In this article, we shall discuss 5 of Ken Fisher’s best picks under $30. To read our detailed analysis of Fisher’s history, his investment philosophy, and hedge fund performance, go directly and see Ken Fisher’s Latest Portfolio: 10 Best Picks Under $30.
5. CSX Corp. (NYSE:CSX)
Fisher Investments’ Stake Value: $567.6M
Percentage of Fisher Investments’ 13F Portfolio: 0.4%
Number of Hedge Fund Holdings: 63
Share Price (As of September 15): $29.49
Headquartered in Jacksonville, Florida, CSX Corp. (NYSE:CSX) is an American holding company focused on rail transportation and real estate in North America, among other industries. As of September 15, the company is down by 20.47% year-to-date. In the second quarter of 2022, CSX Corp. (NYSE:CSX) posted an EPS of $0.5, beating estimates of $0.47 by $0.03. Furthermore, in Q2 2022, the company reported a total revenue of $3.82 billion.
Hedge fund sentiment around CSX Corp. (NYSE:CSX) declined significantly in Q2 2022, with 63 hedge funds having a collective stake of $5.1 billion. This was down from 72 hedge funds having a cumulative stake value of $6.3 billion in the first quarter of 2022.
Clearbridge Investments mentioned CSX Corporation (NYSE:CSX) in their Q4 2021 investor letter. This is what they had to say:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operators CSX (NYSE:CSX) was among the lead performers. CSX (NYSE:CSX) is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX (NYSE:CSX) is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX (NYSE:CSX) performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”
4. Toyota Motors Corp. (NYSE:TM)
Fisher Investments’ Stake Value: $817.6M
Percentage of Fisher Investments’ 13F Portfolio: 0.57%
Number of Hedge Fund Holdings: 12
Share Price (As of September 15): $14.12
Based in Aichi, Japan, Toyota Motors (NYSE:TM) is a Japanese multinational automotive manufacturer.
Investor interest around the stock has increased significantly, with 12 hedge funds long the stock in Q2 2022, up from 9 hedge funds in Q1 2022. As of the second quarter of 2022, Fisher Investments is the largest shareholder in the stock, owning more than 5.3 million shares in Toyota Motors (NYSE:TM).
This is what Baron Funds had to say about Toyota Motors (NYSE:TM) in their Q1 2022 investor letter, a copy of which can be obtained here:
“Toyota’s (NYSE:TM) “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplates disruptive change that will dramatically lower costs and improve quality.”
3. GlaxoSmithKline plc. (NYSE:GSK)
Fisher Investments’ Stake Value: $851.8M
Percentage of Fisher Investments’ 13F Portfolio: 0.6%
Number of Hedge Fund Holdings: 34
Share Price (As of September 15): $29.8
Headquartered in London, GlaxoSmithKline plc. (NYSE:GSK) is a British multinational pharmaceutical and biotechnology company. It is the tenth largest pharmaceutical company in the world by revenue of ranks at #294 on the 2022 Fortune Global 500.
On September 5, Credit Suisse analyst Johanna Walton upgraded GlaxoSmithKline plc. (NYSE:GSK) to Neutral from Underperform, conferring it with a price target of $1633.
2. Freeport-McMoRan Inc. (NYSE:FCX)
Fisher Investments’ Stake Value: $1.52B
Percentage of Fisher Investments’ 13F Portfolio: 1.07%
Number of Hedge Fund Holdings: 56
Share Price (As of September 15): $29.33
Based in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company, and is a major producer of molybdenum, copper and gold. It operates the world’s largest gold mine, the Grasberg mine in Papua, Indonesia. On August 15, RBC Capital analyst Sam Crittenden lowered the price target on Freeport-McMoRan Inc. (NYSE:FCX) to $35 from $46, maintaining a Sector Perform rating on the shares.
As of Q2 2022, Fisher Investments is the largest shareholder in the stock, owning more than 52 million shares worth at around $1.52 billion.
Here is what Carillon Tower Advisors had to say about Freeport-McMoRan Inc. (NYSE:FCX) in their Q1 2022 investor letter, a copy of which can be obtained here:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
1. Alibaba Group Holding Ltd. (NYSE:BABA)
Fisher Investments’ Stake Value: $1.65B
Percentage of Fisher Investments’ 13F Portfolio: 1.16%
Number of Hedge Fund Holdings: 106
Share Price (As of September 15): $11.01
Based in Hangzhou, Zhejiang, Alibaba Group (NYSE:BABA) is a Chinese multinational technology company which specializes in e-commerce, retail, IoT, and technology. The company also provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services
Investor interest around Alibaba Group (NYSE:BABA) has skyrocketed in the second quarter of 2022, with 106 hedge funds long the stock, as compared to 100 in the preceding quarter. As of Q2 2022, Fisher Investments in the largest shareholder in the company, with a total stake value of $1.65 billion.
Artisan Partners, an asset management firm, mentioned Alibaba Group (NYSE:BABA) in their Q2 2022 investor letter. This is what they had to say:
“Alibaba rose 4% during the quarter. We would love to say the share price performance was due to strong operational performance. Unfortunately, that was not the case. The most recent earnings results showed its core e-business still had not returned to growth, primarily due to the difficult retail environment caused by the government’s zero-COVID policy. Alibaba also appears to be losing market share due to its product mix tilted toward apparel and cosmetics, categories currently stalled in this environment. The share price performance this quarter was largely a function of exogenous items—specifically, government actions in the form of stimulus to support the economy and less regulations.
Despite the poor recent results, Alibaba remains a powerful economic engine. It is a global leader in e-commerce and cloud computing, both of which should grow nicely over time. Management has started taking actions to improve profitability, which has been burdened by significant investment in loss-making business ventures. The financial results should improve significantly when China’s economy starts to recover from COVID-19 outbreaks. The shares are incredibly cheap and have some of the highest upside potential in the portfolio. Even embedding significant losses from new ventures, we estimate they are trading at 11X-12X unlevered earnings. In our view, the shares could double, and they still would not be expensive.”
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