In this piece, we will take a look at the 5 industrial stocks to buy according to billionaire Ray Dalio. If you want to learn about Mr. Dalio, his investment firm and more stocks in this list then go to 10 Industrial Stocks To Buy According To Billionaire Ray Dalio.
5. DuPont de Nemours, Inc. (NYSE:DD)
Bridgewater Associates’ Stake Value: $42.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 51
DuPont de Nemours, Inc. (NYSE:DD) is a supplier to several technology industries. Its products are used in the manufacture of photovoltaics (solar panels), semiconductors (chips), and light-emitting diodes (LED) televisions among others. The company is headquartered in the United States.
For its Q3, DuPont de Nemours, Inc. (NYSE:DD) brought in $4.27 billion in revenue and $1.15 in non-GAAP EPS, beating analyst estimates for both. The company’s price target was raised to $101 from $96 by BMO Capital in November 2021, which shared that acquisitions and divestments have played a positive role in its transformation.
During Q3 2021, Mr. Dalio’s investment firm held 628,666 DuPont de Nemours, Inc. (NYSE:DD) shares, which were worth $42.7 million and represented 0.23% of its portfolio. An Insider Monkey survey of 867 hedge funds for the same time period revealed that 51 had holdings in the company.
The industrial supplier’s largest shareholder is David S. Winter and David J. Millstone 40 North Management who owns 4.8 million shares worth $331 million.
Longleaf Partners Fund mentioned DuPont de Nemours, Inc. (NYSE:DD) in its Q1 2021 investor letter, outlining that:
“We exited three businesses in the quarter (including) DuPont. We have owned DuPont successfully three times now in the last decade and have great respect for CEO Ed Breen, who has delivered on creating value and focusing the company on its core businesses. We continue to view the business and leadership highly and hope to have the opportunity to partner with them again.”
4. The Sherwin-Williams Company (NYSE:SHW)
Bridgewater Associates’ Stake Value: $43.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 44
The Sherwin-Williams Company (NYSE:SHW) is an American company that sells paint, coatings, and other associated products to industries and other customers. These products include automotive refinish products, wood finish coatings, and performance-based colorants among others.
Bridgewater Associates owned a $43.7 million stake in The Sherwin-Williams Company (NYSE:SHW) as the third quarter of this year came to an end. This was through 156,574 shares, and it represented 0.23% of the investment firm’s portfolio. Of the 867 hedge funds part of Insider Monkey’s Q3 2021 poll, 44 had also owned The Sherwin-Williams Company (NYSE:SHW) shares.
The Sherwin-Williams Company (NYSE:SHW) raked in $5.15 billion in revenue and $2.09 in non-GAAP EPS for its third fiscal quarter, as it beat analyst estimates for both. BMO Capital raised the company’s price target to $355 in October 2021, outlining that the headwinds faced by the company appear to have peaked.
Richard Chilton’s Chilton Investment Company is the company’s largest shareholder. It owns 1.1 million shares worth $323 million.
3. PPG Industries, Inc. (NYSE:PPG)
Bridgewater Associates’ Stake Value: $51.9 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 30
PPG Industries, Inc. (NYSE:PPG) is an industrial specialty materials and coatings provider headquartered in the United States which provides services for several heavy-duty segments. These include fleet and aircraft maintenance alongside bridge repairs and metal fabrication.
Mr. Dalio’s Bridgewater Associates owned 363,554 PPG Industries, Inc. (NYSE:PPG) shares worth $51.9 million and 0.28% of its portfolio by the end of Q3 2021. During the same time period, 30 of 867 hedge funds polled by Insider Monkey had holdings in the company.
For its Q3, PPG Industries, Inc. (NYSE:PPG) earned $4.37 billion in revenue and $1.69 in non-GAAP EPS, beating estimates on both counts. Mizuho raised its price target to $184 from $180 in October 2021, stating that despite slow automotive recoveries, it was optimistic for the company’s future.
PPG Industries, Inc. (NYSE:PPG)’s largest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management who owns 1 million shares worth $154 million.
Madison Funds mentioned PPG Industries, Inc. (NYSE:PPG) in its 3Q 2021 investor letter. It outlined that:
“Regarding business activity, we have had companies report disruptions to current economic results from the aforementioned logistical challenges. The coatings industry and PPG have seen raw material shortages and escalating cost inflation from Gulf Coast petrochemical suppliers, while also experiencing lower demand from auto production customers due to semiconductor shortages. We are encouraged by the pricing escalators that PPG is enacting, which bodes well for recouping this year’s cost increases as the supply chain normalizes.”
2. Veeva Systems Inc. (NYSE:VEEV)
Bridgewater Associates’ Stake Value: $85.4 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 44
Veeva Systems Inc. (NYSE:VEEV) is a software provider for the life sciences industry in the United States. It provides products that allow its customers to manage their commercial functions, research and development, and communication.
In its third fiscal quarter, Veeva Systems Inc. (NYSE:VEEV) brought in $476 million in revenue and $0.97 in non-GAAP EPS, topping analyst estimates on both counts. In December 2021, Baird reduced the company’s price target to $310 from $349. It based the decision on worrying margins that might hamper growth.
As the third quarter of this year came to an end, Mr. Dalio’s Bridgewater Associates held 296,451 Veeva Systems Inc. (NYSE:VEEV) shares. These were worth $85 million and represented 0.46% of its multi-billion dollar portfolio. 44 of the 867 hedge funds held the company’s shares in Q3 2021 according to Insider Monkey’s research.
Veeva Systems Inc. (NYSE:VEEV)’s largest shareholders is Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital who owns 981,523 shares worth $282 million.
1. Danaher Corporation (NYSE:DHR)
Bridgewater Associates’ Stake Value: $214 million
Percentage of Bridgewater Associates’ 13F Portfolio: 1.17%
Number of Hedge Fund Holders: 74
Danaher Corporation (NYSE:DHR) provides its customers with several products that allow them to manage waste, ground, and ocean water across construction and other industries. It also offers packaging solutions for consumer and industrial products.
Bridgewater Associates held 703,685 Danaher Corporation (NYSE:DHR) shares as of Q3 2021. These were worth $214 million and represented 1.17% of its portfolio. 74 of the 867 hedge funds polled by Insider Monkey held the company’s shares during Q3 2021.
Danaher Corporation (NYSE:DHR) earned $7.23 billion in revenue and $2.39 in non-GAAP EPS for its Q3. This enabled it to beat analyst estimates for both. Its price target was raised by Baird to $340 from $305 in October 2021, with strong guidance and optimistic COVID-19 testing assumptions driving the decision.
Ken Fisher’s Fisher Asset Management is Danaher Corporation (NYSE:DHR)’s largest investor. It owns a stake of $1 billion in the company, through 3.4 million shares.
ClearBridge Investments mentioned the company in its Q2 2021 investor letter, stating that:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector. Danaher, for example, is seeing customer activity approach pre-pandemic levels and is executing well. In addition to improving health through its life sciences (research tools for biopharmaceutical, food and beverage, medical, aerospace and microelectronics industries) and diagnostics (tools for use in labs and critical care settings) businesses, Danaher offers environmental and applied solutions that keep global food and water supplies safe.”
You can also take a peek at the 10 Best Undervalued UK Stocks to Invest In and 11 Best Dividend Stocks To Buy According To Warren Buffett.
