Ken Fisher Strategy: 5 New Stock Picks

In this article, we discuss the 5 new stock picks of Ken Fisher. If you want to see more stocks in this selection, check out Ken Fisher Strategy: 10 New Stock Picks.

5. Haleon plc (NYSE:HLN)

Number of Hedge Fund Holders: N/A

Fisher Asset Management’s Stake Value: $117,475,000

Haleon plc (NYSE:HLN) was incorporated in 2021 and is headquartered in Brentford, the United Kingdom. The company is focused on the research and development, manufacture, and sale of consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Haleon plc (NYSE:HLN) is one of the new stock picks of Ken Fisher as of Q3 2022, with the billionaire purchasing 19.2 million shares worth about $117.5 million. 

On November 11, Barclays analyst Iain Simpson maintained an Equal Weight rating on Haleon plc (NYSE:HLN) but lowered the price target on the shares to 298 GBp from 347 GBp. 

4. Johnson Controls International plc (NYSE:JCI)

Number of Hedge Fund Holders: 33

Fisher Asset Management’s Stake Value: $247,482,000

Johnson Controls International plc (NYSE:JCI) engages in engineering, manufacturing, commissioning, and retrofitting building products and systems worldwide. The company operates through four segments – Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. Ken Fisher added Johnson Controls International plc (NYSE:JCI) to his Q3 portfolio by purchasing over 5 million shares worth $247.4 million, representing 0.18% of the total 13F securities. 

On November 3, Johnson Controls International plc (NYSE:JCI) reported a Q3 non-GAAP EPS of $0.99, beating market estimates by $0.01. The company initiated fiscal 2023 adjusted EPS guidance of $3.20 to $3.60, an increase of 7% to 20% year-over-year versus a consensus of $3.

Citi analyst Andrew Kaplowitz raised the price target on Johnson Controls International plc (NYSE:JCI) on November 4 to $64 from $54 and kept a Neutral rating on the shares. The company’s in-line fiscal 2022 results and “encouraging” fiscal 2023 outlook indicate robust demand trends across Johnson Controls International plc (NYSE:JCI)’s end markets, the analyst wrote in a research note.

According to Insider Monkey’s data, 33 hedge funds were long Johnson Controls International plc (NYSE:JCI) at the end of the second quarter of 2022, compared to 44 funds in the prior quarter. 

Here is what Aristotle Capital Management Value Equity has to say about Johnson Controls International plc (NYSE:JCI) in its Q1 2022 investor letter:

“As investors since the fourth quarter of 2017, we have enjoyed a front-row view of the large transformation that has taken place at Johnson Controls. Once a multi-industrial corporation, the company successfully turned itself into a pure-play buildings solutions and technology provider. Catalysts we previously identified for Johnson Controls included synergies following its merger with Tyco International, which provides fire safety and building security products, as well as benefits from its separation of non-building-focused businesses, such as automotive seating and batteries. With all catalysts in sight now nearing completion, and Johnson Controls now a better business for it – with higher recurring revenues and lower capital intensity – we decided to exit our investment to help fund the purchases of Xcel Energy and Atmos Energy.”

3. Volkswagen AG (OTC:VWAGY)

Number of Hedge Fund Holders: N/A

Fisher Asset Management’s Stake Value: $353,525,000

Volkswagen AG (OTC:VWAGY) is a German company that manufactures and commercializes automobiles in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments – Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. Ken Fisher opened a new position in Volkswagen AG (OTC:VWAGY) during the third quarter of 2022, buying 28.5 million shares worth $353.5 million and representing 0.26% of the total portfolio. 

On October 28, Volkswagen AG (OTC:VWAGY) reported a Q3 GAAP EPS of €3.90 and a revenue of €70.71 billion, up 24.2% on a year-over-year basis. The total vehicle sales during the quarter came in at 2,236,000 units. For full-year 2022, Volkswagen AG (OTC:VWAGY) expects the sales revenue to be 8%-13% higher than the prior-year figure.

BofA analyst Horst Schneider on November 8 upgraded Volkswagen AG (OTC:VWAGY) to Buy from Neutral. The analyst said the market is applying an “excessive” conglomerate discount to the shares.

2. GSK plc (NYSE:GSK)

Number of Hedge Fund Holders: 34

Fisher Asset Management’s Stake Value: $358,218,000

GSK plc (NYSE:GSK) is a UK-based company that focuses on the discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products. The company operates through four segments – Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare.

Securities filings for the third quarter of 2022 reveal that Fisher Asset Management added GSK plc (NYSE:GSK) to its portfolio by acquiring more than 12 million shares worth $358.2 million, representing 0.26% of the total securities. 

On November 11, UBS analyst Michael Leuchten downgraded GSK plc (NYSE:GSK) to Sell from Neutral with a price target of 1,300 GBp, down from 1,820 GBp. The analyst sees “uncertain times ahead still” as well as an “unattractive earnings scenario” after 2026. 

According to Insider Monkey’s data, 34 hedge funds were long GSK plc (NYSE:GSK) at the end of Q2 2022, compared to 33 funds in the prior quarter. Arrowstreet Capital held a prominent stake in the company, comprising approximately 10 million shares worth about $435 million. 

1. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 68

Fisher Asset Management’s Stake Value: $1,109,194,000

The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. In Q3 2022, Ken Fisher acquired a stake in The Charles Schwab Corporation (NYSE:SCHW) by purchasing 15.4 million shares worth $1.10 billion, representing 0.83% of the total securities. 

On October 26, The Charles Schwab Corporation (NYSE:SCHW) declared a quarterly dividend of $0.22 per share, in line with previous. The dividend is payable on November 25, to shareholders of record on November 11. 

Deutsche Bank analyst Brian Bedell on November 14 raised the price target on The Charles Schwab Corporation (NYSE:SCHW) to $101 from $100 and kept a Buy rating on the shares. The analyst updated estimates and price targets midway through Q4 for the brokers, asset managers, and exchanges. The sector has a “mostly upward bias” given the robust equity market rebound in Q4 so far, the analyst told investors in a research note. 

Among the hedge funds tracked by Insider Monkey, 68 funds reported owning stakes worth $4.5 billion in The Charles Schwab Corporation (NYSE:SCHW) at the end of Q2 2022, compared to 78 funds in the prior quarter worth $5.5 billion. Harris Associates held the biggest stake in the company, comprising 12.7 million shares valued at $804.6 million. 

LVS Advisory made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter:

“We purchased shares of The Charles Schwab Corporation (NYSE:SCHW) around the same time as Interactive Brokers. The investment thesis is similar. Schwab benefits from higher interest rates as it collects income earned from client cash. While IBKR mostly serves retail investors, Schwab has a greater emphasis on wealth advisors and corporate retirement plans. B2B channels are stickier than retail traders and give Schwab pricing power to collect a greater portion of the interest earned than IBKR. Schwab is a more mature business and has fewer reinvestment opportunities than IBKR (which is why I prefer IBKR on the margin); however, Schwab has authorized a massive $15 billion share buyback program (!) representing over 10% of the company’s market cap at the time of announcement. Given that Schwab trades for a mid-teens price-to-earnings multiple and has a low cost of capital, the share buyback should be highly accretive. The combined tailwind from higher interest rates and the buyback program will lead to attractive earnings per share growth over the coming years.”

You can also take a look at 11 Best Materials Dividend Stocks To Buy and Dividend Kings List By Yield. 

Follow Insider Monkey on Twitter