In this article, we discuss 5 value stock picks of billionaire Stanley Druckenmiller in 2022. If you want to see more value picks in his portfolio, click Billionaire Stanley Druckenmiller’s 2022 Portfolio: 10 Value Stock Picks.
5. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 41
P/E Ratio as of May 18: 16.66
Phillips 66 (NYSE:PSX) is a Texas-based energy manufacturing and logistics company, operating through four segments – Midstream, Chemicals, Refining, and Marketing and Specialties. Stanley Druckenmiller’s fund purchased 113,335 shares of Phillips 66 (NYSE:PSX) in Q1 2022, worth $9.7 million, representing 0.42% of the overall 13F portfolio.
On May 11, Phillips 66 (NYSE:PSX) declared a $0.97 per share quarterly dividend, a 5.4% increase from its prior dividend of $0.92. The dividend is payable on June 1, to shareholders of the company as of May 23. The company delivered on May 18 a dividend yield of 4.06%.
Phillips 66 (NYSE:PSX) reported earnings for Q1 2022 on April 29, announcing an EPS of $1.32, beating estimates by $0.11. The revenue grew 67.47% year-over-year to $36.72 billion, topping market forecasts by $1.51 billion.
JPMorgan analyst Phil Gresh on May 18 raised the price target on Phillips 66 (NYSE:PSX) to $112 from $102 and kept an Overweight rating on the shares. The analyst boosted estimates and price targets for the refining group.
Among the hedge funds tracked by Insider Monkey, 41 funds reported owning stakes in Phillips 66 (NYSE:PSX) at the end of Q4 2021, up from 34 funds in the earlier quarter. Billionaire Israel Englander’s Millennium Management disclosed a $256.5 million stake in the company at the conclusion of Q1 2022.
4. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 46
P/E Ratio as of May 18: 8.75
The Mosaic Company (NYSE:MOS) produces and sells phosphate and potash crop nutrients in North America and internationally. The Mosaic Company (NYSE:MOS) is a new arrival in Stanley Druckenmiller’s Q1 portfolio, with the billionaire purchasing 143,825 shares of the company, worth $9.5 million.
On May 2, The Mosaic Company (NYSE:MOS) reported financial results for the first quarter of 2022. The company announced an EPS of $2.41, below analysts’ estimates by $0.01. The revenue grew 70.75% year-over-year to $3.92 billion, falling below Street consensus by $125.16 million.
Mizuho analyst Christopher Parkinson on April 29 raised the price target on The Mosaic Company (NYSE:MOS) to $89 from $59 and kept a Buy rating on the shares. According to the analyst, while the global agriculture macro backdrop “is increasingly appearing conducive for a multi-year bullish call,” share pullbacks will be “short and shallow, but nonetheless worth waiting for at this juncture”.
Among the hedge funds tracked by Insider Monkey, 46 funds were bullish on The Mosaic Company (NYSE:MOS) at the end of December 2021, up from 40 funds in Q3. In the first fiscal quarter of 2022, Eric W. Mandelblatt’s Soroban Capital Partners held a leading stake in the company, with about 5 million shares worth $328.3 million.
Here is what Ariel Investments has to say about The Mosaic Company (NYSE:MOS) in its Q4 2021 investor letter:
“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”
3. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 18
P/E Ratio as of May 18: 12.45
AbCellera Biologics Inc. (NASDAQ:ABCL) is based in Vancouver, Canada, operating an artificial intelligence-powered antibody discovery platform. Stanley Druckenmiller’s hedge fund owned 659,750 shares of AbCellera Biologics Inc. (NASDAQ:ABCL) in Q1 2022, worth $6.4 million, representing 0.27% of the total 13F holdings.
AbCellera Biologics Inc. (NASDAQ:ABCL) reported earnings for Q1 on May 10, posting an EPS of $0.54, exceeding analysts’ consensus estimates by $0.12. The revenue grew 56.15% year-over-year to $316.58 million, topping Street forecasts by $96.83 million.
On May 11, Piper Sandler analyst Do Kim lowered the price target on AbCellera Biologics Inc. (NASDAQ:ABCL) to $21 from $28 and maintained an Overweight rating on the shares. The Q1 beat was due to greater royalty revenue from Lilly-partnered COVID-19 antibody sales, the analyst told investors, but cited increased interest rates and higher beta for the price target drop.
In Q1 2022, Julian Baker and Felix Baker’s Baker Bros. Advisors was one of the leading AbCellera Biologics Inc. (NASDAQ:ABCL) shareholders, with 10.45 million shares worth $101.8 million. Overall, according to Insider Monkey’s data, AbCellera Biologics Inc. (NASDAQ:ABCL) was part of 18 hedge fund portfolios in the fourth quarter of 2021.
2. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 40
P/E Ratio as of May 18: 6.60
Teck Resources Limited (NYSE:TECK) is a Vancouver-based natural resources company, serving customers in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. Duquesne Capital added Teck Resources Limited (NYSE:TECK) to its Q1 portfolio by purchasing 2.4 million shares of the company, worth $97.7 million. With a price to earnings ratio of 6.60, Teck Resources Limited (NYSE:TECK) is one of the top value picks of billionaire Stanley Druckenmiller in 2022.
On April 27, Teck Resources Limited (NYSE:TECK) posted Q1 results, announcing earnings per share of $2.31, beating market estimates by $0.06. Revenue for the quarter grew about 90% year-over-year to $3.93 billion, surpassing analysts’ predictions by $16.10 million. The company also declared a C$0.125 per share quarterly dividend, payable on June 30, to shareholders of record on June 15.
CIBC analyst Bryce Adams raised the price target on Teck Resources Limited (NYSE:TECK) to C$52 from C$50 and kept a Neutral rating on the shares on May 2.
William B. Gray’s Orbis Investment Management is a notable shareholder of Teck Resources Limited (NYSE:TECK) as of Q1 2022, with 7.4 million shares worth $299.4 million. Overall, in the fourth quarter of 2021, 40 hedge funds reported owning stakes in the company, collectively worth $1.6 billion.
1. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 40
P/E Ratio as of May 18: 13.23
The PNC Financial Services Group, Inc. (NYSE:PNC) was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania. It operates as a diversified financial services company, offering brokerage, insurance, investment advisory, and cash management services. Stanley Druckenmiller added The PNC Financial Services Group, Inc. (NYSE:PNC) to his Q1 portfolio by acquiring 168,726 shares worth $31.1 million.
The PNC Financial Services Group, Inc. (NYSE:PNC) posted its Q1 2022 results on April 14, announcing an EPS of $3.29, surpassing market estimates by $0.51. The revenue of $4.69 billion was below consensus estimates by $30.49 million.
On April 18, Argus analyst Stephen Biggar lowered the price target on The PNC Financial Services Group, Inc. (NYSE:PNC) to $220 from $245 but maintained a Buy rating on the shares. The company’s Q1 results show improvement in loan growth and the net interest margin, as well as additional credit cost recapture, the analyst told investors in a research note, noting that the stock is well positioned in the current environment.
Among the hedge funds tracked by Insider Monkey, billionaire Ken Griffin’s Citadel Investment Group reported a significant stake in The PNC Financial Services Group, Inc. (NYSE:PNC) at the conclusion of Q1 2022, with 2.5 million shares worth $473.3 million. In the last quarter of 2021, 40 hedge funds were bullish on The PNC Financial Services Group, Inc. (NYSE:PNC), with collective stakes valued at $663 million.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire David Harding and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
