Here’s Why These Five Stocks Are Trending Today

Three main US indexes will open in the green yet again. Crude futures are above $48 per barrel while the three main index futures are around half a percentage point higher.

Among the stocks traders are talking about today are Sony Corp (ADR) (NYSE:SNE), The Coca-Cola Co (NYSE:KO), Toyota Motor Corp (ADR) (NYSE:TM), Williams Companies Inc (NYSE:WMB), and Energy Transfer Equity LP (NYSE:ETE). Let’s take a closer look at the latest developments surrounding these stocks and see how the funds tracked by us are positioned towards them.

Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 770 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).

Sony Dives Into VR and Robotics

According to the Financial Times, Sony Corp (ADR) (NYSE:SNE)’s management is placing more emphasis on virtual reality games and robotics to increase the company’s bottom line. Given that Sony has substantial expertise in content production, entertainment, cameras, and shooting, many believe Sony could be well suited to be a major virtual reality player. In addition, Sony is also investing in AI and robotics to achieve its long term profit goals. Sony Management has kept its operating profit goal of around 500 billion Yen ($4.9 billion) for the fiscal 2017 fiscal. A total of 18 funds from our database were long Sony Corp (ADR) (NYSE:SNE) at the end of March, down by two funds from the previous quarter.

New Law Makes Some Coke Products Harder to Purchase in Vermont  

The Coca-Cola Co (NYSE:KO) may pull some of its less popular beverages from Vermont after the state begins enforcing a new GMO label law beginning July 1. According to the law, all products and beverages with genetically modified organisms should be marked with warning labels in the state. Coca Cola spokesman Ben Sheidler said: ‘To avoid multiple labeling changes, some lower-volume brands and packages we offer within our broad portfolio could be temporarily unavailable in Vermont’. The number of funds tracked by us with holdings in The Coca-Cola Co (NYSE:KO) rose by 11 quarter-over-quarter to 62 at the end of March.

On the next page, we examine Toyora Motor Corp., Williams Companies and Energy Transfer Equity LP.

Toyota Recalls Vehicles

According to Reuters, Toyota Motor Corp (ADR) (NYSE:TM) is recalling 3.37 million vehicles over potential defects over emission control units and airbags. An estimated 2.87 million vehicles are being recalled due to potential glitches in the emission control unit while 1.43 million vehicles are being called back due to potential repairs needed for air bag inflators. Some vehicles need both the emission control and airbag inflator fixed. Among the funds we track, 12 funds owned $269.37 million worth of Toyota Motor Corp (ADR) (NYSE:TM), which accounted for 0.20% of the float on March 31, versus 13 funds and $230.4 million, respectively, on December 31.

Energy Transfer Terminates Merger

A few days after a court ruled that Energy Transfer Equity LP (NYSE:ETE) could legally abrogate its planned merger with Williams Companies Inc (NYSE:WMB) due to unforeseen potential tax issues, Energy Transfer announced that it has terminated the merger agreement, which will save the company billions in liquidity. However, Williams Companies has said not so fast and has appealed the court ruling. Although it is unclear which side will win the appeal, both companies could benefit if energy prices continue rising. A total of 52 funds from our database owned shares of Williams Companies Inc (NYSE:WMB) at the end of March, down by seven funds from the previous quarter. In contrast, 31 funds held shares of Energy Transfer Equity LP (NYSE:ETE) at the end of the first quarter, down by just two funds from the previous quarter.

Disclosure: none