In this article, we will discuss 5 new stocks for 2021 to buy now according to Qing Li’s Sciencast Management Portfolio based on Q2 holdings of the fund. If you want to read our detailed analysis of Li’s history, investment philosophy, and hedge fund performance, go directly to the 10 New Stocks for 2021: Qing Li’s Sciencast Management Portfolio.
5. Colgate-Palmolive Company (NYSE:CL)
Li’s Stake Value: $4,556,000
Percentage of Qing Li’s 13F Portfolio: 0.95%
Number of Hedge Fund Holders: 58
Colgate-Palmolive is a US-based multinational consumer product company that specializes in manufacturing, retailing, and provision of household, veterinary, and healthcare products. Qing Li’s Sciencast management holds 55,326 shares in Colgate-Palmolive Company (NYSE: CL) that amount to over $4.55 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Management is a leading shareholder in Colgate-Palmolive Company (NYSE: CL) with 11.8 million shares worth more than $963 million.
On September 20, Deutsche Bank upgraded Colgate-Palmolive Company (NYSE: CL) to Buy from Hold, citing that the company has inculcated a ‘growth mindset’ over the past few years. The company also met the analysts’ EPS estimate of $0.80 for the second quarter of 2021.
Colgate-Palmolive Company (NYSE: CL) saw an increase in hedge fund sentiment recently. Based on the data of the 873 funds tracked, the number of hedge fund positions in Colgate-Palmolive Company (NYSE: CL) increased to 58 at the end of the second quarter of 2021 compared to 48 in the first quarter.
First Eagle Management mentioned Colgate Palmolive Co. (NYSE: CL) in their Q1 2021 investor letter. Here’s what the investment management firm said:
“The leading detractors in the quarter (included) Colgate-Palmolive Company. After a strong 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally cooled during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. The effects of this rotation could be seen in the share price underperformance of names like Colgate-Palmolive.”
4. ICON Public Limited Company (NASDAQ:ICLR)
Li’s Stake Value: $4,620,000
Percentage of Qing Li’s 13F Portfolio: 0.96%
Number of Hedge Fund Holders: 39
ICON is an Irish company that specializes in the provision of outsourced development and commercialized services to various industries including pharmaceutical, biotechnological, and medical. Qing Li’s Sciencast Management holds 21,942 shares in ICON Public Limited Company (NASDAQ: ICLR) worth $4.62 million and 0.96% of the 13F portfolio.
On September 27, investment advisory firm JPMorgan upgraded ICON Public Limited Company (NASDAQ: ICLR) to Overweight from Neutral, predicting that ICON is likely to capitalize on its acquisition of PRA Health Sciences. For the second quarter of 2021, ICON Public Limited Company (NASDAQ: ICLR) recorded EPS of $2.21, beating analysts’ EPS estimate by $0.01.
ICON Public Limited Company (NASDAQ: ICLR) was mentioned in Baron Funds’ Q2 2021 investor letter. Here’s what the asset management firm said:
“We added to our position in ICON Plc, a leading contract research organization (“CRO”) which provides outsourced drug and device development and commercialization services to pharmaceutical, biotechnology, medical device, and government and public health organizations. We continue to believe the merger with PRA Health Sciences, Inc. will be a good, accretive transaction for ICON. The CRO sector is experiencing healthy growth driven by record levels of biotechnology funding, solid biopharmaceutical R&D spend, and continued outsourcing of clinical development. Long term, management targets high single-digit revenue growth and mid-teens earnings growth. We continue to see significant upside in the stock price over a multi-year period.”
At the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in ICON Public Limited Company (NASDAQ: ICLR), up from 29 in the preceding quarter. Moreover, Icon Plc. is one of the seven Irish companies in the UNICEF Vaccine Alliance; supporting their mission and urging the public to acknowledge the significance of UNICEF’s mission.
3. BlackRock, Inc. (NYSE:BLK)
Li’s Stake Value: $4,624,000
Percentage of Qing Li’s 13F Portfolio: 0.96%
Number of Hedge Fund Holders: 47
Blackrock, Inc. is a US-based investment management corporation that specializes in advisory, investment, and risk management services. Qing Li’s Sciencast management holds 5152 shares in Blackrock, Inc. (NYSE: BLK), worth over $4.62 million.
Out of the hedge funds being tracked by Insider Monkey, Florida-based firm Ivy Lane Capital is a leading shareholder in BlackRock, Inc. (NYSE: BLK) with 21,500 shares worth more than $18 billion. For the second quarter of 2021, the company beat the analysts’ EPS estimate of $9.47 by $0.56.
On August 31, the price target on BlackRock, Inc. (NYSE: BLK) was increased from $1001 to $1075 and a Buy rating was maintained by investment advisory firm Jefferies. This was accredited to the record ETF inflows in 2021.
Based on the data of the 873 funds tracked by Insider Monkey, the number of hedge fund positions in BlackRock, Inc. (NYSE: BLK) increased to 47 at the end of the second quarter of 2021 compared to 42 in the first quarter.
