In this article, we discuss 5 best US stocks to buy now. If you want to see some more stocks from this list, click 12 Best US Stocks to Buy Now.
5. Centennial Resource Development, Inc. (NASDAQ:CDEV)
Number of Hedge Fund Holders: 28
Centennial Resource Development, Inc. (NASDAQ:CDEV) is a Colorado-based independent oil and natural gas company with interests in properties across the Delaware Basin, Reeves County, West Texas, Lea County, and New Mexico.
The company published its fourth quarter results on February 23, posting GAAP earnings per share of $0.51, beating estimates by $0.23. The $316.42 million revenue increased 113.69% year-over-year, surpassing market consensus estimates by approximately $31 million.
On April 7, Piper Sandler analyst Mark Lear upgraded Centennial Resource Development, Inc. (NASDAQ:CDEV) to Overweight from Neutral, lifting the price target to $13 from $10. With Russian oil and product exports off the market, Piper Sandler’s Energy Macro team views the United States as one of the few places to deliver long-term supply growth, the analyst told investors. He thinks that limited supply ultimately drives material upside to crude prices, which has positive implications for companies like Centennial Resource Development, Inc. (NASDAQ:CDEV), despite the outperformance in 2022.
John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading stakeholders of Centennial Resource Development, Inc. (NASDAQ:CDEV), with 4.35 million shares worth $26 million. Overall, 28 hedge funds held long positions in the stock at the end of December 2021.
4. Globus Medical, Inc. (NYSE:GMED)
Number of Hedge Fund Holders: 29
Globus Medical, Inc. (NYSE:GMED) is a medical device company that produces healthcare solutions and implants for patients with musculoskeletal disorders, spine problems, and orthopedic trauma. The company distributes its products in the United States and international markets.
On March 4, Globus Medical (NYSE:GMED) expanded its share repurchase program by authorizing the buy back of $200 million in additional common stock. The company now has $295 million available for repurchases. Its market cap of $7.75 billion has increased 17% as compared to last year.
Wells Fargo analyst Vik Chopra on March 28 initiated coverage of Globus Medical (NYSE:GMED) with an Overweight rating and an $80 price target. The analyst cited the company’s consecutively strong EBITDA margin profile, consistent above-market spine growth and share gains, and its unique selling advantage as one of the two organizations to offer a spine robot. With new offerings in its Spine segment, the analyst expects 150 bps of growth in 2023.
According to the fourth quarter database of Insider Monkey, 29 hedge funds were bullish on Globus Medical (NYSE:GMED), with combined stakes valued at $231.3 million. Brian Ashford-Russell and Tim Woolley’s Polar Capital owned the biggest position in the company, holding 754,204 shares worth $54.4 million.
Here is what Madison Small Cap Fund has to say about Globus Medical, Inc. (NYSE:GMED) in their Q4 2020 investor letter:
“Healthcare continued its streak of underperformance in the fourth quarter. The biotech industry component of the Russell 2000 was up 34% for the quarter and 53% for the year. While we have become more open to investing in this space where appropriate, we prefer molecular diagnostics given less regulatory risk and better revenue diversification. With the new administration comes a shift in healthcare philosophy. We believe that further access to care and coverage expansion will benefit some parts of the sector. However, the risk of further reimbursement cuts, particularly in pharmaceuticals, will bear monitoring.
Our favorite healthcare stock for 2021 is Globus Medical, a provider of spine implants and robotic solutions in the orthopedic industry. This stock has been a disappointing investment in the three years that we have held it. Though, the company itself has executed extremely well. We think this name is a “coiled spring” in a reopening scenario as management played aggressive offense in 2020. They aggressively have grown their sales force and did not hunker down during the pandemic. Recent quarters suggest that the company has taken considerable share, and this should bear fruit as surgical volumes resume in 2021 and 2022.”
3. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 30
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) was founded in 2008 and is headquartered in Boston, Massachusetts. The company develops a platform for cell programming, serving the specialty chemicals, agriculture, food, consumer products, and pharmaceuticals sectors. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) reported a fourth quarter revenue of $148.49 million, above market consensus by $53.63 million.
