In this article, we discuss the top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners based on Q2 holdings of the fund. If you want to skip our detailed analysis of Perkins’ history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners.
Stephen Perkins is the founder and portfolio manager at Toronado Partners. He got his BA Economics degree from the University of California, Berkeley. Before establishing Toronado Partners, Stephen Perkins was General Partner at Crosslink Capital for ten years. Later he joined the CFA Society in San Francisco as a board member and President, where he served for seven years.
Toronado Partners is a San Francisco-based hedge fund founded in 2016. Toronado Partners creates long and short positions in rising leaders in various disruptive industries. In the second quarter of 2021, the total value of Toronado Partners’ 13F portfolio is $343.05 million, compared with $308.02 million in the previous quarter.
Stephen Perkins’ stock picks as of Q2 also include Zendesk, Inc. (NYSE: ZEN), Twilio Inc. (NYSE: TWLO), and GDS Holdings Limited (NASDAQ: GDS).
Based on the latest 13F holdings for the second of 2021, Toronado Partners owns 212,257 shares in Zendesk, Inc. (NYSE: ZEN), after cutting its holding in the company by 24% from the first quarter of 2021. Zendesk, Inc. (NYSE: ZEN) shares have returned 27.32% to investors over the course of the past 12 months.
Toronado Partners owns 56,557 shares in Twilio Inc. (NYSE: TWLO), worth $22.29 million, after reducing its holding by 6% from the first quarter of 2021. On July 29, Twilio Inc. (NYSE: TWLO) posted earnings for the second quarter of 2021. It reported earnings per share of -$0.11, surpassing the estimates by $0.02.
Stephen Perkins is also bullish on GDS Holdings Limited (NASDAQ: GDS), as his fund increased its holding in GDS Holdings Limited (NASDAQ: GDS) by 15% in the second quarter with 520,845 shares of the company, worth over $40.88 million. On August 17, GDS Holdings Limited (NASDAQ: GDS) posted earnings for the second quarter of 2021. It reported earnings per share of -$0.03, surpassing the estimates by $0.03. GDS Holdings Limited (NASDAQ: GDS) currently has an $11.72 billion market capitalization.
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Here is a list of Stephen Perkins’ stock picks in 2021. We used Perkins’ 13F portfolio for Q2 2021 for this analysis. We used Perkins’ 13F portfolio for the second quarter for this analysis.
Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners
10. Twilio Inc. (NYSE: TWLO)
Perkins’ Stake Value: $22,293,000
Percentage of Stephen Perkins’ 13F Portfolio: 6.49%
Number of Hedge Fund Holders: 98
Twilio Inc. (NYSE: TWLO), based in San Francisco, California, is a cloud communications platform as a service company. The company was founded in 2008, and it stands tenth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Shares of Twilio Inc. (NYSE: TWLO) rallied 57.27% in the past 12 months.
On July 30, Baird analyst William Power raised its price target on Twilio Inc. (NYSE: TWLO) to $450 from $430 and kept an “Outperform” rating on the shares. In the second quarter of 2021, Stephen Perkins’ Toronado Partners owned 56,557 shares in Twilio Inc. (NYSE: TWLO), worth $22.29 million. This represented 6.49% of the investment portfolio of Toronado Partners. Twilio Inc. (NYSE: TWLO) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 98 in the second quarter of 2021 compared to 99 positions in the previous quarter.
In addition to Zendesk, Inc. (NYSE: ZEN), and GDS Holdings Limited (NASDAQ: GDS), analysts are paying attention to Twilio Inc. (NYSE: TWLO) amid the company’s long-term growth potential.
Lakehouse Capital, in its second-quarter 2021 investor letter, mentioned Twilio Inc. (NYSE: TWLO). Here is what the fund said:
“The Fund held 20 positions as of the end of June and exited four during the year (including) Twilio. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”
9. LendingTree, Inc. (NASDAQ: TREE)
Perkins’ Stake Value: $25,505,000
Percentage of Stephen Perkins’ 13F Portfolio: 7.43%
Number of Hedge Fund Holders: 30
LendingTree, Inc. (NASDAQ: TREE) runs an online consumer platform in the United States through its subsidiary, LT Intermediate Company, LLC. It was incorporated in 1996 and ranks ninth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. LendingTree, Inc. (NASDAQ: TREE) currently has a market capitalization of $2.21 billion.
