In this article, we discuss the 5 stocks that tripled in 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks that Tripled in 2021.
5. Dillard’s, Inc. (NYSE:DDS)
Number of Hedge Fund Holders: 22
Year-To-Date Gain: 500%
Dillard’s, Inc. (NYSE:DDS) operates retail departmental stores. The stock has rallied this year as the economic recovery released pent-up shopping demand and the holiday season, forecast to be a record one for retail companies in terms of sales, approaches.
Dillard’s, Inc. (NYSE:DDS) recently posted earnings for the third quarter, reporting earnings per share of $9.81, beating estimates by $2.49. The revenue over the period was $1.5 billion, up 43% year-on-year.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Dillard’s, Inc. (NYSE:DDS) with 112,500 shares worth more than $19 million.
In its Q4 2020 investor letter, Longleaf Partners Small-Cap Fund, an asset management firm, highlighted a few stocks and Dillard’s, Inc. (NYSE:DDS) was one of them. Here is what the fund said:
“Dillard’s (-48%, -2.80%; –, –), the department store, detracted for the year. We had successfully owned the company during a downturn before and felt that we were paying a low mid-single-digit multiple on stable FCF with a great management team in charge when we first initiated the position in 2019. Our case was supported by the potential for management to monetize part of the company’s valuable owned retail real estate footprint for higher and better uses. COVID lockdowns, however, permanently impaired these values, as well as the company’s ability to go on offense with share buybacks, despite great efforts during the crisis by CEO Bill Dillard. We sold our position in the second quarter as the price-to-value gap closed and our case had changed materially.”
4. Veritiv Corporation (NYSE:VRTV)
Number of Hedge Fund Holders: 11
Year-To-Date Gain: 571%
Veritiv Corporation (NYSE:VRTV) provides packaging products and services. The company has beaten market expectations on earnings per share and revenue for the past two quarters and also raised guidance for the fiscal year, boosting investor confidence and sending the share price soaring.
Deutsche Bank analyst Nicole DeBlase recently raised the price target on Veritiv Corporation (NYSE:VRTV) stock to $32 from $30 and kept a Buy rating on the shares, appreciating the third quarter earnings results of the firm.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $354 million in Veritiv Corporation (NYSE:VRTV), up from 14 in the preceding quarter worth $254 million.
3. Avis Budget Group, Inc. (NASDAQ:CAR)
Number of Hedge Fund Holders: 26
Year-To-Date Gain: 708%
Avis Budget Group, Inc. (NASDAQ:CAR) provides car and truck rentals. The short interest on the stock is at 36% but it has rallied amid interest from retail investors on Reddit who have been involved in short squeeze action heavily this year.
Avis Budget Group, Inc. (NASDAQ:CAR) has received analyst downgrades from investment advisors like Barclays, JPMorgan, and Deutsche Bank recently. The company has a market cap of $17 billion and posted $5 billion in revenue last year.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Investment Management is a leading shareholder in Avis Budget Group, Inc. (NASDAQ:CAR) with 18.4 million shares worth more than $2.1 billion.
2. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 9
Year-To-Date Gain: 1,213%
GameStop Corp. (NYSE:GME) is a specialty retailer of games and entertainment products. The stock has rallied amid an increase in video game sales ahead of holiday season and announcements about movements of the company into the NFT and crypto markets.
GameStop Corp. (NYSE:GME) was involved in the most famous short squeeze of the year in January as the hedge funds suffered losses worth billions in trying to cover their short positions after the share price skyrocketed amid interest from retail investors.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 2.1 million shares worth more than $373 million.
In its Q1 2021 investor letter, Rhizome Partners, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“The first quarter saw some bizarre market reactions. Game Stop is a heavily shorted legacy video game retailer that saw its stock price rise from $17 to a peak of $483 within a month. It appears that retail investors on a Reddit.com forum called WallStreetBets used memes to create a viral feedback loop of forced buying. Game Stop reached $20 billion in market cap and had more daily trading volume than Apple at one point. The Game Stop short squeeze became a black swan event for the short sellers. Large hedge funds such as Melvin Capital suffered 50% losses during a short period and required emergency capital injections that resulted in costly dilution. Shorting is difficult and introduces a risk of ruin. This is especially true in situations where a large percentage of the float is shorted. We want to remind you that we hedge our portfolio via index puts, sector puts, and sometimes buying puts directly in our own portfolio companies. However, we rarely short because 1) we are not good at it 2) the potential for brain damage is too high and 3) we want to avoid the risk of ruin.”
1. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
Year-To-Date Gain: 1,845%
AMC Entertainment Holdings, Inc. (NYSE:AMC) operates in the theatrical exhibitions business. Even though cinema audiences, a key source of revenue for the company, have returned as public spaces reopen following a torrid 2020, they are still yet to reach the numbers touched in 2019 and there are debates about the relevance of cinemas in the digital world.
AMC Entertainment Holdings, Inc. (NYSE:AMC) beat market estimates on earnings per share and revenue in the third quarter and has also stepped up investments in the crypto universe as it seeks to diversify away from the theatrical business.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $252 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), down from 21 in the preceding quarter worth $404 million.
In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:
“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
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