from $2,750. Analyst Nicholas Jones sees the company as best positioned to benefit from a resurgence in demand, and notes that its geographical diversification and market share gains against rivals make it better positioned to navigate a tough financial climate.
Out of all the hedge funds tracked by Insider Monkey, 99 reported bullish bets on Booking Holdings Inc. (NASDAQ:BKNG) shares, up from 92 hedge funds in the previous quarter. Harris Associates, with a $1.56 billion position, was the most prominent shareholder of Booking Holdings Inc. (NASDAQ:BKNG) in the first quarter.
ClearBridge Investments discussed many stocks in its Q1 2022 investor letter, and Booking Holdings Inc. (NASDAQ:BKNG) happened to be one of them. The fund said:
“Other actions during the quarter included the sale of consumer name Booking Holdings (NASDAQ:BKNG). We sold Booking, the owner of online travel agencies Booking.com, Priceline and Kayak, due to its higher exposure to Europe where we believe a rebound in travel will be slowed by the spillover effects of the Ukraine invasion on consumer spending.”
You can also take a look at 10 Best Climate Change Stocks to Buy Now and 11 Best Housing/Homebuilder Stocks To Buy Now.
