Here’s Why Traders Are Buzzing About These Five Stocks Today

On ‘Brexit’ vote day, the markets are in an optimistic mood as all three indexes are in the green after the opening.

Among the stocks in the spotlight are Twitter Inc (NYSE:TWTR), Viacom, Inc. (NASDAQ:VIA), Alibaba Group Holding Ltd (NYSE:BABA), Fiat Chrysler Automobiles NV (NYSE:FCAU), and CACI International Inc (NYSE:CACI). Let’s analyze each stock in more detail and see how the smart money investors from our database are positioned towards them.

At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).

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Twitter Close to Announcing Live Content Deals

In its quest to improve monetization and profits, Twitter Inc (NYSE:TWTR) is pushing more into the live content space. The social media company is purportedly close to announcing the completion of several deals to broadcast political debates and sports games. In April, Twitter agreed to stream 10 NFL games for free for the 2016 season. If similar future deals with other sports and events are announced and the results bring more profits to Twitter, traders might take a more bullish view on the stock. Of the 766 elite funds we track, 27 funds owned $403.17 million worth of Twitter Inc (NYSE:TWTR)’s stock, which accounted for 3.50% of the float on March 31, versus 30 funds and $320.88 million, respectively, a quarter earlier.

Viacom Shakeup on Hold For Now

Controlling voting shareholder Sumner Redstone’s quest to shake up and replace some of Viacom, Inc. (NASDAQ:VIA)‘s board of directors has met a roadblock. On Wednesday, a Delaware judge said he would put Redstone’s plan on hold until another court decided whether Redstone is mentally capable to make such type of decisions. Sumner Redstone is 93 years old. Shares of the company are up by 9% year-to-date and trade for under 9 times forward earnings.

On the next page, we examine Alibaba Group Holding Ltd, Fiat Chrysler Automobiles NV, and CACI International Inc.

Alibaba Founder Jack Ma Clarifies Comments

Alibaba Group Holding Ltd (NYSE:BABA) founder Jack Ma wrote an opinion piece in the Wall Street Journal on Wednesday, clarifying that:

“Counterfeit goods are absolutely unacceptable, and brands and their intellectual property must be protected. Alibaba is only interested in supporting those manufacturers who innovate and invest in their own brands. We have zero tolerance for those who rip off other people’s intellectual property.”

Ma had previously said that some counterfeit goods were higher quality and lower price than the legitimate ones. Ma’s earlier comments were somewhat misconstrued out of context by the media, however. A total of 67 funds from our database had a long position in Alibaba Group Holding Ltd (NYSE:BABA) at the end of March.

Fiat Chrysler Speeds Up Software Update

After the recent death of Star Trek actor, Anton Yelchin, Fiat Chrysler Automobiles NV (NYSE:FCAU) is accelerating its recall of 1.1 million vehicles to lower the probability of rollaway risks. Yelchin was killed when his Jeep Grand Cherokee rolled away and hit him. Fiat Chrysler’s fix ‘eliminates the possibility of the driver inadvertently failing to place the transmission into ‘PARK’ prior to exiting the vehicle’. At the end of March, 28 funds tracked by us owned shares of Fiat Chrysler Automobiles NV (NYSE:FCAU), unchanged over the quarter.

CACI Provides Guidance

CACI International Inc (NYSE:CACI) is trading 9% lower after the company provided relatively lackluster fiscal 2017 revenue guidance. For the year, CACI expects EPS in the range of $6.02 to $6.43 on revenue of $4.05 to $4.25 billion, versus estimates of $6.50 per share on sales of $4.4 billion. Howeverm the company reiterated its fiscal 2016 guidance. The number of funds from our database with holdings in CACI International Inc (NYSE:CACI) inched up by two quarter-over-quarter to 17 at the end of March.

Disclosure: none