5 Stocks Billionaire David Harding is Buying in Droves

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1. Union Pacific Corporation (NYSE:UNP)

Value of Winton Capital Management‘s 13F Position: $21.2 million

Number of Hedge Fund Shareholders: 90

Topping the list of stocks that David Harding is buying in droves is Union Pacific Corporation (NYSE:UNP). Winton Capital grew its UNP stake by 335% during Q1 to 77,643 shares, with the position ranking as its second-largest equity holding as of March 31. Hedge fund ownership of Union Pacific surged to a record high during Q1, jumping by 48% quarter-over-quarter.

Union Pacific Corporation (NYSE:UNP) pulled in $5.86 billion in revenue during Q1, a 17.2% year-over-year increase and topping estimates by $100,000. Earnings per share grew by 29% year-over-year to $2.57, which narrowly topped estimates. Further cost pressures are weighing on the company’s bottom line, with management warning last month that rising fuel prices and other costs would negatively impact its profit margins.

Earlier this month, Susquehanna downgraded UNP to ‘Neutral’ from ‘Positive’. The firm noted the aforementioned cost pressures facing the firm and broader industry, as well as supply chain challenges that are weighing on rail volumes despite strong underlying demand. The firm fears that demand from rail’s rate-sensitive markets like housing could soon weaken though. Susquehanna cut its price target on Union Pacific shares to $235 from $310.

Carillon Eagle Growth & Income Fund is bullish on Union Pacific Corporation (NYSE:UNP) given rising oil prices, having this to say about the company in its Q1 2022 investor letter:

“Union Pacific (NYSE:UNP) benefited from rising oil prices, which typically bring more demand for rail shipping as opposed to moving freight by truck. Rail transportation can be much more fuel-efficient than over-the-road trucking.”

For more of the latest stock picks worth considering for your portfolio, check out 10 Best Undervalued Automobile Stocks to Buy Now and 10 Best Data Center Stocks To Invest In.

Disclosure: None.

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