In this article, we discuss the 5 best strong buy stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Strong Buy Stocks to Invest In.
5. The Williams Companies, Inc. (NYSE: WMB)
Number of Hedge Fund Holders: 34
The Williams Companies, Inc. (NYSE: WMB) stock has returned 35% to investors over the past year. It is placed fifth on our list of 15 best strong buy stocks to invest in. The firm markets energy infrastructure solutions and is based in Oklahoma. On July 6, the firm announced that it had finalized a joint venture with Crowheart Energy that involves consolidation of three legacy operating assets and more than 3,500 operating wells. The firm has a market cap of over $30 billion and posted more than $7.7 billion in revenue last year.
On July 21, investment advisory Raymond James maintained a Strong Buy rating on The Williams Companies, Inc. (NYSE: WMB) stock and raised the price target to $30 from $28. The stock is presently trading at around $25.5.
At the end of the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $475 million in The Williams Companies, Inc. (NYSE: WMB), down from 38 the preceding quarter worth $563 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Williams Companies, Inc. (NYSE: WMB) was one of them. Here is what the fund said:
“U.S. energy infrastructure company Williams Companies also performed well. Williams owns and operates natural gas pipelines and associated midstream assets in the U.S. Shares continued to rebound driven by the strong cyclical recovery, which has benefited energy stocks. Williams also delivered resilient fourth-quarter earnings despite energy demand pressure from COVID-19.”
4. Prologis, Inc. (NYSE: PLD)
Number of Hedge Fund Holders: 39
Prologis, Inc. (NYSE: PLD) is a San Francisco-based real estate investment trust focused on high growth markets. It is ranked fourth on our list of 15 best strong buy stocks to invest in. The company’s shares have returned 25% to investors over the past twelve months. On July 20, the firm posted earnings for the second quarter, reporting a revenue of more than $1 billion, up 8% compared to the revenue over the same period last year and in line with market estimates. The firm also raised guidance numbers for the fiscal year.
On July 21, investment advisory Raymond James maintained a Strong Buy rating on Prologis, Inc. (NYSE: PLD) stock and raised the price target to $143 from $138. The stock is presently trading at around $127.6.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm AEW Capital Management is a leading shareholder in Prologis, Inc. (NYSE: PLD) with 2.1 million shares worth more than $227 million.
In its Q1 2021 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Prologis, Inc. (NYSE: PLD) was one of them. Here is what the fund said:
“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”
3. D.R. Horton, Inc. (NYSE: DHI)
Number of Hedge Fund Holders: 50
D.R. Horton, Inc. (NYSE: DHI) is placed third on our list of 15 best strong buy stocks to invest in. The stock has returned 38% to investors over the past year. The firm markets homebuilding solutions and is based in Texas. On July 26, Wedbush upgraded the stock to Outperform from Neutral, raising the price target to $125 from $94, noting that pricing benefits and low mortgage rates were likely to act as growth catalysts for the trust. The company has a market of over $33 billion and posted more than $20 billion in revenue last year.
On July 23, investment advisory Raymond James upgraded D.R. Horton, Inc. (NYSE: DHI) stock to Strong Buy from Outperform with a price target of $110. The stock is presently trading at around $92.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Egerton Capital Limited is a leading shareholder in D.R. Horton, Inc. (NYSE: DHI) with 10.2 million shares worth more than $914 million.
2. Union Pacific Corporation (NYSE: UNP)
Number of Hedge Fund Holders: 75
Union Pacific Corporation (NYSE: UNP) is a transportation firm based in Nebraska. It is ranked second on our list of 15 best strong buy stocks to invest in. The company’s shares have offered investors returns exceeding 24% over the course of the past year. In earnings results for the second quarter, posted on July 22, the firm reported earnings per share of $2.72, beating market predictions by $0.17. The revenue over the period was $5.5 billion, up 25% year-on-year and beating estimates by $110 million.
On July 23, investment advisory Raymond James maintained a Strong Buy rating on Union Pacific Corporation (NYSE: UNP) stock and raised the price target to $265 from $260. The stock is presently trading at around $219.3.
At the end of the first quarter of 2021, 75 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Union Pacific Corporation (NYSE: UNP), up from 68 in the preceding quarter worth $3.5 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Union Pacific Corporation (NYSE: UNP) was one of them. Here is what the fund said:
“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”
1. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 89
UnitedHealth Group Incorporated (NYSE: UNH) stock has offered investors returns exceeding 37% over the course of the past twelve months. It is placed first on our list of 15 best strong buy stocks to invest in. The firm offers healthcare services and is headquartered in Minnesota. The company posted earnings for the second quarter on July 15, reporting earnings per share of $4.70, beating market estimates by $0.25. The revenue over the period was more than $71 billion, up 14% year-on-year.
On July 16, investment advisory Raymond James maintained a Strong Buy rating on UnitedHealth Group Incorporated (NYSE: UNH) stock and raised the price target to $515 from $435. The stock is presently trading at around $411.9.
Out of the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in UnitedHealth Group Incorporated (NYSE: UNH) with 3.2 million shares worth more than $1.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE: UNH) was one of them. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Consumer Discretionary Stocks to Buy Now.
