Investors Are Buying Up These 5 Stocks Today

U.S stocks are advancing vigorously today, spurred by stellar jobs data out of the country, which showed the largest monthly gain in the last eight months. The Dow Jones is up by approximately 200 points or 1.07%, while the S&P 500 has risen by 1.24%, with financial stocks acting as the locomotive.

Although gun and security stocks are holding the spotlight today after the Dallas shootings, there are other stocks that are surging as well. Let’s take a look at some of them and see what the hedge funds in our database think about each of them.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).

leungchopan/Shutterstock.com

Security Stocks Are Surging

TASER International, Inc. (NASDAQ:TASR) shares are up by nearly 7% today as a reaction to the Dallas shooting. This also seems to be the reason behind Digital Ally, Inc. (NASDAQ:DGLY)‘s rally, which is currently up by 52% from yesterday’s closing price. Digital Ally, Inc. (NASDAQ:DGLY) manufactures and sells audio and video systems and storage for law enforcement and commercial applications.

TASER International, Inc. (NASDAQ:TASR) meanwhile was recently upgraded by analysts at CL King. In a note to investors, the stock was awarded a ‘Buy’ rating, up from the previous ‘Neutral’ rating and given a price target of $32 per share. TASER manufactures and sells stun guns and body-worn cameras for law enforcement, and has a dominant position in both markets according to the firm’s research. CL King also pointed to the fact that the company has little exposure to foreign markets, thus giving it great growth potential. The firm also predicts “accelerating earnings growth and margin expansion going forward.” The Dallas shooting has helped push the stock higher, as investors expect an increase in demand for law enforcement equipment.

The popularity of TASER International, Inc. (NASDAQ:TASR) among the elite hedge funds that we track inched up during the first three months of 2016, residing in the portfolios of 11 funds. Brian Ashford-Russell and Tim Woolley’s Polar Capital reported ownership of 818,410 shares of TASER International in its latest quarterly filing, down by 1% from the end of 2015. Digital Ally, Inc. (NASDAQ:DGLY) was even less popular, as only one of the funds that we track had a stake in the company at the end of the first quarter. D E Shaw, founded by David E. Shaw, indicated ownership of 10,677 Digital Ally shares in its latest 13F filing.

Turn the page to take a look at three other stocks that have found themselves among today’s top gainers.

Major Contract Pushes Euro Tech Higher

Investors are pushing Euro Tech Holdings Co Ltd (NASDAQ:CLWT) shares higher this morning after the company revealed that one of its subsidiaries has received a contract from a foreign mobile phone company. PACT Environmental Technology Company Ltd. has been awarded a $6 million contract for the design, installation and the commissioning of industrial wastewater treatment and scrubber systems. Euro Tech Holdings Co Ltd (NASDAQ:CLWT) soared by as much as 90% before retreating to 32% gains for the day. The company provides instruments for measuring and controlling water and waste water processes. None of the funds followed by Insider Monkey reported owning a stake in Euro Tech Holdings Co Ltd (NASDAQ:CLWT) in their latest 13F filings.

Fiat Chrysler on the Rebound

Fiat Chrysler Automobiles NV (NYSE:FCAU)‘s stock is rallying again, having put a halt to the recent sell-off of its shares. The stock came under pressure after the company’s sales number for June were worse-than-expected. Earlier this week, analysts at Barclays downgraded the stock to ‘Underweight’ from ‘Overweight’ and decreased their price target on it to EUR 5.50 ($6.06) per share, pushing the stock even lower. Today, however, Fiat Chrysler Automobiles NV (NYSE:FCAU) shares have opened 5.2% higher and have continued to trend higher during the first hours of trading.

At the end of the first quarter, 28 of the funds in our database had Fiat Chrysler Automobiles NV (NYSE:FCAU) in their portfolios, unchanged during the quarter. Harris Associates, managed by Natixis Global Asset Management, held 34.2 million Fiat shares, down by 22% from the end of 2015.

Genworth Financial Rallying Higher

Shares of Genworth Financial Inc (NYSE:GNW) are also trending higher today, marking a potential turning point for the stock. Having fallen by more than 40% since the beginning of May, shares have jumped this morning and are currently trading at $2.56 per unit, up by roughly 5% from yesterday’s closing price. Shares are still down by 31% this year however.

A provider of mortgage and life insurance services, Genworth Financial Inc (NYSE:GNW) was losing support in the first quarter among the funds tracked by Insider Monkey. According to our data, 22 top hedge funds were holding the stock at the end of the first quarter, down from 28 registered at the end of December. Together these funds had ownership of roughly 8.5% of the company’s common stock. Christopher Pucillo‘s Solus Alternative Asset Management held the largest position among the funds we follow, amounting to 15 million shares, up by 58% over the course of the first quarter.

Disclosure: None