In this article, we discuss 5 stocks to buy according to John Hurley’s Cavalry Asset Management. If you want to read our detailed analysis of Hurley’s investment philosophy and performance, go directly to 10 Stocks to Buy According to John Hurley’s Cavalry Asset Management.
5. Uber Technologies, Inc. (NYSE:UBER)
Cavalry Asset Management’s Stake Value: $72,029,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 5.5%
Number of Hedge Fund Holders: 144
Uber Technologies, Inc. (NYSE:UBER) is a mobility technology firm located in California. As of August 1, the stock has fallen by about 47% year-to-date. Uber Technologies, Inc. (NYSE:UBER) is expanding in the massive ridesharing and delivery industry, but is struggling to remain profitable even as drivers bear more than 75% of the costs.
In the first quarter of 2022, Cavalry Asset Management purchased 2.02 million shares of Uber Technologies, Inc. (NYSE:UBER), worth $72.03 million. That represented 5.5% of the hedge fund’s portfolio value. Out of the hedge funds tracked by Insider Monkey, 144 reported having ownership stakes in Uber Technologies, Inc. (NYSE:UBER) as of the end of the first quarter of 2022, down from 153 a quarter earlier. The aggregate value of hedge funds’ Q1 holdings stood at $8.48 billion.
In advance of the company’s Q2 results, Deutsche Bank analyst Benjamin Black reiterated a ‘Buy’ recommendation on Uber Technologies, Inc. (NYSE:UBER), while cutting his price objective to $40 from $50. According to the expert, there is far greater concern about the issuer’s supply side, which is negatively affects investor sentiment.
On August 2, Uber Technologies, Inc. (NYSE:UBER) reported its financial results for the second quarter, posting a loss per share of $1.33, missing estimates by $1.06. However, Monthly Active Platform Consumers (“MAPCs”) was up 21% from the prior-year quarter, reaching 122 million.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q3 2021 investor letter. Here’s what it said:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber Technologies, Inc. (NYSE:UBER) will also be a key player in the transition from internal combustion engines to EVs.”
4. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Cavalry Asset Management’s Stake Value: $72,412,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 5.52%
Number of Hedge Fund Holders: 29
Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs, develops and distributes integrated power semiconductor systems and power delivery architectures. Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s revenue has increased at a CAGR of 23% over the previous five years, owing to its increasing and highly in-demand power product line. Cowen analyst Matthew Ramsay boosted his price objective on Monolithic Power Systems, Inc. (NASDAQ:MPWR) to $600 from $550 on August 2 and maintained an ‘Outperform’ rating on the stock.
Securities filings reveal that Cavalry Asset Management boosted its stake in Monolithic Power Systems, Inc. (NASDAQ:MPWR) by 139% during the first quarter of 2022. The fund thus owns 149,095 shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR), worth over $72.41 million, and representing 5.52% of the value of its 13F portfolio.
29 hedge funds tracked by Insider Monkey reported having bullish bets on Monolithic Power Systems, Inc. (NASDAQ:MPWR) as of the end of the first quarter of 2022, with an aggregate worth of $1.19 billion. Whale Rock Capital Management, with a position worth $369 million, stood as the most significant shareholder of Monolithic Power Systems, Inc. (NASDAQ:MPWR).
In its Q3 2021 investor letter, Alger, an investment management firm, mentioned Monolithic Power Systems, Inc. (NASDAQ:MPWR) and discussed its stance on the firm. Here is what the fund said:
“Monolithic Power Systems, Inc. was among the top contributors to performance. Monolithic Power Systems is a semiconductor company that designs, develops and markets high-performance power solutions. Its core strengths include deep system-level applications knowledge, strong analog design expertise and innovative proprietary process technologies, which enable the company to deliver highly integrated products that are energy efficient, cost effective and easy to use. Monolithic serves the consumer, computing and storage, industrial, automotive and communications end markets. Its strong process technology and use of partners to produce silicon wafers is a unique combination that provides the company with an unencumbered ability to innovate and offer nimble yet scaled manufacturing. Shares of Monolithic outperformed after the company said it produced very strong second quarter results and provided third quarter guidance that exceeded consensus expectations. Monolithic’s revenue growth accelerated in an environment in which most analog and broader semiconductor peers have struggled with industry-wide supply constraints. The company is benefiting from its continuous investments in capacity and its ability to carry inventories during previous times of weak demand. The results also underscore the success the company is having with winning contracts to provide sockets, which connect computer motherboards to CPUs. We believe the results increased investor confidence that the company can sustain this strong revenue growth, which is well above the industry average, over the next one to two years.”