On July 29, LendingTree, Inc. (NASDAQ: TREE) announced earnings for the second quarter of 2021. It reported revenue of $270 million, up 46.5% YoY, beating the market expectations by $0.76 million. On July 19, Oppenheimer analyst Jed Kelly lowered its price target on LendingTree, Inc. (NASDAQ: TREE) to $275 from $325.
The hedge fund managed by Stephen Perkins owns 120,373 shares in LendingTree, Inc. (NASDAQ: TREE), worth over $25.51 million, representing 7.43% of their portfolio. The hedge fund has increased its stake in the firm by 7% in the second quarter of 2021. Hedge funds are loading up on LendingTree, Inc. (NASDAQ: TREE), as Insider Monkey’s data shows that 30 hedge funds held a stake in the company in the second quarter of 2021, compared to 25 funds in the first quarter of 2021.
In addition to Zendesk, Inc. (NYSE: ZEN), Twilio Inc. (NYSE: TWLO), and GDS Holdings Limited (NASDAQ: GDS), analysts are paying attention to LendingTree, Inc. (NASDAQ: TREE) amid the company’s long-term growth potential.
Polen Capital, in its first-quarter 2021 investor letter, mentioned LendingTree, Inc. (NASDAQ: TREE). Here is what the fund said:
“We also exited our position in LendingTree. LendingTree is a two-sided marketplace in the consumer financial services vertical that connects borrowers with lenders. The company has built a brand over more than 15 years that offers savings to borrowers by having banks compete. The company had been acquired by IAC before the financial crisis and then was spun out in the worst of the global financial crisis (GFC). The company had a resurgence following the GFC by adding value in the mortgage market. The company used the strong cash flow generation in the model to expand into adjacencies and diversify the revenue base. The product offering has expanded over the years mostly through acquisition and includes credit cards, personal loans, and insurance.…” (Click here to see the full text)
8. Zendesk, Inc. (NYSE: ZEN)
Perkins’ Stake Value: $30,636,000
Percentage of Stephen Perkins’ 13F Portfolio: 8.93%
Number of Hedge Fund Holders: 52
Zendesk, Inc. (NYSE: ZEN) is a software development firm. It was founded in 2007 and is placed eighth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Shares of Zendesk, Inc. (NYSE: ZEN) are up 27.32% in the past 12 months.
On July 30, Zendesk, Inc. (NYSE: ZEN) posted earnings for the second quarter of 2021. It reported earnings per share of $0.13, missing the estimates by $0.03. Revenue over the period was $318.22 million, missing the forecast by $2.33 million.
Toronado Partners holds 212,247 shares in Zendesk, Inc. (NYSE: ZEN), worth over $30.64 million, representing 8.93% of their portfolio. The hedge fund has trimmed its stake in Zendesk, Inc. (NYSE: ZEN) by 24% in the second quarter of 2021. Hedge fund sentiment increased for Zendesk, Inc. (NYSE: ZEN) in the second quarter of 2021. Insider Monkey’s data shows that 52 elite hedge funds held stakes in the company in the second quarter, up from 45 funds a quarter earlier.
In addition to Twilio Inc. (NYSE: TWLO) and GDS Holdings Limited (NASDAQ: GDS), analysts are paying attention to Zendesk, Inc. (NYSE: ZEN) amid the company’s long-term growth potential.
7. Stamps.com Inc. (NASDAQ: STMP)
Perkins’ Stake Value: $31,817,000
Percentage of Stephen Perkins’ 13F Portfolio: 9.27%
Number of Hedge Fund Holders: 27
Stamps.com Inc. (NASDAQ: STMP) offers Internet-based mailing and shipping services. It was incorporated in 1996 and stands seventh on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. Stamps.com Inc. (NASDAQ: STMP) shares have offered investors returns exceeding 48.83% over the course of the past 12 months.
