Top 20 Most Popular Stocks Among Financial Advisors This Week

Due to the thousands of stocks that are trading on the markets, a retail investor can find it really difficult to pick the stocks worth his or her attention. In order to avoid screening through all of these stocks, one can narrow down their list to stocks that smart money is following. Researchers at TrackStar, which is the official newsletter of Intuition (a division of InvestingChannel), have compiled a list of 20 stocks that ranked as the most searched among financial advisors this week and in this article we will discuss the latest developments surrounding these companies in more detail.

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In addition, we will take a look at the smart money sentiment towards these 20 stocks. We follow over 700 hedge funds and other institutional investors, whose 13F filings we analyze in order to identify trading opportunities. Our database contains some of the best-performing hedge funds, which generate strong returns by investing in companies with strong fundamentals. Our research showed that following these funds into some of their long picks can help us beat the market over the long run (read more details about our small-cap strategy).

Let’s start with Wal-Mart Stores, Inc. (NYSE:WMT), which ranked on the last spot. On Tuesday, Wal-Mart reported its financial results for the third quarter of fiscal year 2016 (ended October 31), which included revenue of $117.41 billion and EPS of $1.03, down from the $119 billion and $1.15 in EPS, that it posted a year earlier. The company also posted comparable store sales of 1.5%, and slightly narrowed its full-year earnings guidance to a range of $4.50-to-$4.65 per share. Among the funds we track, Wal-Mart Stores, Inc. (NYSE:WMT) has 61 shareholders and they held around 3.40% of the company’s outstanding stock at the end of September. Warren Buffett’s Berkshire Hathaway inched down its stake in Wal-Mart Stores, Inc. (NYSE:WMT) by 4.20 million shares to 56.19 million shares during the third quarter.

Alphabet Inc (NASDAQ:GOOGL) also ranked among the most searched stocks, which is not surprising, since the tech giant is always in the spotlight. Alphabet Inc (NASDAQ:GOOGL)’s class A stock has surged by over 40% since the beginning of the year and at 21-times forward earnings it is a bit overvalued compared to the S&P 500’s average forward P/E of 15.60. However, the company is expected to grow significantly over the long-run, which is why it is one of the favorite stocks among smart money investors. According to our data, Alphabet Inc (NASDAQ:GOOGL)’s class A stock ranked on the third spot, with 129 funds holding long positions at the end of September, including billionaires Andreas Halvorsen of Viking Global, Ken Fisher of Fisher Asset Management, and Leon Cooperman of Omega Advisors.

Next in line is Visa Inc (NYSE:V), which reported its financial results for the fourth quarter and full fiscal year 2015 two weeks ago, missing the earnings estimates, but reporting better-than-expected revenue. The results as well as the acquisition of Visa Europe, which was announced on the same day, were appreciated by analysts, with most of them reiterating bullish ratings on the stock and several raising their price targets on it, including Piper Jaffray and Bank of America, which increased their price targets to $89 and $85, respectively. The funds from our database are also bullish on Visa Inc (NYSE:V), with 102 funds amassing 5.60% of the company’s outstanding stock at the end of the third quarter. Fisher Asset Management is the largest shareholder of Visa Inc (NYSE:V) among the funds we follow, amassing 14.63 million shares as of the end of September.

iShares Barclays 20+ Yr Treas. Bond (ETF) (NYSEARCA:TLT), which tracks the performance of the Barclays US 20+ Treasury Bond Index and invests 95% of its assets in U.S government bonds with a maturity of at least 20 years, is another interesting pick to follow the smart money into. The ETF is down by 3.88% since the beginning of the year amid uncertainty regarding an interest rate hike by the Fed by the end of 2015. Among the investors we follow, 26 funds held shares of iShares Barclays 20+ Yr Treas. Bond (ETF) (NYSEARCA:TLT) at the end of the third quarter.

JPMorgan Chase & Co. (NYSE:JPM) is another closely-watched financial company. With federal prosecutors still investigating the financial crisis and practices involving the trading of mortgage-based securities, large lenders like JPMorgan Chase & Co. (NYSE:JPM) have to endure high litigation costs. However, a strict control policy allows JPMorgan to return capital to shareholders. Earlier this year, JPMorgan raised its dividend to $0.44 from $0.40, and its stock currently sports a dividend yield of 2.61%. Among the funds from our database, 100 reported stakes in JPMorgan Chase & Co. (NYSE:JPM) in the just-ended round of 13F filings.

Crude lost some ground in the last week or so, with WTI sliding by around $4.00 as the International Energy Agency provided a bearish outlook for the next year. In 2016, the oil market will still be dominated by an oversupply of crude that lagging demand will be unable to match, according to the Agency. Exxon Mobil Corporation (NYSE:XOM)‘s stock has declined by around 5% over the last five days amid the news, extending its year-to-date drop to 13%. With low crude prices, oil companies have to embark on stricter cost-cutting campaigns in order to maintain their high-dividend policies and keep investors from fleeing. Nevertheless, collectively, hedge funds that we track are underweight Exxon Mobil Corporation (NYSE:XOM). A total of 61 funds held shares of the company at the end of September, amassing 1.0% of Exxon Mobil Corporation (NYSE:XOM)’s outstanding stock. Among them, Richard S. Pzena’s Pzena Investment Management and billionaire Donald Yacktman‘s Yacktman Asset Management held the top positions, holding stakes containing 6.11 million shares and 5.89 million shares, respectively.

