In this article, we take a look at billionaire Richard Chilton’s top 5 stock picks. If you want to see our detailed analysis of Mr. Chilton’s stock picks, go directly to Billionaire Richard Chilton’s Portfolio: Microsoft (MSFT), Home Depot (HD) and More.
5. Union Pacific Corporation (NYSE:UNP)
Richard Chilton’s Stake Value: $182,476,000
Percentage of Richard Chilton’s 13F Portfolio: 4.58%
Number of Hedge Fund Holders: 69
Union Pacific Corporation (NYSE:UNP), through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States. As of December 31, 2020, its rail network included 32,313 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways. Union Pacific Corporation (NYSE:UNP) was founded in 1862 and is headquartered in Omaha, Nebraska.
This July, UNP Loop Capital analyst Rick Paterson upgraded Union Pacific Corporation (NYSE:UNP) to Buy from Hold with a $269 price target.
Richard Chilton owns over 829,000 shares in Union Pacific Corporation (NYSE:UNP), which amounts to a total stake value of $182.47 million. The investment covers 4.58% of Chilton’s 13F portfolio.
As of the second quarter of 2021, Union Pacific Corporation (NYSE:UNP) reported an EPS of $2.73, beating estimates by $0.18. The company also generated revenues of $5.50 billion, up 29.69% year over year, and has beaten expert estimates by $118.17 million.
By the end of the second quarter of 2021, 69 hedge funds out of the 873 tracked by Insider Monkey held stakes in Union Pacific Corporation (NYSE:UNP) worth about $5.03 billion. This is compared to 75 hedge funds in the previous quarter with a total stake value of approximately $4.68 billion.
4. The Home Depot, Inc. (NYSE:HD)
Richard Chilton’s Stake Value: $230,389,000
Percentage of Richard Chilton’s 13F Portfolio: 5.79%
Number of Hedge Fund Holders: 64
The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, building materials, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. The Home Depot, Inc. (NYSE:HD) was incorporated in 1978 and is based in Atlanta, Georgia.
This September, Wells Fargo analyst Zachary Fadem raised his price target on The Home Depot, Inc. (NYSE:HD) to $365 from $360 and reiterated an Overweight rating on the shares.
The Home Depot, Inc. (NYSE:HD) is among the top 5 picks of billionaire Richard Chilton. Mr. Chilton has stakes worth $230.3 million in the company, and the investment represents 5.79% of Chilton’s 13F portfolio.
As of the fiscal second quarter of 2021, The Home Depot, Inc. (NYSE:HD) has reported earnings per share of $4.53 and has beaten EPS estimates by $0.10. The company generated revenues of $41.12 billion, up 8.05% year over year, and has beaten estimates by $380.39 million.
By the end of the second quarter of 2021, 64 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE:HD) worth about $4.17 billion. This is compared to 68 hedge funds in the previous quarter with a total stake value of approximately $4.35 billion.
Distillate Capital, an investment management firm, published its second-quarter 2021 investor letter, in which it mentioned The Home Depot, Inc. (NYSE:HD). Here’s what the firm had to say:
“The largest additions in the rebalance, (included) Home Depot, was around 50 and 40 basis points incrementally. Home Depot outperformed modestly but still lagged its rising normalized cash flow estimate and so was also added to.”
3. Microsoft Corporation (NASDAQ:MSFT)
Richard Chilton’s Stake Value: $273,452,000
Percentage of Richard Chilton’s 13F Portfolio: 6.87%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. It sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online stores, and retail stores. Microsoft Corporation (NASDAQ:MSFT) has collaborations with Dynatrace, Inc., Morgan Stanley, Micro Focus, WPP plc, ACI Worldwide, Inc., and iCIMS, Inc., as well as a strategic relationship with Avaya Holdings Corp. Microsoft Corporation (NASDAQ:MSFT) was founded in 1975 and is headquartered in Redmond, Washington.
This September, Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft Corporation (NASDAQ:MSFT) to $366 from $303 and reiterated a Buy rating on the shares.
Richard Chilton owns over a million shares in Microsoft Corporation (NASDAQ:MSFT), which make up 6.87% of his 13F portfolio. The billionaire’s total stake in the company is more than $273.4 million.
