In this article, we discuss the top 5 stocks to buy now according to Vinit Bodas’ Deccan Value Investors. If you want to read our detailed analysis of Bodas’ history, investment philosophy, and hedge fund performance, go directly to the 9 Best Value Stocks to Buy Now According to Vinit Bodas’ Deccan Value Investors.
5. TransDigm Group Incorporated (NYSE:TDG)
Deccan Value Investors Stake Value: $266,156,000
Percentage of Deccan Value Investors’ 13F Portfolio: 10.52%
Number of Hedge Fund Holders: 63
TransDigm Group Incorporated (NYSE:TDG) is a publicly listed aerospace manufacturing firm in Cleveland, Ohio. As part of comprehensive research on key Aerospace and Defense names, Truist analyst Michael Ciarmoli upgraded TransDigm Group Incorporated (NYSE:TDG) to “Buy” from “Hold” with a price objective of $786, up from $600, in January.
For the fiscal third quarter of 2021, TransDigm Group Incorporated (NYSE:TDG) reported an EPS of $4.25, beating estimates by $0.55. On the other side, the company’s sales for the quarter was $1.28 billion, which was $40 million below market expectations.
TransDigm Group Incorporated (NYSE:TDG) is also getting the attention of the smart money, as 63 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 57 funds a quarter earlier.
Vulcan Value Partners, an investment management firm, in its second-quarter 2021 investor letter mentioned TransDigm Group Incorporated (NYSE:TDG). Here is what the fund said:
“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”
4. Microsoft Corporation (NASDAQ:MSFT)
Deccan Value Investors Stake Value: $343,125,000
Percentage of Deccan Value Investors’ 13F Portfolio: 13.57%
Number of Hedge Fund Holders: 250
Microsoft Corporation (NASDAQ:MSFT) is a software and hardware company that creates, manufactures, and distributes personal computers, computer software, related services, and consumer electronics. Deccan Value Investors started investing in Microsoft Corporation (NASDAQ:MSFT) during the second quarter of 2011. In Q3 2021, the hedge fund reduced its stake in the company by 3%, representing 13.57% of its 13F portfolio.
In the third quarter, hedge fund sentiment increased for Microsoft Corporation (NASDAQ:MSFT). Insider Monkey’s data shows that 250 elite hedge funds held stakes in the company at the end of the third quarter, up from 238 funds a quarter earlier.
In its fourth-quarter 2021 investor letter, Claret Asset Management mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Our biggest undertaking in 2021 was a conversion of our technology platform from a local area network within our office to having our proprietary network all in the “cloud.” We have chosen Microsoft and their Azure system as our partner, as we feel they are the best positioned to service our network, which includes Microsoft 365 Office, their data facilities all in Quebec and Ontario and as they learn the products in depth, we feel they are best able to defend each endpoint against any cyber attacks that may create havoc for us and for our clients. We want to protect your privacy and ours, and off er you a seamless and confi dential information environment. Additionally, the IT engineering fi rm we use to ensure 24/7 coverage of our system and the operation of the equipment to optimize our service levels and the integrity of our reporting and data protection. In 2021, we completed our client reporting migration to Croesus and we now have client portals for each client and relationship – if you haven’t signed in yet, please do so as all your documents and quarterly reports can be made available for you to view at your convenience in the “privacy” of your own personal devices whether desktop or mobile. You are able to store these documents in a secure environment, eliminating the need to keep “paper” copies if you prefer.”
3. Alphabet Inc. (NASDAQ:GOOG)
Deccan Value Investors Stake Value: $355,899,000
Percentage of Deccan Value Investors’ 13F Portfolio: 14.07%
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) rebranded from Google in 2015, is a high-tech corporation. Alphabet Inc.’s (NASDAQ:GOOG) biggest investor is Barry Dargan’s Intermede Investment Partners. It has a $294.85 million stake in the firm through owning 101,896 shares.
In a research note, BofA analyst Justin Post reminds investors that Google’s new projects like Performance Max can continue to deliver robust search revenue growth. As a result, Justin Post boosted his price objective on Alphabet from $3,210 to $3,470 in January and maintained a “Buy” recommendation on the stock.
Hedge funds are loading up on Alphabet Inc. (NASDAQ:GOOG), as Insider Monkey’s data shows that 156 hedge funds held a stake in the company as of the end of the third quarter, compared to 155 funds in the previous quarter.
Oakmark Funds, in its fourth-quarter 2021 investor letter mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“For Alphabet, we add back its research spending on Waymo and “other bets” and add an asset for the value of those money-losing ventures. We also value cash separate from the business because if you valued cash at a normal P/E today, you’d be valuing it at pennies on the dollar. When we make our adjustments to Alphabet’s financials, we own its wonderful search business at less than the S&P multiple, which we consider to be a bargain.”
2. salesforce.com, inc. (NYSE:CRM)
Deccan Value Investors Stake Value: $372,439,000
Percentage of Deccan Value Investors’ 13F Portfolio: 14.73%
Number of Hedge Fund Holders: 119
salesforce.com, inc. (NYSE:CRM) is a cloud computing startup that sells customer relationship management (CRM) software to organizations. In the third quarter, Vinit Bodas decreased his stake in salesforce.com, inc. (NYSE:CRM) by 3%, and his 14.73% stake in the company is now worth about $372.44 million.
As per Insider Monkey’s Q3 data, 119 hedge funds tracked by Insider Monkey held stakes in salesforce.com, inc. (NYSE:CRM), up from 108 in the preceding quarter. The consolidated value of these stakes is over $14.90 billion, up from $11.77 billion in Q2.
In its third-quarter 2021 investor letter, ClearBridge Investments mentioned salesforce.com, inc. (NYSE:CRM). Here is what the fund said:
“On an individual stock basis, leading contributors to absolute returns in the third quarter included positions in Salesforce.com. Meanwhile, with a new CFO focused on delivering consistent growth and expanding margins, Salesforce could soon surpass SAP as the world’s largest enterprise applications provider with an all-subscription-based model. The recent acquisition of Slack should better connect the company’s products and services with its users as the messaging platform becomes more dynamic and interactive.”
1. Otis Worldwide Corporation (NYSE:OTIS)
Deccan Value Investors Stake Value: $375,880,000
Percentage of Deccan Value Investors’ 13F Portfolio: 14.87%
Number of Hedge Fund Holders: 46
Otis Worldwide Corporation (NYSE:OTIS) is an American firm that designs, manufactures, and sells escalators, elevators, moving walkways, and other related products. Among the hedge funds being tracked by Insider Monkey, Nicolai Tangen’s Ako Capital is a leading shareholder in Otis Worldwide Corporation (NYSE:OTIS) with 4.80 million shares worth more than $394.57 million.
In October, Wells Fargo analyst Joseph O’Dea initiated coverage of Otis Worldwide Corporation (NYSE:OTIS) with an “Underweight” rating and gave a price target of $72, citing his stance as a value call with flexibility on China real estate market uncertainty.
Overall, hedge funds are loading up on Otis Worldwide Corporation (NYSE:OTIS), as 46 out of the 867 funds tracked by Insider Monkey held stakes in the company, compared to 45 funds a quarter earlier.
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