The Dow Jones Industrial and S&P 500 hovered near their record highs on Monday as investors react to an overall upbeat earnings reports from companies and pare safe-haven assets as situation in Turkey after a failed coup attempt seems to stabilize. Among the most noteworthy stocks on the investors’ radar today include ZAIS Financial Corp (NYSE:ZFC), Burlington Stores Inc (NYSE:BURL), ParkerVision, Inc. (NASDAQ:PRKR), Brainstorm Cell Therapeutics Inc(NASDAQ:BCLI), and Digital Ally, Inc. (NASDAQ:DGLY). Let’s find out why these stocks are attracting attention today and analyze hedge funds sentiment towards them.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Investigation Initiated Against ZAIS Financial
ZAIS Financial Corp (NYSE:ZFC) is trading in the red today after law firm Andrews & Springer announced that it was investigating a potential securities violations and breach of fiduciary duty claims against ZAIS Financial Corp. The firm invited shareholders of the company to contact it in order to get additional information and “protect” their investment. Only five hedge funds out of those tracked by us were long ZAIS Financial Corp (NYSE:ZFC) at the end of the first quarter. Jim Simons’ Renaissance Technologies is one of these hedge funds.
Burlington Increases Its Q2 Guidance
Burlington Stores Inc (NYSE:BURL) stock has increased by 5% to its new 52-week high after the company upped its second quarter guidance. The apparel company now expects its second quarter comparable sales to increase by 4.2%-4.5%, up from the previous estimate of 2.5% -3.5% increase. Burlington Stores sees its net income at $0.28-$0.30, sharply up from the previous guidance of $0.20-$0.23. The company also said that it will reveal its full year guidance in its second quarter results, which are expected to be announced on September 6, according to FactSet. A total of 37 hedge funds from our database of about 766 funds were bullish on Burlington Stores Inc (NYSE:BURL) at the end of the first quarter.
Move on to the next page to see why ParkerVision, Brainstorm Cell Therapeutics and Digital Ally are making headlines today.