In this article, we will discuss the 5 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management. If you want to read our detailed analysis of Frohlich’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Buy Today According to Phil Frohlich’s Prescott Group Capital Management.
5. NVIDIA Corporation (NASDAQ: NVDA)
Frohlich’s Stake Value: $7,601,000
Percentage of Phil Frohlich’s 13F Portfolio: 2.14%
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ: NVDA) is an American multinational technology company. It was founded in 1993 and is placed fifth on the list of 10 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management.
The hedge fund managed by Phil Frohlich owns 9,500 shares in NVIDIA Corporation (NASDAQ: NVDA), worth over $7.60 million, representing 2.14% of their portfolio. Prescott Group Capital Management has increased its stake in the firm by 90% in the second quarter of 2021. Hedge fund sentiment increased for NVIDIA Corporation (NASDAQ: NVDA) in the second quarter. Insider Monkey’s data shows that 86 elite hedge funds held stakes in the company in the second quarter, up from 80 funds a quarter earlier.
Baron Opportunity Fund, in its second quarter of 2021 investor letter, mentioned NVIDIA Corporation (NASDAQ: NVDA). Here is what Baron Opportunity Fund has to say about NVIDIA Corporation in its letter:
“NVIDIA Corporation is a fabless semiconductor company and a leader in gaming cards and accelerated computing chips. Shares of NVIDIA rose in the second quarter on financial results and guidance significantly above Street expectations, as it benefited from the upgrade cycle in its gaming franchise along with continued AI-related strength driving its data center segment. NVIDIA’s total revenues of $5.66 billion beat Street expectations by $266 million, growing 84% (including the benefit of acquisitions, 65% organic), with its gaming business growing over 100% and its data center business expanding nearly 80%. We remain confident in NVIDIA’s leading position in gaming, data centers, and autonomous machines.”
4. Cloudflare, Inc. (NYSE: NET)
Frohlich’s Stake Value: $8,280,000
Percentage of Phil Frohlich’s 13F Portfolio: 2.34%
Number of Hedge Fund Holders: 43
Cloudflare, Inc. (NYSE: NET) is a cloud platform that provides a variety of network services to companies worldwide. It was incorporated in 2009 and stands fourth on the list of 10 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management.
On August 11, Cloudflare, Inc. (NYSE: NET) announced that it issued 0% senior unsecured notes due August 15, 2026, whose principal amount is $1.125 billion. In addition, initial bidders were allowed to buy up to an additional $168.75 million worth of notes. Cloudflare, Inc. (NYSE: NET) intends to use around $75 million of the net proceeds to cover the cost of capped call transactions, with the remainder going to general corporate purposes. On August 6, RBC Capital analyst Matthew Hedberg raised the price target on Cloudflare, Inc. (NYSE: NET) to $130 from $100 and kept an “Outperform” rating on the shares.
The hedge fund managed by Phil Frohlich owns 78,228 shares in Cloudflare, Inc. (NYSE: NET), worth over $8.28 million, representing 2.34% of their portfolio. Prescott Group Capital Management has decreased its stake in the firm by 41% in the second quarter of 2021. Cloudflare, Inc. (NYSE: NET) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions reduced to 43 in the second quarter of 2021, compared to 45 positions in the previous quarter.
Alger, in its second-quarter 2021 investor letter mentioned Cloudflare, Inc. (NYSE: NET). Here is what the fund said:
“Cloudflare provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic with over 17% of global internet requests going through Cloudflare. The company’s serverless network design allows this global network to be a key component layer as new developments for edge computing, 5G and the Internet of Things increase the importance of secure, reliable edge networks.
Cloudflare stock outperformed in the second quarter following a strong earnings report for the first three months of this year during which the company reaccelerated revenue growth. This revenue reacceleration was driven by momentum in Cloudflare’s large customer segment. Cloudflare added a record number of large customers who now account for more than half of Cloudflare’s total revenue. We think that Cloudflare is currently still in the early stages of market penetration, which means it has potential to maintain high levels of growth within its large customer segment as the company continues to innovate within its product offerings to better serve these large, complex customers. Cloudflare’s leadership in product innovation was further validated by the company’s second quarter announcement of a new partnership with NVIDIA Corporation to develop Al-based applications on Cloudflare’s edge network.”