Then there is Starbucks Corporation (NASDAQ:SBUX), whose stock has surged by over 50% since the beginning of the year, as the company has reported in-line earnings and strong revenue and same-store sales growth. The company provided weaker-than-expected guidance for the current quarter, with EPS in the range of $0.44-to-$0.45, below the consensus estimate of $0.47. At a forward P/E of 32.3, Starbucks Corporation (NASDAQ:SBUX)’s stock is overvalued, trading above the S&P 500’s mean of 15.6, which might be a reason for concern among some smart money investors. At the end of September, 54 funds from our database held shares of Starbucks Corporation (NASDAQ:SBUX) with an aggregate value of $1.72 billion. Among them, Clifford Fox’s Columbus Circle Investors reported a 3.76 million share-stake in its latest 13F filing.

With the latest developments in the pharmaceutical segment, it’s not surprising that Pfizer Inc. (NYSE:PFE) is also in the spotlight of financial advisors. Over the last couple of weeks, the Street has been watching Pfizer Inc. (NYSE:PFE) and Allergan PLC (NYSE:AGN) closely, as the companies announced that they were involved in merger discussions, raising some criticism and sparking talk regarding how such tax inversion transactions are impacting the U.S economy. Earlier today, Bloomberg reported that Pfizer and Allergan are close to reaching an agreement that could value the latter at as much as $380 per share. Allergan ranks as the most popular stock among the funds we track, but Pfizer Inc. (NYSE:PFE) seems to be catching up, as the number of funds with long positions in the company went up to 97 from 85 during the third quarter.

Bank of America Corp (NYSE:BAC) is another big lender that is under the microscope in relation to lawsuits related to mortgage-backed securities. A recent report issued by Moody’s and cited by several outlets, claims that Bank of America Corp (NYSE:BAC) endured larger litigation costs than other big banks, spending an estimated $70 billion since 2008. Nevertheless, amid an 8% drop of its stock in the third quarter, Bank of America Corp (NYSE:BAC) registered an increase in popularity among the funds from our database, with the number of investors in the lender jumping to 108 from 95.

As many investors and analysts have been saying, Netflix, Inc. (NASDAQ:NFLX) is a great stock to buy because of its focus on growth rather than short-term results. The stock has surged by 140% since the beginning of the year, helped by a seven-for-one stock split that made it more affordable to smaller investors. Netflix, Inc. (NASDAQ:NFLX) is one of the best companies in its industry, considered by many as a technology disruptor, which positions it well ahead of its competition. Smart money investors know this very well, as they are collectively bullish on the company. At the end of September, 57 funds from our database held nearly 15% of Netflix, Inc. (NASDAQ:NFLX)’s outstanding stock, including billionaire Chase Coleman’s Tiger Global Management, which reported a $1.86 billion position that contained almost 18 million shares as of the end of September.

Verizon Communications Inc. (NYSE:VZ) recently obtained a waiver from the Federal Communications Commission that makes the company exempt from the rules that require the accommodation of hearing and speech-impaired users under the voice-over-Wi-Fi technology. This suggests that Verizon Communications Inc. (NYSE:VZ) might soon join the list of other telecom giants that have launched Wi-Fi calling, such as AT&T Inc. (NYSE:T), T-Mobile US Inc (NYSE:TMUS), and Sprint Corp (NYSE:S). Verizon is one of two telecom holdings of Warren Buffett‘s Berkshire Hathaway, which owns 15.0 million shares of the company (AT&T is its second holding, acquired in the third quarter). However, the funds from our database are collectively underweight Verizon Communications Inc. (NYSE:VZ), with 59 funds reporting stakes equal to 1.40% of the company as of the end of the third quarter.

Walt Disney Co (NYSE:DIS)‘s stock has gained nearly 3% in the last five days after the company posted strong financial results, including for its Media division, which was considered to be underperforming lately. Walt Disney Co (NYSE:DIS) has also announced plans to launch a streaming service, which would allow it to benefit from its vast portfolio of brands, as more and more viewers are switching to online subscription-based streaming services from more traditional cable. The stock lost 10% in the third quarter, prompting investors to cut their exposure to the company. Among the funds from our database, 48 reported stakes in the company, down from 60 a quarter earlier. Billionaire Ken Fisher’s Fisher Asset Management is bullish on Walt Disney Co (NYSE:DIS), owning 8.51 million shares of the company.