Asset management firm Baron Funds shared its stance on BlackRock, Inc. (NYSE: BLK) in their Q1 2021 investor letter. Here’s what Baron FinTech Fund said:
“During the quarter, we initiated a position in BlackRock Inc., the world’s largest investment manager with $9 trillion in assets under management. BlackRock offers an array of products across equities, fixed income, alternatives, and cash management to institutional and retail investors worldwide. About one-quarter of BlackRock’s assets under management is actively managed, and the rest is in passive index funds and iShares-branded ETFs. The company offers technology services including the investment and risk management platform, Aladdin, as well as other advisory services and solutions. Over the five years ending December 31, 2020, assets under management and earnings per share grew at compound annual growth rates of 13% and 12%, respectively.
We believe BlackRock is well positioned for continued growth given its diverse product offering, global distribution, brand recognition, and capable management team. With most of its assets in index funds and ETFs, BlackRock is a prime beneficiary of the ongoing shift to passive investing. The company also benefits from increasing demand for sustainable investment strategies and “barbell” strategies that use a combination of low-cost index funds, active and illiquid alternatives products. BlackRock fits squarely within our Tech-Enabled Financials theme given its longstanding commitment to innovation and proprietary technology platform, Aladdin, which serves as the investment and risk management system for both BlackRock and a growing number of institutional investors around the world. We expect BlackRock’s earnings per share will continue to grow at a doubledigit annual rate over a market cycle through a combination of mid-single-digit growth in assets under management from net inflows, market appreciation, low to mid-teens revenue growth in technology services, modest margin expansion, and share repurchases.”
2. L3Harris Technologies, Inc. (NYSE:LHX)
Li’s Stake Value: $4,642,000
Percentage of Qing Li’s 13F Portfolio: 0.97%
Number of Hedge Fund Holders: 42
L3Harris Technologies, Inc. (NYSE: LHX), is an American technology company that specializes in the provision of advanced defense and commercial technologies that assists with surveillance solutions, microwave weaponry, and electronic warfare. Qing Li’s Sciencast management owns 20,896 shares in L3Harris Technologies, Inc. (NYSE: LHX) worth over $4.64 million.
Out of the hedge funds being tracked by Insider Monkey, Ohio-based firm Diamond Hill Capital is a leading shareholder in L3Harris Technologies, Inc. (NYSE: LHX) with around 1.2 million shares, worth more than $267 million.
On September 23, investment management firm Goldman Sachs downgraded L3Harris Technologies (NYSE: LHX) to Sell from Neutral, stating that a reduction in the defense budget growth rate of the United States is likely to impact L3Harris’ sales.
As of the second quarter of 2021, 42 hedge funds out of the 873 tracked by Insider Monkey held stakes in L3Harris Technologies Inc. (NYSE: LHX), compared to 41 in the previous quarter.
L3Harris Technologies, Inc. (NYSE: LHX) was mentioned in Artisan Mid Cap Fund’s Q4 2020 investor letter. Here’s what the fund said:
“We also exited our position in L3Harris Technologies. L3Harris’ recent quarterly results showed some pandemic-related impact on the company’s business, though relative to other industrials stocks, the effect has been quite modest, and it is achieving ahead-of-schedule synergies from its recent merger. However, concerns about ballooning federal deficits and potential associated defense-budget cuts have been a headwind. We share these concerns, and with the company’s market cap above the mid-cap range, we concluded our campaign to fund newer profit cycle opportunities.”
1. Citigroup Inc. (NYSE:C)
Li’s Stake Value: $4,711,000
Percentage of Qing Li’s 13F Portfolio: 0.98%
Number of Hedge Fund Holders: 87
Citigroup Inc. is a US-based multinational financial services corporation and an investment bank that specializes in the provision of various financial products and services including consumer banking, corporate and investment banking, securities brokerage, and wealth management. Based on the latest 13F filings, Qing Li’s Sciencast Management owns 69,086 shares in Citigroup Inc. (NYSE: C) as of the second quarter of 2021 worth over $4.71 million.
Out of the hedge funds tracked by Insider Monkey, Crake Asset Management is a leading shareholder in Citigroup Inc. (NYSE: C) with a stake worth more than $66 billion. As of the second quarter of 2021, the company recorded an EPS of $2.84, beating the analysts’ estimate by $0.95.
In August, investment advisory Piper Sandler lowered the price target from $95 to $91 and maintained an Overweight rating on Citigroup Inc. (NYSE: C), underlining the strong second-quarter earnings results.
As of the second quarter of 2021, 87 hedge funds out of the 873 tracked by Insider Monkey held stakes in Citigroup Inc. (NYSE: C), compared to 90 in the previous quarter. The total value of these stakes is over $6 billion.
You can also take a peek at the 10 Penny Stocks With Long-Term Growth Catalysts and 5 Best Bank and Finance Stocks to Buy According to Mario Gabelli.