3. Nature’s Sunshine Products, Inc. (NASDAQ: NATR)
Frohlich’s Stake Value: $13,453,000
Percentage of Phil Frohlich’s 13F Portfolio: 3.8%
Number of Hedge Fund Holders: 11
Nature’s Sunshine Products, Inc. (NASDAQ: NATR) primarily makes and distributes nutritional and personal care products. The company was founded in 1972 and is placed third on the list of 10 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management. Phil Frohlich’s bet on Nature’s Sunshine Products, Inc. (NASDAQ: NATR) is also paying off. Shares of the company surged 25.35% over the last 12 months.
On August 5, Nature’s Sunshine Products, Inc. (NASDAQ: NATR) announced earnings for the second quarter of 2021. It posted earnings per share of $0.32, compared to the earnings per share of $0.20 for the first quarter of 2021. Revenue for the second quarter was $109 million, up 24.9% YoY.
Phil Frohlich’s Prescott Group Capital Management holds 774,468 shares of Nature’s Sunshine Products, Inc. (NASDAQ: NATR), worth $13.45 million. Overall, hedge funds are loading up on Nature’s Sunshine Products, Inc. (NASDAQ: NATR), as 11 out of 873 funds tracked by Insider Monkey held stakes in the company in the second quarter of 2021, compared to 9 funds a quarter earlier.
2. Civeo Corporation (NYSE: CVEO)
Frohlich’s Stake Value: $15,036,000
Percentage of Phil Frohlich’s 13F Portfolio: 4.25%
Number of Hedge Fund Holders: 10
Civeo Corporation (NYSE: CVEO) is a global corporation that provides lodging services in the United States. The company was founded in 2013, and it stands second on the list of 10 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management.
On July 30, Civeo Corporation (NYSE: CVEO) declared earnings for the second quarter of 2021. It posted earnings per share of -$0.03, beating the anticipation by $0.06. Revenue for the second quarter was $154.2 million, up 34.4% YoY.
The hedge fund chaired by Phil Frohlich owns 844,722 shares in Civeo Corporation (NYSE: CVEO) worth $15.04 million, representing 4.25% of their investment portfolio. According to our database, the number of Civeo Corporation (NYSE: CVEO) long hedge funds positions increased in the second quarter of 2021. There were 10 hedge funds that hold a position in Civeo Corporation (NYSE: CVEO) compared to 9 funds in the first quarter of 2021. Murray Stahl’s Horizon Asset Management is the company’s most significant stakeholder, with 3.58 million shares worth $61.55 million.
1. Performant Financial Corporation (NASDAQ: PFMT)
Frohlich’s Stake Value: $47,045,000
Percentage of Phil Frohlich’s 13F Portfolio: 13.3%
Number of Hedge Fund Holders: 10
Performant Financial Corporation (NASDAQ: PFMT) offers technology-enabled audit, recovery, outsourcing customer, and associated analytics services. The company was incorporated in 1976 and is ranked first on the list of 10 stocks to buy today according to Phil Frohlich’s Prescott Group Capital Management. Shares of Performant Financial Corporation (NASDAQ: PFMT) surged 511.64% in the past 12 months.
On August 17, Performant Financial Corporation (NASDAQ: PFMT) announced that it launched an underwritten offering in which it publicly offered 10.525 million common stock shares. The net proceeds from the public offering will go towards general corporate purposes and for working capital. On July 7, Craig-Hallum analyst George Sutton initiated coverage of Performant Financial Corporation (NASDAQ: PFMT) with a “Buy” rating and gave a price target of $10.
Prescott Group Capital Management holds 12.55 million shares in Performant Financial Corporation (NASDAQ: PFMT), worth $47.05 million, making it the leading shareholder of the company. Performant Financial Corporation (NASDAQ: PFMT) saw an increase in hedge fund sentiment recently. The number of hedge fund positions increased to 10 in the second quarter of 2021 compared to 7 positions in the previous quarter.
You can also take a peek at Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners and 10 Best Defensive Stocks to Buy Today According to Billionaire Ken Fisher
