In this article, we discuss the 5 stocks to buy to profit from post-COVID economic recovery. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks to Buy to Profit from Post-COVID Economic Recovery.
5. Live Nation Entertainment, Inc. (NYSE: LYV)
Number of Hedge Fund Holders: 37
Live Nation Entertainment, Inc. (NYSE: LYV) is an entertainment company that manages ticket sales for different kinds of live events. Over the past few weeks, the stock has climbed close to 17% as concerts resume and bring in much-needed revenue for the company after a disappointing 2020. The firm is ranked fifth on our list of 10 stocks to buy to profit from post-COVID economic recovery. The stock has offered investors returns exceeding 117% over the course of the past twelve months.
On May 14, investment advisory Wolfe Research initiated coverage on Live Nation Entertainment, Inc. (NYSE: LYV) stock with an Outperform rating and a price target of $97 on the back of expectations of strong growth as the economy reopened following the pandemic.
Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Live Nation Entertainment, Inc. (NYSE: LYV) with 5.4 million shares worth more than $462 million.
In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Live Nation Entertainment, Inc. (NYSE: LYV) was one of them. Here is what the fund said:
“In 2006, we initiated our position in Live Nation, the global entertainment company that handles promotion, venue management and ticket sales for live events. Live Nation was spun out of the former Clear Channel Communications in late 2005. In our view, spinoffs often represent attractive opportunities because investors frequently undervalue the new company. We believed this was the case with Live Nation, especially given its initially small market capitalization. As well, when spinoffs are freed from their parents, they typically benefit from intensified management focus and more flexible capital allocation policies. In Live Nation’s case, the spinoff helped make possible the merger with Ticketmaster in 2010, which materially improved the business franchise. Although these factors alone might have made Live Nation a good holding for the Fund, an unexpected technology helped to boost the company’s fortunes: streaming. As the advantages of streaming convinced consumers to reduce or even eliminate their purchases of media, such as CDs and DVDs, artists began to tour more, thereby providing a tailwind to Live Nation’s operations. This accelerated growth in the company’s intrinsic value per share, which in turn generated numerous increases in our sell target for the holding, enabling us to continue to own the shares in the Fund for 14 years. We typically target a three- to five-year holding period for our equity investments, but we love opportunities like Live Nation, which achieve unanticipated intrinsic value growth.”
