Stocks On The Rise: 5 Best To Buy Now

In this article, we will discuss 5 best stocks that are on the rise. If you want to explore similar stocks, you can also read Stocks On The Rise: 12 Best To Buy Now.

5. Lockheed Martin Corporation (NYSE:LMT)

Year-to-Date Return as of November 4: 35.93%

Number of Hedge Fund Holders: 55

Lockheed Martin Corporation (NYSE:LMT) is a top-tier aerospace and defense contractor with an impressive history of delivering shareholder value. On October 18, Lockheed Martin Corporation (NYSE:LMT) announced earnings for the third quarter of fiscal 2022. The company reported earnings per share of $6.87 and beat estimates by $0.16. The company generated a revenue of $15.58 billion for the quarter.

As of November 4, Lockheed Martin Corporation (NYSE:LMT) is offering a forward dividend yield of 2.49% and has free cash flows of $8.55 billion. Lockheed Martin Corporation (NYSE:LMT) is among the stocks that are on the rise and has returned 35.93% to investors so far in 2022, as of November 4.

On October 19, Baird analyst Peter Arment upgraded Lockheed Martin Corporation (NYSE:LMT) to Outperform from Neutral and reiterated his price target of $513.

At the end of Q2 2022, Lockheed Martin Corporation (NYSE:LMT) was a part of 55 hedge fund portfolios. These funds held stakes of $2.56 billion in the company, up from $2.44 billion in the preceding quarter with 56 positions.

As of June 30, GQG Partners is the largest investor in Lockheed Martin Corporation (NYSE:LMT) and has a position worth $877.8 million in the company.

Here is what Vltava Fund had to say about Lockheed Martin Corporation (NYSE:LMT) in its third-quarter 2022 investor letter:

“LMT is one of the world’s largest aerospace and defence companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defence industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT.

LMT has a strong and long-term sustainable competitive advantage ensuing from the fact that its products are developed and manufactured at an extremely high level of technology and complexity, its development and contract cycles are measured in decades, and the costs for the government to switch to alternative suppliers are high. Moreover, part of the production is classified as secret, which further takes the wind out of the sails of potential competitors. This results in a very high return on capital and admittedly a slowly but steadily growing business.

In most NATO countries, which are LMT’s customers, defence outlays are based upon the size of GDP. This is currently growing very fast in nominal terms due to inflation in most countries. A number of countries have also announced significant increases in defence budgets, whether it be Germany, which aims to get to the NATO-agreed 2% of GDP, or Poland, which wants to spend more than twice as much on defence…” (Click here to see the full text)

4. Pioneer Natural Resources Company (NYSE:PXD)

Year-to-Date Return as of November 4: 36.48%

Number of Hedge Fund Holders: 56

Pioneer Natural Resources Company (NYSE:PXD) is an American oil and gas exploration and production company. The company has a proven track record of delivering strong financial results and shareholder value. Pioneer Natural Resources Company (NYSE:PXD) is trading at an attractive valuation and is presenting an optimal buying opportunity for investors. As of November 4, the stock is trading at a PE multiple of 9x and is offering a forward dividend yield of 9.97%. The stock has gained 36.48% year to date, as of November 4, and is expected to continue this uptrend. Pioneer Natural Resources Company (NYSE:PXD) is ranked among the stocks that are on the rise.

On October 31, Truist analyst Neal Dingmann raised his price target on Pioneer Natural Resources Company (NYSE:PXD) to $261 from $219 and reiterated a Hold rating on the shares. This October, Jefferies analyst Lloyd Byrne took coverage of Pioneer Natural Resources Company (NYSE:PXD) with a Hold rating and a $261 price target.

At the close of Q2 2022, 56 hedge funds held stakes in Pioneer Natural Resources Company (NYSE:PXD). The total value of these stakes amounted to $696 million. As of June 30, Abrams Bison Investments is the top shareholder in Pioneer Natural Resources Company (NYSE:PXD) and has stakes worth $133.4 million in the company.

3. Cigna Corporation (NYSE:CI)

Year-to-Date Return as of November 4: 37.54%

Number of Hedge Fund Holders: 66

Cigna Corporation (NYSE:CI) is a leading American health services company that offers a broad range of health insurance and related products and services, including medical, dental, behavioral health, pharmacy, vision, and other health services. The company has a diversified customer base, which includes individuals, families, and businesses of all sizes. The company has a strong brand and reputation, as well as a long history of financial stability and profitability.

Cigna Corporation (NYSE:CI) has a strong cash position which has allowed it to make strategic investments in research and development and maintain its top position. Cigna Corporation (NYSE:CI) has free cash flows of $8.4 billion and is offering shareholders a forward dividend yield of 1.39%, as of November 4. The stock is ranked among the stocks to buy now that are on the rise, and as of November 4, has gone up by 37.5% year to date.

On November 4, Oppenheimer analyst Michael Wiederhorn raised his price target on Cigna Corporation (NYSE:CI) to $360 from $320 and reiterated an Outperform rating on the shares.

At the end of Q2 2022, 66 hedge funds held stakes in Cigna Corporation (NYSE:CI). The total value of these stakes amounted to $3.19 billion, up from $2.69 billion in the previous quarter with 63 positions. The hedge fund sentiment for the stock is positive.

As of June 30, Glenview Capital is the top shareholder in Cigna Corporation (NYSE:CI) and has disclosed a stake worth $547 million in the company.

