In this article, we will be taking a look at 5 safe stocks to buy now according to billionaire Dan Loeb. To read our detailed analysis of Loeb’s investment history, strategy, and 13F holdings, you can go directly to see the 10 Safe Stocks to Buy Now According to Billionaire Dan Loeb.
5. DuPont de Nemours, Inc. (NYSE:DD)
Third Point’s Stake Value: $247,229,000
Percentage of Third Point’s 13F Portfolio: 3.2%
Number of Hedge Fund Holders: 50
DuPont de Nemours, Inc. (NYSE:DD) is a specialty chemicals company providing tech-based materials and solutions in the US, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company operates through its Electronics & Industrial, Mobility & Materials, and Water & Protection segments.
UBS analyst Joshua Spector holds a Buy rating on shares of DuPont de Nemours, Inc. (NYSE:DD) as of this July. Spector also has an $87 price target placed on the stock.
This July, analyst Michael Leithead at Barclays commented that he does not expect to see weakening stock performance in the chemicals sector. He reiterated an Equal Weight rating on DuPont de Nemours, Inc. (NYSE:DD) shares and mentioned that earnings in the second quarter should be solid. The stock is hence among the best defensive plays in the chemicals sector.
Out of 912 hedge funds, 50 hedge funds were long DuPont de Nemours, Inc. (NYSE:DD) in the first quarter of 2022. Their total stake value was $1.5 billion.
4. UnitedHealth Group Inc. (NYSE:UNH)
Third Point’s Stake Value: $308,532,000
Percentage of Third Point’s 13F Portfolio: 4.01%
Number of Hedge Fund Holders: 103
UnitedHealth Group Inc. (NYSE:UNH) is a diversified healthcare company operating in the US. The company offers consumer-oriented health benefit plans and services, alongside healthcare coverage and well-being services among more.
Kavin Caliendo, an analyst at UBS, raised his price target on UnitedHealth Group Inc. (NYSE:UNH) shares this July from $545 to $570. The analyst also reiterated his Neutral rating on the stock.
On July 15th, UnitedHealth Group Inc. (NYSE:UNH) raised its EPS outlook for the fiscal year of 2022 in light of its stellar second-quarter earnings results. The company had an EPS of $5.6, beating estimates by $0.4, while its revenue was $80.3 billion, also beating estimates by $652.1 million. The EPS outlook has been increased to $21.4 to $21.9, while the consensus EPS estimate for 2022 is $21.7. As UnitedHealth Group Inc. (NYSE:UNH) is a healthcare stock that not only benefits from positive analyst ratings, financial performance, and a reputation of stability in times of recession, it is among the best safe stocks in Dan Loeb’s portfolio.
Our hedge fund data for the first quarter shows 103 funds long UnitedHealth Group Inc. (NYSE:UNH), with a total stake value of $12.8 billion. In the previous quarter, 96 hedge funds were long the stock, with a total stake value of $13.7 billion.
Baron Funds, an asset management firm, mentioned UnitedHealth Group Inc. (NYSE:UNH) in its first quarter of 2022 investor letter. Here’s what they said:
“UnitedHealth Group Incorporated is a leading diversified health and well- being company whose divisions include insurance arm United Healthcare and Optum, which offers care delivery and other services. Shares increased on a fourth quarter beat and a reaffirmation of what is likely conservative guidance for 2022. We believe UnitedHealth leads the health care industry in innovation and execution, as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
3۔ S&P Global Inc. (NYSE:SPGI)
Third Point’s Stake Value: $393,773,000
Percentage of Third Point’s 13F Portfolio: 5.1%
Number of Hedge Fund Holders: 97
S&P Global Inc. (NYSE:SPGI) is a financials company that provides credit ratings, benchmarks, analytics, and workflow solutions. The company caters primarily to the global capital, commodity, and automotive markets. It operates through six segments: S&P Global Ratings, S&P Dow Jones Indices, S&P Global Commodity Insights, S&P Global Market Intelligence, S&P Global Mobility, and S&P Global Engineering Solutions.
Raymond James’ Patrick O’Shaughnessy holds an Outperform rating on S&P Global Inc. (NYSE:SPGI) shares as of this June. The analyst also has a $417 price target on the stock.
This June, S&P Global Inc. (NYSE:SPGI) declared a $0.8 per share quarterly dividend with a forward yield of about 1.1%. The dividend is payable to shareholders on September 12th. According to Nasdaq, S&P Global Inc.’s (NYSE:SPGI) expected long-term earnings per share growth rate was 12% as of this March. Since the stock is expected to continue performing well for the next three to five years, it is among the top safe dividend stock picks in Loeb’s 13F holdings.
