This article presents an overview of the 5 Most Profitable New Stocks Today. For a detailed overview of such stocks, read our article, 16 Most Profitable New Stocks Today.
5. HALEON PLC – ADR (NYSE:HLN)
Net Income (TTM): $1.3B
HALEON PLC – ADR (NYSE:HLN) spun off from GSK and started publicly trading in 2022. Over the past 12 months HALEON PLC – ADR (NYSE:HLN) has a net income of about $1.3 billion. Jefferies in December gave a Buy rating on HALEON PLC – ADR (NYSE:HLN) despite the tough macroeconomic backdrop.
As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in HALEON PLC – ADR (NYSE:HLN).
4. GE HealthCare Technologies Inc (NASDAQ:GEHC)
Net Income (TTM): $1.54B
GE HealthCare Technologies Inc (NASDAQ:GEHC) was spun off from General Electric and started trading independently in 2023.
The stock has gained about 27% over the past one year.
As of the end of the third quarter of 2023, 41 hedge funds tracked by Insider Monkey had stakes in GE HealthCare Technologies Inc (NASDAQ:GEHC).
Sound Shore Management made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q3 2023 investor letter:
“That said, current macro factors of higher inflation, rising rates, and a slowing economy are affecting stock prices in the short-term. Against this backdrop, many consumer stocks and financing-based business models declined in the third quarter. For example, GE HealthCare Technologies Inc. (NASDAQ:GEHC) was our largest detractor for the period. A recent spinout from GE, the company is the world’s largest medical imaging supplier with steady growth and higher margins. We purchased the stock in the first quarter of 2023 when it was trading at 14 times normalized earnings, a significant discount to peers. Our research concluded that GEHC’s profit margins were temporarily depressed due to the spinoff and one-time Research & Development charges, and that management’s plan for improvement was credible. The stock got off to a strong start early in the year, but returned the bulk of its gains as higher borrowing rates for their customers created demand uncertainty. As well, 15% of GE Healthcare’s business is from China, where demand has slowed along with the economy. We view these headwinds as temporary, and added to our position during the stock’s recent pullback.”
3. Kenvue Inc (NYSE:KVUE)
Net Income (TTM): $1.57B
Kenvue Inc (NYSE:KVUE) spun off from Johnson & Johnson last year and started publicly trading in May. The stock jumped in December after a judge ruled in the company’s favor in a class action lawsuit alleging prenatal exposure to Tylenol may contribute to autism or attention-deficit hyperactivity disorder.
As of the end of the third quarter of 2023, 84 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Kenvue Inc (NYSE:KVUE).
Mayar Capital made the following comment about Kenvue Inc. (NYSE:KVUE) in its third 2023 investor letter:
“We also initiated a new investment in the shares of Kenvue Inc. (NYSE:KVUE). In August, Johnson & Johnson completed the split-off from Kenvue in which J&J shareholders could tender their shares in exchange for Kenvue shares at a 7% discount. Kenvue is formerly the J&J Consumer Health business. The transaction makes sense – the Consumer division was always small for J&J and this separation gives investors two distinct options, one pure-play FMCG company, and one pure-play healthcare company. We like Kenvue’s strong brand portfolio across its OTC medication business as well as its beauty and other healthcare brands (such as Listerine and Johnson’s), and the company has some very strong positions in its niches. While this isn’t a fast-grower, the manufacturing scale, IP and distribution network of this business provide a deep enough moat to give reasonable assurances about the company’s quality. And the current valuation looks attractive.”
2. Constellation Energy Corp (NASDAQ:CEG)
Net Income (TTM): $1.69B
Constellation Energy Corp (NASDAQ:CEG) spun off from Exelon and started publicly trading in 2022. In November the stock jumped to new highs after Constellation Energy Corp’s (NASDAQ:CEG) earnings beat estimates. GAAP EPS in the period came in at $2.26, beating estimates by $1.23. Revenue in the quarter jumped 1% year over year to $6.11 billion, missing estimates by $1.01 billion.
Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:
“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”
1. Corebridge Financial Inc (NYSE:CRBG)
Net Income (TTM): $1.85B
In 2022, AIG Inc’s life insurance and retirement division Corebridge Financial Inc (NYSE:CRBG) raised $1.68 billion in an IPO that was the biggest in 2022 through September.
Over the past 12 months Corebridge Financial Inc’s (NYSE:CRBG) net income came in at $2.2 billion.
Artisan Mid Cap Value Fund made the following comment about Corebridge Financial, Inc. (NYSE:CRBG) in its Q3 2023 investor letter:
“Corebridge Financial, Inc. (NYSE:CRBG), a provider of life insurance and retirement solutions, was a standout in the financials sector. Corebridge was previously a unit of AIG and a September 2022 IPO. Earnings and cash flow have been solid, aided by increased spread income in the general account due to higher reinvestment rates. We added Corebridge to the portfolio in Q1 2023. Our thesis is now that Corebridge is not a part of a large inefficient and capital-constrained parent, the company should have plenty of room to improve its competitive position. Establishing new processes that both improve capabilities and wring out efficiencies as a standalone entity should help improve ROE in coming years. It has a 4%+ dividend yield and a double-digit free cash flow yield, even in 2022 when negative fixed income and equity markets reduced fee revenue. In addition to the dividend, free cash flow will be used to ensure holding company liquidity, repurchase stock and support modest growth expectations.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 17 High Growth Non-Tech Stocks That Are Profitable and the 16 Most Profitable Small-Cap Stocks Now.
