All three indexes are in the green today, thanks in part to solid results from several banks which reported their latest quarterly results this morning.
Among the stocks that are also trending are another bank which did not report results today, Goldman Sachs Group Inc (NYSE:GS), and four other companies, Tesla Motors Inc (NASDAQ:TSLA), SolarCity Corp (NASDAQ:SCTY), Whiting Petroleum Corp (NYSE:WLL), and Nike Inc (NYSE:NKE). Let’s take a closer look at why traders are focused on these stocks today and also analyze hedge fund sentiment towards them.
While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).
![Tesla Motors Inc (NASDAQ:TSLA), Car, Model S, Sign, Showroom, Brand, Logo, automotive, sales](https://imonkey-blog.imgix.net/blog/wp-content/uploads/2015/05/shutterstock_242058721-750x495.jpg?auto=fortmat&fit=clip&expires=1755993600&width=480&height=316)
Hadrian / Shutterstock.com
While it didn’t report earnings today, Goldman Sachs Group Inc (NYSE:GS) is nevertheless almost 2% in the green due to its peers’ strong results. Due to the earnings beats out of JPMorgan Chase & Co. (NYSE:JPM) and others, expectations for Goldman Sachs’ own results have increased, pushing its shares higher (though ironically enough, JPMorgan and Wells Fargo & Co (NYSE:WFC) own shares are down slightly today on their strong results). In addition, Goldman Sachs is trending on the account of the bank recently opening Marcus.com, an online lending platform where qualified borrowers can get loans of up to $30,000 for various uses. Although online lending isn’t exactly the most profitable business in the world, it could be a big future growth area going forward and could improve Goldman Sachs’ image among the general public. Warren Buffett’s Berkshire Hathaway owned 10.96 million shares of Goldman Sachs Group Inc (NYSE:GS) at the end of June.
Follow Goldman Sachs Group Inc (NYSE:GS)
Follow Goldman Sachs Group Inc (NYSE:GS)
Tesla Motors Inc (NASDAQ:TSLA) is trending after Germany’s Federal Motor Authority sent a letter to Tesla owners warning them that the company’s ‘Autopilot’ function is just an assistance system and that drivers should pay attention to the road at all times. The warning letter is just the latest piece of non-positive news concerning Tesla’s ‘Autopilot’ function, which many have criticized for coming to market too early.
Follow Tesla Inc. (NASDAQ:TSLA)
Follow Tesla Inc. (NASDAQ:TSLA)
In addition, Tesla and SolarCity Corp (NASDAQ:SCTY) are in the spotlight due to a recent Oppenheimer comment that the two may need $12.5 billion for capital expenditures through 2018 through a combination of tax equity, system refinancing, corporate debt, asset-based debt, and other means. Despite the large capex requirement, Oppenheimer analyst Colin Rusch thinks that the probability of shareholders approving the Tesla/SolarCity merger on November 17 has increased. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 36 were long Tesla Motors Inc (NASDAQ:TSLA) on June 30, while 26 were shareholders of SolarCity Corp (NASDAQ:SCTY).
Follow Solarcity Corp (NASDAQ:SCTY)
Follow Solarcity Corp (NASDAQ:SCTY)
On the next page, we’ll see why traders have been buzzing about Whiting Petroleum Corp and Nike Inc.
Whiting Petroleum Corp (NYSE:WLL) is in the red today after Bloomberg reported that oil production in North Dakota fell below 1 million barrels/day for the month of August, the lowest total in over two years. Given that Whiting is a big producer in the Bakken region, the company’s growth production might not have increased very much for that duration. Whether the lower production trend will continue given the rise in WTI in September and October is another question, however. As WTI prices trend higher, many producers will hedge and have more risk-free production capability. 41 funds in our system were bullish on Whiting Petroleum Corp (NYSE:WLL) at the end of the second quarter, down by two quarter-over-quarter.
Follow Whiting Petroleum Corp (NYSE:WLL)
Follow Whiting Petroleum Corp (NYSE:WLL)
Last but not least, Nike Inc (NYSE:NKE) is capturing some attention today after the apparel maker announced an agreement to outfit English Premier League club Chelsea, in what the team called its “largest commercial deal in the club’s history.” According to some reports, Nike will purportedly sponsor Chelsea for around $70 million annually. 57 funds that we track were long Nike Inc (NYSE:NKE) at the end of June, a drop of seven funds from the end of March.
Follow Nike Inc. (NYSE:NKE)
Follow Nike Inc. (NYSE:NKE)
Disclosure: None