On August 5, Stamps.com Inc. (NASDAQ: STMP) announced earnings for the second quarter of 2021. It posted revenue of $191.07 million, down 7.6% YoY, missing the estimates by $2.97 million. On July 12, Craig-Hallum analyst George Sutton downgraded Stamps.com Inc. (NASDAQ: STMP) to “Hold” from “Buy” with a price target of $330, down from $340. According to the analyst, the stock has suffered due to the company’s conservative guidance policies, which include no forecast for the entire year of 2021 and no long-term growth expectations.
Stamps.com Inc. (NASDAQ: STMP) is the latest addition in Stephen Perkins’ hedge fund portfolio, as Toronado Partners bought 158,853 shares of the company, worth $31.82 million. This represented 9.27% of the investment portfolio of Toronado Partners. There were 27 hedge funds in our database that held stakes in Stamps.com Inc. (NASDAQ: STMP) in the second quarter of 2021, compared to 32 funds in the previous quarter. Simcoe Capital Management is the company’s most significant stakeholder, with 742,482 shares worth $148.71 million.
In addition to Zendesk, Inc. (NYSE: ZEN), Twilio Inc. (NYSE: TWLO), and GDS Holdings Limited (NASDAQ: GDS), analysts are paying attention to Stamps.com Inc. (NASDAQ: STMP) amid the company’s long-term growth potential.
Alger, in its fourth-quarter 2020 investor letter, mentioned Stamps.com Inc. (NASDAQ: STMP). Here is what the fund said:
“Stamp.com Inc. provides internet-based mailing and shipping solutions to individuals, small businesses, e-commerce shippers, enterprises and high-volume shippers. Through its portfolio of branded solutions and more than 500 unique integrations with marketplaces, shopping carts, e-commerce tools and shipping software platforms. Stamps.com software allows its nearly one million members to print mailing and shipping labels for multiple carriers around the world. Stamps.com has a unique and defensible competitive position in the market as one of only a few U.S. Postal Service-approved third-party PC-based postage vendors, and we believe the company is well-positioned to benefit from the secular shift toward e-commerce, which has been accelerated by Covid-19.…” (Click here to see the full text)
6. BlackLine, Inc. (NASDAQ: BL)
Perkins’ Stake Value: $33,128,000
Percentage of Stephen Perkins’ 13F Portfolio: 9.65%
Number of Hedge Fund Holders: 20
BlackLine, Inc. (NASDAQ: BL) delivers cloud-based solutions to automate and streamline accounting and financial operations. It was founded in 2001 and is placed sixth on the list of top 10 stocks to buy today according to Stephen Perkins’ Toronado Partners. BlackLine, Inc. (NASDAQ: BL) shares have offered investors more than 44.71% in returns over the course of the past 12 months.
On August 5, BlackLine, Inc. (NASDAQ: BL) announced earnings for the second quarter of 2021. It reported earnings per share of $0.15, beating the estimates by $0.07. Revenue for the second quarter was $102.1 million, up 22.6% YoY, surpassing the forecast by $1.02 million.
Stephen Perkins’ Toronado Partners reduced its hold in BlackLine, Inc. (NASDAQ: BL) by 2% in the second quarter of 2021. The fund owns 297,724 shares of BlackLine, Inc. (NASDAQ: BL), worth $33.13 million. D E Shaw is BlackLine, Inc.’s (NASDAQ: BL) most significant stakeholder, with 613,836 shares worth $68.30 million.
In addition to Zendesk, Inc. (NYSE: ZEN), Twilio Inc. (NYSE: TWLO), and GDS Holdings Limited (NASDAQ: GDS), analysts are paying attention to BlackLine, Inc. (NASDAQ: BL) amid the company’s long-term growth potential.
Polen Capital, in its first-quarter 2021 investor letter, mentioned BlackLine, Inc. (NASDAQ: BL). Here is what the fund said:
“Blackline provides software that helps companies more accurately meet financial deadlines by automating accounting and reporting processes. Demand for their products trended upward, steadily and sustainably, during the latter half of 2020 as potential customers put more focus and investment dollars behind digital transformation. The company is seeing an increasing trend of large deals (new and expansion), progress in up-sells and crosssells with existing customers, and a large pipeline of transformational deals for 2021. We believe that the company’s willingness and ability to invest in new talent, product innovation, and automation have made its product offerings more attractive and well-positioned to take advantage of a global economic recovery.”
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Disclosure: None. Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners is originally published on Insider Monkey.