As of the fiscal fourth quarter of 2021, Microsoft Corporation (NASDAQ:MSFT) reported an EPS of $2.17 and has beaten EPS estimates by $0.24. The company has also beaten revenue estimates by $1.85 billion and has reported a revenue of $46.15 billion, up 21.35% year over year.
By the end of the second quarter of 2021, 238 hedge funds out of the 873 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT) worth about $62.46 billion. This is compared to 251 hedge funds in the previous quarter with a total stake value of approximately $58.96 billion.
Baron Opportunity Fund recently published its second-quarter commentary, in which it mentioned Microsoft Corporation (NASDAQ:MSFT). Here’s the fund’s stance on the company:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
2. Ball Corporation (NYSE:BLL)
Richard Chilton’s Stake Value: $283,580,000
Percentage of Richard Chilton’s 13F Portfolio: 7.13%
Number of Hedge Fund Holders: 44
Ball Corporation (NYSE:BLL) supplies aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. It also develops spacecraft, sensors and instruments, radio frequency systems, and other technologies and products for the civil, commercial, and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware, and systems engineering services. Ball Corporation (NYSE:BLL) was founded in 1880 and is headquartered in Westminster, Colorado.
This September, Barclays analyst Michael Leithead raised his price target on Ball Corporation (NYSE:BLL) to $98 from $95 and kept an Equal Weight rating on the shares.
Ball Corporation (NYSE:BLL) is ranked second by value on Richard Chilton’s 13F portfolio. Mr. Chilton has stakes worth 283.5 million in the company. Ball Corporation (NYSE:BLL) makes up 7.13% of Chilton Investment Company’s 13F portfolio.
As of the second quarter of 2021, Ball Corporation (NYSE:BLL) has reported earnings per share of $0.86 and has beaten EPS estimates by $0.03.
By the end of the second quarter of 2021, 44 hedge funds out of the 873 tracked by Insider Monkey held stakes in Ball Corporation (NYSE:BLL) worth about $1.57 billion. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.40 billion.
ClearBridge Investments, an investment management firm, published its “Sustainability Leaders Strategy” first quarter 2021 investor letter in which it mentioned Ball Corporation (NYSE:BLL). Here’s their take on whether or not you should invest in the company:
“Aluminum beverage and food container manufacturer Ball Corp, meanwhile, delivered fourth-quarter operating income slightly lower than consensus, though this was mainly attributable to higher startup costs for large new facilities coming online in North America. These investments and additional capacity projects will contribute to strong volume growth globally, however. Aluminum cans are infinitely recyclable and offer the best replacement product for single-use plastic beverage containers, in our view. They are more likely to be recycled than single-use plastic and are more energy efficient in production as well.”
1. The Sherwin-Williams Company (NYSE:SHW)
Richard Chilton’s Stake Value: $319,844,000
Percentage of Richard Chilton’s 13F Portfolio: 8.04%
Number of Hedge Fund Holders: 49
The Sherwin-Williams Company (NYSE:SHW) develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. It operates in three segments: The Americas Group, Consumer Brands Group, and Performance Coatings Group. The company has operations primarily in North and South America, the Caribbean, Europe, Asia, and Australia. As of December 31, 2021, it operated 4,774 company-operated stores. The Sherwin-Williams Company (NYSE:SHW) was founded in 1866 and is headquartered in Cleveland, Ohio.
This September, Wells Fargo analyst Truman Patterson raised his price target on The Sherwin-Williams Company (NYSE:SHW) to $330 from $325 and kept an Overweight rating on the shares.
Billionaire Richard Chilton owns 1.17 million shares in The Sherwin-Williams Company (NYSE:SHW), which amounts to a total stake value of more than $319.8 million. The investment covers an astounding 8.04% of Chilton Investment Company’s 13F portfolio.
As of the second quarter of 2021, The Sherwin-Williams Company (NYSE:SHW) has reported earnings per share of $2.65, missing estimates by -$0.02.
By the end of the second quarter of 2021, 49 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Sherwin-Williams Company (NYSE:SHW) worth about $2.02 billion. This is compared to 51 hedge funds in the previous quarter with a total stake value of approximately $2.01 billion.
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