Why Are These Hot Stocks Trending on Friday?

LyondellBasell Industries NV (NYSE:LYB) is up 2.6% in pre-market trading after reporting third quarter earnings of $2.80 per share on revenues of $8.33 billion, beating earnings expectations by $0.23 per share but missing revenue estimates by $720 million. EBITDA was $2 billion, while income from continuing operations was $1.2 billion. The company repurchased 15.5 million shares, or around 3.3% of the float.  Management thinks the fourth quarter will reflect ‘a more balanced global ethylene industry’, meaning margins will be slightly better. Management believes industry demand for 2016 will be stable. With a forward P/E of 9.15 and dividend yield of 3.3%, shares are attractive for long term investors.

According to our data, hedge funds were bullish on LyondellBasell Industries NV (NYSE:LYB) in the second quarter. A total of 61 funds reported stakes worth $4.98 billion (representing 10.20% of the float) in the latest round of 13F filings, up from 57 funds and $3.73 billion a quarter earlier. Andreas Halvorsen‘s Viking Global owned 10.73 million shares at the end of June.

Whirlpool Corporation (NYSE:WHR) is trending after the company reported third quarter earnings of $3.45 per share on revenues of $5.28 billion, beating profit estimates by $0.16 per share but missing revenue expectations by $130 million. Revenue missed the estimates because of the strong dollar and weak Latin American sales, while earnings came in higher than expected because management is doing a good job at controlling costs. Gross margin increased by 0.5 percentage points to 17.6% year-over-year, while fiscal year 2015 guidance is for adjusted EPS between $12 – $12.50 and for free cash flow of $600 – $700 million. Whirlpool shares are down 16% year-to-date, but trade at a reasonable forward P/E of 10.64.

Hedge funds were mixed on Whirlpool Corporation (NYSE:WHR) in the time period from March 31 to June 30. Although the number of funds increased to 37 from 36, the total value of their holdings in the stock declined to $1.66 billion (accounting for 12.20%% of the float) from $1.78 billion. Edgar Wachenheim‘s Greenhaven Associates is one of the investors bullish on Whirlpool, holding 2.60 million shares as of the end of September.

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