This article discusses Donald Yacktman’s Yacktman Asset Management top 5 stock picks at the end of June. If you want to know about the fund’s journey, Mr. Yacktman’s career and more about Yacktman Asset Management’s 13F portfolio, please go to Donald Yacktman’s Latest Portfolio: Top 10 Stock Picks.
5. The Procter & Gamble Company (NYSE:PG)
Yacktman Asset Management’s Stake Value: $438,805,000
Percentage of Yacktman Asset Management’s 13F Portfolio: 4.55%
Number of Hedge Fund Holders(Q1): 72
One of the best defensive stocks, The Procter & Gamble Company (NYSE:PG) has had quite a journey in the last one year. Late last year, when recessionary fears were growing, and funds were piling on safe defensive names, The Procter & Gamble Company’s (NYSE:PG) stock started moving up and made its all-time high of $165.35. However, as those fears receded, the stock also came down and is now trading at the same levels it traded at a year prior.
On July 29, The Procter & Gamble Company (NYSE:PG) reported earnings per share of $1.22 on revenue of $19.52 billion for the fourth quarter of its fiscal year 2022. Though the company managed to beat analysts’ revenue expectations for the period by $104.13 million, its EPS number missed analysts’ estimate by $0.01.
4. Alphabet Inc. (NASDAQ:GOOG)
Yacktman Asset Management’s Stake Value: $453,415,000
Percentage of Yacktman Asset Management’s 13F Portfolio: 4.7%
Number of Hedge Fund Holders(Q1): 205
Search giant Alphabet Inc. (NASDAQ:GOOG) has remained Yacktman Asset Management’s fourth favourite stock pick for the past three quarters. Alphabet Inc. (NASDAQ:GOOG) is also one of the most popular companies among the 912 hedge funds we cover, with 160 hedge funds reporting holding the company’s class C stock and 205 reporting holding the class A stock at the end of March.
According to a report published in Politico on August 8, the EU antitrust regulators have started probing Alphabet Inc.’s (NASDAQ:GOOG) Play Store rules. The regulators have already started asking the company’s competitors about Alphabet Inc.’s (NASDAQ:GOOG) billing terms and developer fees. A similar investigation was taken up by the antitrust regulators in the Netherlands in May this year. However, according to the report, that investigation will likely close soon to make room for the present investigation.
3. Microsoft Corp. (NASDAQ:MSFT)
Yacktman Asset Management’s Stake Value: $499,028,000
Percentage of Yacktman Asset Management’s 13F Portfolio: 5.17%
Number of Hedge Fund Holders(Q1): 259
With 259 funds reporting a stake worth in aggregate $65.6 billion, Microsoft Corp. (NASDAQ:MSFT) was the second most popular stock at the end of the first quarter among the 912 hedge funds we track. Microsoft Corp. (NASDAQ:MSFT) has also been one of the most resilient stocks in the tech sector this year. Although the company’s stock is trading lower by 2% year-to-date, Microsoft Corp. (NASDAQ:MSFT) still trades comfortably above the $2 trillion market cap figure.
31 of the 32 analysts covering Microsoft Corp. (NASDAQ:MSFT) on Wall Street currently have a ‘Buy’ rating on the stock with a consensus price target of $335.72. On July 29, analysts at Wolfe Research reiterated their ‘Outperform’ rating but cut their price target on the stock to $275 from $320.
2. PepsiCo, Inc. (NYSE:PEP)
Yacktman Asset Management’s Stake Value: $709,361,000
Percentage of Yacktman Asset Management’s 13F Portfolio: 7.35%
Number of Hedge Fund Holders(Q1): 62
PepsiCo, Inc.’s (NYSE:PEP) stock has been flying high this year, registering a 13.12% gain year-to-date. However, its popularity among smart money has remained steady, with 64 hedge funds tracked by us reporting a stake in PepsiCo, Inc. (NYSE:PEP) at the end of March, the same number that reported a stake at the end of 2021.
On August 2, PepsiCo, Inc. (NYSE:PEP) announced that it had signed a strategic agreement with Romanian spring water company AQUA Carpatica to acquire a 20% equity stake in the latter. The company didn’t disclose the terms of this deal, but Silviu Popovici, CEO of PepsiCo Europe, said, “We are confident that AQUA Carpatica’s strong brand equity will resonate with our customers and consumers globally.”
1. Canadian Natural Resources Limited (NYSE:CNQ)
Yacktman Asset Management’s Stake Value: $906,817,000
Percentage of Yacktman Asset Management’s 13F Portfolio: 9.4%
Number of Hedge Fund Holders(Q1): 32
Canadian Natural Resources Limited (NYSE:CNQ), which became Yacktman Asset Management’s top stock pick at the end of the second quarter, remained the fund’s favourite stock at the end of June. Shares of the Canadian oil and gas giant, like most of its peers, have appreciated significantly this year and are currently trading up 60% year-to-date.
For the second quarter of 2022, Canadian Natural Resources Limited (NYSE:CNQ) reported net earnings of C$3.5B, more than double from C$1.55B that it had reported for the same quarter in the previous year. Along with its earning release, Canadian Natural Resources Limited (NYSE:CNQ) also revealed that it is upping its capital spending guidance for the year to C$4.92B from the C$4.345B it had guided previously. During its earnings announcement, the company also declared a special dividend of C$1.5 per share, including which it has returned $6.4 billion to shareholders this year alone.
You can also check out: Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks and 7 Best Stocks to Buy According to Stephen Feinberg’s Cerberus Capital Management