Chevron Corporation (NYSE:CVX) is another energy stock in the spotlight. The company’s shares have tanked by over 19% year-to-date amid weak oil prices, but the company still pays a quarterly dividend of $1.07 per share, which gives its stock a yield of 4.72%. There are concerns that dividends paid by Chevron and other oil giants might not be sustainable in the long-run due to the current environment in the oil market, but analysts expect a reversal to the trend in the next couple of years. This is why hedge funds and other institutional investors are sticking to their positions in Chevron Corporation (NYSE:CVX), though in the third quarter, the number of funds with long stakes declined by five to 45, amid a 17% drop of the stock. D. E. Shaw and Fisher Asset Management are two of the funds that we follow with substantial holdings in Chevron Corporation (NYSE:CVX), reporting ownership of 3.86 million shares and 2.62 million shares, respectively.

Amid a decline in the PC market that has sent stocks like Micron over 50% in the red this year, Microsoft Corporation (NASDAQ:MSFT)‘s stock has gained 17% as the company has shifted its attention to cloud computing, mobile and software. Recently, Microsoft Corporation (NASDAQ:MSFT) announced a new partnership with HP Enterprise that involves developing cloud-based products for corporate customers. Microsoft Corporation (NASDAQ:MSFT) is also one of the hedge funds’ favorite stocks, with 113 investors from our database reporting long positions as of September 30.

Amazon.com, Inc. (NASDAQ:AMZN)‘s stock has surprised investors as it has more than doubled since the beginning of the year. Jeff Bezos’ focus on long-term gains is starting to bear fruit, as the company has become one of the largest in terms of market capitalization. In the third quarter, Amazon.com, Inc. (NASDAQ:AMZN) reported a profit of $0.17 per share, while the Street expected a loss of $0.10, with its Amazon Web Services segment playing a major role in turning the company to profitability. The growth has attracted more investors among the smart money, as according to our data, 113 funds held shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of September, versus 103 funds a quarter earlier.

Facebook Inc (NASDAQ:FB) is another high growth stock with gains north of 35% so far this year. Facebook is expected to increase its revenue by around 40% per year in 2016 and 2017 as the company has reported strong results from its mobile segment, as well as solid overall growth in daily and monthly average users. Among the funds we track, Facebook Inc (NASDAQ:FB) ranked as the second-most popular tech stock with 128 funds owning shares, including Leon Cooperman’s Omega Advisors, which increased its stake by 84% last quarter to 1.06 million shares. Last month, Omega said that it expects Facebook Inc (NASDAQ:FB) to deliver an 18% growth rate over the medium-term.

General Electric Company (NYSE:GE)‘s decision to focus on its core business and exit its financing unit, GE Capital, was applauded by investors, who have sent the stock 20% higher since the beginning of the year. In the process, the company has returned and will return more capital to shareholders, which is another reason to be bullish on the stock. At the moment, General Electric Company (NYSE:GE) is trading at around 20-times forward earnings and its stock sports a dividend yield of 3.02%. A total of 74 funds from our database held shares of General Electric Company (NYSE:GE) at the end of September, including billionaire Nelson Peltz’s Trian Fund Management, which added 40.94 million shares to its GE position, taking it to 90.57 million shares.

Colgate-Palmolive Company (NYSE:CL)‘s stock has edged down by 4% so far this year, as a stronger dollar and weakness in emerging markets is putting more pressure on the company’s sales. At a P/E of 24.4, Colgate-Palmolive’s stock is trading below the industry average and offers an attractive dividend yield of 2.29%. As a consumer defensive stock, Colgate-Palmolive Company (NYSE:CL) represents a good long-term holding. Billionaire Jim Simons’ quant fund Renaissance Technologies is one of the largest shareholders of Colgate-Palmolive Company (NYSE:CL), owning 11.44 million shares. However, just 31 funds from our database held shares of the company at the end of September, amassing 3.20% of its outstanding stock.

Finally, Gilead Sciences, Inc. (NASDAQ:GILD) is the most popular biotech stock. It has gained 13% since the beginning of the year. With the biotech industry being hot at the moment, a lot of stocks have surged and entered overvalued territory (the mean industry P/E stands at 35.5). Gilead Sciences, Inc. (NASDAQ:GILD) is an exception, as it is still trading at just 8.5-times forward earnings, even though the company has reported earnings above estimates for the past few quarters. Gilead Sciences, Inc. (NASDAQ:GILD) is the favorite biotech stock among the funds from our database as well, with 90 funds owning shares at the end of September, including D. E. Shaw and Cliff Asness’ AQR Capital Management, which hold 6.15 million shares and 4.77 million shares, respectively.

Apple Inc. (NASDAQ:AAPL) has always been surrounded by a lot of attention and it currently ranks as the most-searched stock among financial advisors. The company’s stock has recently taken a hit after a report by Credit Suisse cut its forecast on iPhone sales based on a decline in supply chain orders. Over the months there have been many reports that suggested weakening sales for Apple Inc. (NASDAQ:AAPL), but the company has managed to negate these concerns in its financial reports, so we’ll see if the same holds true in this case as well. Apple Inc. (NASDAQ:AAPL) ranked as the second-most popular stock among the investors we follow, even though there were 11 less of them at the end of the third quarter as there were at the start, at 133.

Disclosure: None