In the first quarter of 2022, 97 hedge funds were long S&P Global Inc. (NYSE:SPGI), with a total stake value of $9.9 billion.
Cooper Investors, an investment management firm, mentioned S&P Global Inc. (NYSE:SPGI) in its first-quarter 2022 investor letter. Here’s what they said:
“This quarter, S&P Global announced the successful completion of its acquisition of IHS Markit. The deal makes S&P a global leader across the information services industry. The Fund has been long term shareholders of S&P, building a position back in 2015 when the organisation was still named McGraw-Hill Financial. We saw the initial opportunity as it refocused the business from a publishing and financial conglomerate towards its core data and financial assets. S&P’s credit ratings, benchmarks and analytics businesses in global capital and commodity markets carry leading positions, defensible offerings, consistent growth and high margins – as true today as it was seven years ago. With the increased focus management have applied over a lengthy period we see improved revenue growth, margins and cash flows…” (Click here to see the full text)
2. Danaher Corporation (NYSE:DHR)
Third Point’s Stake Value: $730,392,000
Percentage of Third Point’s 13F Portfolio: 9.5%
Number of Hedge Fund Holders: 83
Danaher Corporation (NYSE:DHR) is a healthcare company that designs, manufactures, and markets professional, medical, industrial, and commercial products and services. The company operates internationally through its Life Sciences, Diagnostics, and Environmental & Applied Solutions segments.
Analyst Deane Dray at RBC Capital holds an Outperform rating on Danaher Corporation (NYSE:DHR) shares as of this July. The analyst also raised his price target on the stock to $317 in the same month. Dray commented that Danaher Corporation (NYSE:DHR) hosts a market-leading, mostly defensive portfolio. It is among Loeb’s safest stock picks this year.
There were 83 hedge funds long Danaher Corporation (NYSE:DHR) in the first quarter, compared to 87 hedge funds long the stock in the previous quarter. Their total stake values were $6.2 billion and $7.4 billion respectively.
1. PG&E Corporation (NYSE:PCG)
Third Point’s Stake Value: $827,442,000
Percentage of Third Point’s 13F Portfolio: 10.8%
Number of Hedge Fund Holders: 51
PG&E Corporation (NYSE:PCG) is an electric utility company operating through its subsidiary, the Pacific Gas and Electric Company. It sells and delivers electricity and natural gas to customers in the US.
Barclays analyst Eric Beaumont holds an Overweight rating on PG&E Corporation (NYSE:PCG) shares as of this July, alongside a price target of $16. Utility stocks like PG&E Corporation (NYSE:PCG) are often picked up by investors looking for defensive stock options, and the stock is currently Third Point’s second-largest position.
PG&E Corporation (NYSE:PCG) has a revenue growth percentage of 15.1% year-over-year, and free cash flow growth of 79.8% in 2021. Its P/E ratio as of this July is 9.7.
PG&E Corporation (NYSE:PCG) had 51 hedge funds holding stakes in its stock in the first quarter of 2022. Their total stake value was $3.2 billion.
Third Point Management, an investment management firm, mentioned PG&E Corporation (NYSE:PCG) in its first quarter of 2022 investor letter. Here’s what they said:
“We continue to see immense value and potential in our position in Pacific Gas & Electric, which emerged from bankruptcy just two years ago. PG&E’s new CEO, Patti Poppe, has transformed the organization, creating a new leadership and safety culture around a talented, committed, and dynamic executive team that is rethinking the way the Company addresses the energy needs of Northern Californians. California is at the forefront of the new energy transition with aggressive renewable procurement goals and high electric vehicle adoption, yet the state faces escalating climate change risks due to extreme drought conditions and wildfires. These conditions present unique challenges to utilities operating in the state. Patti and her team have brought new and creative solutions to these challenges with her focus on a lean operating system and an ambitious undergrounding plan.
In April, PG&E Corporation reported a straightforward and uneventful set of a results, delivering on its promises to customers and investors. As investors, we celebrate that simplicity. At current prices, the Company trades at under 12x 2022 consensus earnings compared to the utility index average of 21x and below its closest California peer, Edison International, at 15x. While there is an overhang from shares to be monetized by the PG&E Fire Victim Trust, PG&E will benefit from the reinstatement of a cash dividend in 2023 and if, as hoped, it is included in the S&P 500 index. Over the next year, we think PG&E will Page 7 continue to re-rate towards industry averages while also growing earnings at an industry-leading 10% per year. In this type of market environment, the financial equation of consistent earnings growth and multiple re-rating makes for a wonderfully boring story and a solid anchor for our portfolio as Third Point’s largest position.”
You can also take a look at 10 Best Bank Stocks To Buy Now and 10 States with the Most Expensive Health Insurance.