Here is what Aristotle Capital Management, LLC had to say about Cigna Corporation (NYSE:CI) in its second-quarter 2022 investor letter:

“Cigna Corporation (NYSE:CI) contributed to performance in the second quarter, outpacing the benchmark Health Care sector return. We believe Cigna benefited from investors seeking relative “safety” in the managed care sector and the stock’s attractive valuation at just over 10 times next year’s earnings. During the quarter, Cigna reported an earnings beat due to a better-than-expected medical loss ratio.”

2. Chesapeake Energy Corporation (NYSE:CHK)

Year-to-Date Return as of November 4: 51.57%

Number of Hedge Fund Holders: 67

Chesapeake Energy Corporation (NYSE:CHK) operates as an independent oil and gas exploration company in the United States. The company is well-positioned to benefit from the secular growth trends in the LNG space and is expected to capture further market share. As of November 4, Chesapeake Energy Corporation (NYSE:CHK) has gone up by 51.57% since the beginning of the year and is expected to appreciate further. Chesapeake Energy Corporation (NYSE:CHK) is ranked among the stocks to buy now that are on the rise.

On October 19, Jefferies analyst Lloyd Byrne took coverage of Chesapeake Energy Corporation (NYSE:CHK) with a Buy rating and a $150 price target.

Chesapeake Energy Corporation (NYSE:CHK) is profitable and efficient at making profits for shareholders. The company has a trailing twelve-month operating margin of 20.65% and an ROE of 59.46%. The company is also paying a hefty dividend to investors and, as of November 4, is offering a forward dividend yield of 9.24%.

At the end of Q2 2022, 67 hedge funds were long Chesapeake Energy Corporation (NYSE:CHK) and disclosed stakes worth $3.52 billion in the company. This is compared to 59 positions in the preceding quarter with stakes worth $3.51 billion. The hedge fund sentiment for the stock is positive.

As of June 30, Oaktree Capital Management is the top investor in Chesapeake Energy Corporation (NYSE:CHK) and has a stake of $851.6 million in the company.

Here is what Miller Value Partners had to say about Chesapeake Energy Corporation (NASDAQ:CHK) in its third-quarter 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK) gained 19.1%² in the period. The company reported 2Q22 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense (EBITDAX) of $1,269MM, +195.8% Y/Y, ahead of consensus of $1,226MM, and Adjusted Earnings per Share (EPS) of $4.87, compared to 2Q21 EPS of $1.64, ahead of analyst expectations for EPS of $3.82. Chesapeake generated adjusted free cash flow (FCF) of $494MM, bringing TTM FCF to $1,663MM, or a FCF yield of 14.4%. Management also raised the company’s base dividend by 10% to $2.20/share, bringing the total quarterly dividend to $2.32/share, or an annualized yield of ~9.7%. Additionally, the company doubled its existing share repurchase authorization from $1B to $2B and has executed $670MM in repurchases so far through 7/31/22. Collectively, management is guiding for $1.2B in total FY22 dividends, at the midpoint, and $1B in share buybacks, implying total FY22 shareholder returns of $2.2B, or ~19.1% of the company’s market cap.”

1. Eli Lilly and Company (NYSE:LLY)

Year-to-Date Return as of November 4: 31.53%

Number of Hedge Fund Holders: 70

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that develops and markets innovative pharmaceutical solutions for humans and animals. Eli Lilly and Company (NYSE:LLY) has a strong track record of innovation and commercial success. The company is well-capitalized and has a strong balance sheet and a history of disciplined capital allocation. The company’s strong financial position has allowed it to invest in research and development, which is the key to its future success. Eli Lilly and Company (NYSE:LLY) is among the stocks that are on the rise and has gained 31.5% so far in 2022, as of November 4.

Eli Lilly and Company (NYSE:LLY) has free cash flows of $5.33 billion. The company is also efficient at making profits for investors and has an ROE of 66.5%. On November 2, Barclays analyst Carter Gould raised his price target on Eli Lilly and Company (NYSE:LLY) to $395 from $355 and maintained an Overweight rating on the shares.

On November 1, Eli Lilly and Company (NYSE:LLY) reported market-beating earnings for the fiscal third quarter of 2022. The company reported an EPS of $1.98 and beat estimates by $0.04. Eli Lilly and Company (NYSE:LLY) generated a revenue of $6.94 billion for the quarter and outperformed consensus by $36.68 million.

At the end of Q2 2022, Eli Lilly and Company (NYSE:LLY) was a part of 70 hedge fund portfolios. These funds disclosed stakes of $6.71 billion in the company, up from $5.07 billion in the previous quarter with 53 positions. The hedge fund sentiment for the stock is positive.

As of June 30, Fisher Asset Management is the most prominent shareholder in Eli Lilly and Company (NYSE:LLY) and has a position worth $1.92 billion in the company.

Here is what Baron Funds had to say about Eli Lilly and Company (NYSE:LLY) in its third-quarter 2022 investor letter:

“In pharmaceuticals, our largest investment is in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is off to a strong start. In addition, Mounjaro may be approved for obesity next year. In clinical trials, Mounjaro delivered up to 22.5% average weight loss in adults with obesity and has the potential to be a top-selling drug. Lilly also has a drug in development for Alzheimer’s disease in the same class as Lecanemab, a drug being developed by Biogen and Eisai that slowed the rate of cognitive decline in a late-stage clinical trial. Lilly is not facing any significant near-term patent expirations and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”

You can also take a look at 10 Biggest Irish Companies and 15 Best Strong Buy Stocks To Invest In.

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