In this article, we discuss the 5 stocks Reddit’s WallStreetBets is buying before earnings. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks Reddit’s WallStreetBets is Buying Before Earnings.
5. ConocoPhillips (NYSE: COP)
Number of Hedge Fund Holders: 51
ConocoPhillips (NYSE: COP) is a Texas-based company in the oil and gas business. It is ranked fifth on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. The company will release the second quarter earnings report before the opening of the market on August 3. The firm beat market expectations on earnings per share and revenue for the first quarter. On July 30, news publication Bloomberg reported that the company was among the potential bidders in a sale of the Permian Basin oil fields presently owned by oil giant Shell.
Devon Energy (NYSE:DVN) and ConocoPhillips (NYSE:COP) are among potential suitors studying Royal Dutch Shell’s (RDS.A, RDS.B) portfolio of Permian Basin oil fields, which could be worth as much as $10B in a sale, Bloomberg reports.
On July 23, investment advisory Piper Sandler maintained an Overweight rating on ConocoPhillips (NYSE: COP) stock and raised the price target to $80 from $69, noting the robust free cash outlooks for oil companies in the coming months.
At the end of the first quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in ConocoPhillips (NYSE: COP), up from 49 in the previous quarter worth $687 million.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and ConocoPhillips (NYSE: COP) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
4. Eli Lilly and Company (NYSE: LLY)
Number of Hedge Fund Holders: 55
Eli Lilly and Company (NYSE: LLY) is placed fourth on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. The company makes and sells pharmaceuticals and is headquartered in Indiana. The firm will post second quarter results before the opening of the market on August 3. On July 29, the firm revealed the results of an analysis into a clinical study into a new drug being developed by the firm for the treatment of Alzheimer’s. The firm said early results showed slower cognitive declines in patients who took the drug.
On July 26, investment advisory Truist initiated coverage of Eli Lilly and Company (NYSE: LLY) stock with a Buy rating and a price target of $262, identifying some potential risks to the stock that could hinder growth over the next few months.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Eli Lilly and Company (NYSE: LLY) with 6 million shares worth $1.4 billion.
In its Q1 2020 investor letter, Amana Mutual Funds Trust highlighted a few stocks and Eli Lilly and Company (NYSE: LLY) was one of them. Here is what the fund said:
“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”
3. Lyft, Inc. (NASDAQ: LYFT)
Number of Hedge Fund Holders: 60
Lyft, Inc. (NASDAQ: LYFT) operates as a ridesharing company offering services primarily in the United States and Canada. It is ranked third on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. In earnings results for the first quarter, the company missed market expectations on earnings per share but beat them on revenue. It is expected to announce the second quarter results after the close of market on August 3. The company has a market cap of more than $18 billion and posted more than $2.3 billion in revenue last year.
On July 21, investment advisory DA Davidson assumed coverage of Lyft, Inc. (NASDAQ: LYFT) stock with a Buy rating and a price target of $25, underlining that the firm would benefit from the long-term growth in the ride sharing business.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Alkeon Capital Management is a leading shareholder in Lyft, Inc. (NASDAQ: LYFT) with 5 million shares worth more than $321 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Lyft, Inc. (NASDAQ: LYFT) was one of them. Here is what the fund said:
“New purchase Lyft, the No. 2 U.S. rideshare operator, is exclusively focused on the secular growth opportunity in the rideshare market and stands to be a direct economic reopening beneficiary. The company made tremendous progress on margins during 2020 and improved its ability to meet long-term targets. Lyft is also leveraged to the eventual transition to autonomous driving.”
2. Match Group, Inc. (NASDAQ: MTCH)
Number of Hedge Fund Holders: 68
Match Group, Inc. (NASDAQ: MTCH) is placed second on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. The firm is headquartered in Texas and owns and operates dating platforms. Some of the platforms it runs include Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime, among others. The company will post second quarter earnings after the close of market on August 3. The share price of the firm has soared as COVID-19 vaccinations allow for dating to resume across the globe.
On July 21, investment advisory Truist reiterated a Buy rating on Match Group, Inc. (NASDAQ: MTCH) stock and raised the price target to $190 from $160, highlighting the improving fundamentals of the firm in the post-pandemic economy.
At the end of the first quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Match Group, Inc. (NASDAQ: MTCH), down from 72 in the preceding quarter worth $3.7 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Match Group, Inc. (NASDAQ: MTCH) was one of them. Here is what the fund said:
“In addition to the new issue market, we have been tactically adding growth exposure. Our largest new position was Match Group, the global leader in the online dating space that was spun off by Interactive Corp. in 2020. Singles have put their life plans on hold during the pandemic but continue to want to meet people. Match was negative impacted by COVID, especially in markets like India, but the business is very profitable with high margins and is driving growth through international expansion, increasing users and better monetization and engagement.”
1. Activision Blizzard, Inc. (NASDAQ: ATVI)
Number of Hedge Fund Holders: 76
Activision Blizzard, Inc. (NASDAQ: ATVI) is a company that focuses on the production of interactive entertainment content. It is based in California and is ranked first on our list of 10 stocks Reddit’s WallStreetBets is buying before earnings. The firm will post second quarter earnings after the close of the market on August 3. In earnings results for the first quarter, posted on May 4, the firm reported earnings per share of $0.84, beating market expectations by $0.15. The revenue over the period was $2 billion, up 36% year-on-year.
On August 2, investment advisory Credit Suisse raised the price target on Activision Blizzard, Inc. (NASDAQ: ATVI) stock to $125 from $120 and maintained an Outperform rating, noting that the firm was positioned strongly for the transition to online and mobile gaming.
At the end of the first quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Activision Blizzard, Inc. (NASDAQ: ATVI), down from 81 in the preceding quarter worth $3.7 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and Activision Blizzard, Inc. (NASDAQ: ATVI) was one of them. Here is what the fund said:
“The portfolio established a position in video game publisher Activision Blizzard. As a watchlist company we have followed Activision for several years. As a reminder the role of the watchlist is to allow us to focus on a select group of companies where we seek to observe important signals around either value latency, industry trends or management behaviour that portend attractive investment propositions.
Technology can often play a disruptive role in content, however video games are a clear beneficiary of technology, both in terms of more immersive and realistic gaming experiences as well as the monetisation opportunities this creates…” (Click here to see the full text)
You can also take a peek at 15 Best High Volume Stocks to Buy Now and 10 Best Up and Coming Stocks to Invest In.