On April 5, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) and Twist Bioscience Corporation (NASDAQ:TWST) announced a new agreement that expands the scope of the collaboration between the organizations in the synthetic biology space. This four-year agreement includes an increased commitment by Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to purchase products from Twist, which will allow Ginkgo to meet its anticipated growth targets.
BTIG analyst Mark Massaro maintained a Buy rating on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) on March 31 but slashed the firm’s price target on the shares to $6 from $12. The analyst noted that Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s fourth quarter results exceeded expectations and the company is experiencing stronger demand now than at any other time in the past. While Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s platform will be used to help with food security and higher crop yield, his price target cut reflects the broad selloff in biotech.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 30 funds placed long calls on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), with collective stakes amounting to $4.2 billion. This is compared to 32 funds in the prior quarter, holding stakes in Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) worth $5.6 billion.
2. The AZEK Company Inc. (NYSE:AZEK)
Number of Hedge Fund Holders: 31
The AZEK Company Inc. (NYSE:AZEK) is an Illinois-based firm that manufactures and sells construction products for residential, commercial, and industrial customers in the United States.
Credit Suisse analyst Daniel Oppenheim initiated coverage of The AZEK Company Inc. (NYSE:AZEK) on April 5 with an Outperform rating and a $29 price target. The strong housing market and confidence in home values should increase the growth for building products companies, the analyst told investors in a research note. According to Oppenheim, The AZEK Company Inc. (NYSE:AZEK)’s EBITDA growth should result in further deleveraging.
On February 3, The AZEK Company Inc. (NYSE:AZEK) published its Q4 results, posting earnings per share of $0.18, above consensus by $0.02. Revenue over the period came in at approximately $260 million, up 22.34% from the prior-year quarter, topping market estimates by $3.01 million.
Insider Monkey’s fourth quarter database suggests that 31 hedge funds were bullish on The AZEK Company Inc. (NYSE:AZEK), with combined stakes valued at $418.5 million. Anand Parekh’s Alyeska Investment Group held the largest position in the company, with 1.5 million shares worth more than $70 million.
Here is what Baron Funds has to say about The AZEK Company Inc. (NYSE:AZEK) in its Q2 2021 investor letter:
“The AZEK Company Inc.: AZEK is a leading manufacturer of outdoor, non-wood building products including decking, railing, trim, and other leading outdoor products. 95% of cash flow is generated from the U.S. residential housing market. We believe the company has a compelling multi-year strategic growth plan that should result in strong share price appreciation in the next few years.”
1. Denbury Inc. (NYSE:DEN)
Number of Hedge Fund Holders: 32
Denbury Inc. (NYSE:DEN) was incorporated in 2003 and is headquartered in Plano, Texas, operating as an independent energy company in the Gulf Coast and Rocky Mountain regions. The company also owns interests in multiple oil and natural gas properties located in the United States.
Roth Capital analyst John White upgraded Denbury Inc. (NYSE:DEN) to Buy from Neutral ahead of the company’s earnings report, citing higher crude oil futures and lower debt levels for raising the price target on the shares to $87.75 from $78.75. The company’s balance sheet is “in great shape” and he sees further longer-term upside from Denbury Inc. (NYSE:DEN)’s growing CCUS effort, the analyst added.
On February 24, Denbury Inc. (NYSE:DEN) reported its fourth quarter results, posting a GAAP EPS of $2.19, beating estimates by $1.44. Revenue jumped 83.64% year-over-year to $361.90 million, outperforming estimates by $47.95 million.
According to Insider Monkey’s Q4 database, Edward A. Mule’s Silver Point Capital is the leading stakeholder of Denbury Inc. (NYSE:DEN), with 3.8 million shares worth $292.5 million. Overall, 32 hedge funds reported owning stakes worth more than $1 billion in Denbury Inc. (NYSE:DEN) at the end of December 2021.
You can also take a look at 10 Dividend Growth Stocks Popular on Robinhood and 10 Dividend Paying Consumer Defensive Stocks.