3. Lyft, Inc. (NASDAQ:LYFT)
Cavalry Asset Management’s Stake Value: $77,198,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 5.89%
Number of Hedge Fund Holders: 47
Lyft, Inc. (NASDAQ:LYFT) is the owner and operator of a ride-hailing company in the U.S., with market share of about 29%. It is available in more than 645 U.S. and 10 Canadian cities. Lyft, Inc. (NASDAQ:LYFT)’s stock has faced problems this year, as the value of its shares has been reduced by more than 75% over the last 12 months and by 66.7% year-to-date.
In an extensive research note on ridesharing companies, MKM Partners analyst Rohit Kulkarni maintained a ‘Neutral’ rating on Lyft, Inc. (NASDAQ:LYFT) while lowering his price objective from $32 to $17 on July 27. The analyst highlighted that the group has underperformed because investors are worried about demand expectations with rising inflation, supply dynamics with high oil prices, and profitability prospects beyond recovery tailwinds.
Cavalry Asset Management loaded up on Lyft, Inc. (NASDAQ:LYFT) in the first quarter, increasing its holding in the company by 52%. The hedge fund owns 2.01 million shares of Lyft, Inc. (NASDAQ:LYFT), worth $77.20 million. With combined positions worth $994 million, 47 hedge funds were long Lyft, Inc. (NASDAQ:LYFT) at the end of the first quarter of 2022. This shows positive sentiment from the previous quarter, when 43 hedge funds had $762 million in Lyft, Inc. (NASDAQ:LYFT) positions. Alkeon Capital Management is the biggest shareholder of Lyft, Inc. (NASDAQ:LYFT) as of March 31, with a massive $218 million stake.
In its Q1 2022 investor letter, Rowan Street Capital LLC mentioned Lyft, Inc. (NASDAQ:LYFT). Here is what the fund said:
“Lyft, Inc. (NASDAQ:LYFT): We sold Lyft, Inc. (NASDAQ:LYFT) in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”
2. Palo Alto Networks, Inc. (NASDAQ:PANW)
Cavalry Asset Management’s Stake Value: $100,551,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 7.67%
Number of Hedge Fund Holders: 87
Palo Alto Networks, Inc. (NASDAQ:PANW) provides businesses, service providers, and governmental organizations with network security solutions. Palo Alto Networks, Inc. (NASDAQ:PANW) shares have offered investors 24.68% returns over the past year as of August 1, despite the bear market in 2022.
On August 1, Wolfe Research analyst Joshua Tilton initiated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW), rating the stock at ‘Outperform’ and with a price objective of $700. According to the analyst, Palo Alto Networks, Inc. (NASDAQ:PANW) is a “consensus long” because investors want to invest in firms that can offer both growth and free cash flow margins at alluring prices.
In the first quarter of 2022, 87 hedge funds were bullish on Palo Alto Networks, Inc. (NASDAQ:PANW), up from 73 funds in the preceding quarter. Joe Dimenna’s ZWEIG DIMENNA PARTNERS is a significant stakeholder of Palo Alto Networks, Inc. (NASDAQ:PANW), with 25,680 shares worth over $12.68 million.
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the newest acquisitions of Cavalry Asset Management, being added to the fund’s portfolio in Q1. The hedge fund held nearly $101 million in PANW shares, representing 7.67% of its 13F portfolio’s exposure.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Cavalry Asset Management’s Stake Value: $129,870,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 9.91%
Number of Hedge Fund Holders: 83
The American semiconductor company, beat Intel Corporation (NASDAQ:INTC) in terms of market cap on August 1. AMD’s market capitalization grew by 3.05% to $94.47 per share, pushing the company’s market cap to $153 billion. In contrast, shares of Intel decreased roughly 9% to $36.31 per share, giving the rival chipmaker a market value of $148 billion.
On July 20, Ross Seymore, an analyst at Deutsche Bank, reiterated a ‘Hold’ rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) while decreasing the price objective on the stock from $115 to $85. Seymore advised investors in a research note that the semiconductor cycle is still in a state of limbo.
Hedge funds were recently seen loading up on Advanced Micro Devices, Inc. (NASDAQ:AMD). 83 hedge funds reported ownership of AMD positions as of the end of the first quarter of 2022, compared to 69 hedge funds as of the end of the fourth quarter of 2021. With a stake valued at more than $6.50 million, Crestwood Capital Management is a prominent stakeholder of Advanced Micro Devices, Inc. (NASDAQ:AMD).
In its Q4 2021 investor letter, Carillon Tower Advisers mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD). Here is what the fund said:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
You can also take a peek at 10 Stocks to Buy According to Francis Chou’s Chou Associates Management and 10 Stocks to Buy According to William Von Mueffling’s Cantillon Capital Management
