Crude prices are lower in the pre-market after yesterday’s slightly deflating EIA report. Not only did distillates inventory rise, but domestic production also rose. Seeing as one report doesn’t equal a trend, the rally in crude prices could still continue. Among the stocks trending today are Anheuser Busch Inbev SA (ADR) (NYSE:BUD), Boeing Co (NYSE:BA), Verizon Communications Inc. (NYSE:VZ), FuelCell Energy Inc (NASDAQ:FCEL), and Alphabet Inc (NASDAQ:GOOG). Let’s find out why each stock is in the spotlight and analyze how the smart money is positioned in them.
Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).
Mega-Merger Nearing Final Stages
According to Bloomberg, Anheuser Busch Inbev SA (ADR) (NYSE:BUD)‘s merger with SABMiller Plc is closer to becoming a reality. Sources say that China’s commerce ministry has no major qualms about the merger, particularly after Anheuser-Busch agreed to divest the manufacturer of Snow beer to China Resources Beer. Once China’s government gives the deal the thumbs up, the last major hurdle will be U.S. Justice Department approval. South Africa will also need to give its blessing to the deal. Ken Fisher‘s Fisher Asset Management was one of the top shareholders of Anheuser Busch Inbev SA (ADR) (NYSE:BUD) at the end of March.
Boeing May Have a New Competitor
Boeing Co (NYSE:BA) is in the spotlight after Russia unveiled its new medium-range passenger plane, the MC-21, made by the Irkut Corporation. Russia says that the plane is superior to others on the market and will enter serial production in 2017. Although Russia has long been known for its aeronautical prowess, the country doesn’t have much market share outside of the country and faces stiff competition from established entrants. Cliff Asness‘ AQR Capital Management owned over 1.1 million shares of Boeing Co (NYSE:BA) at the end of the first quarter.
On the next page we examine why investors have their eyes on FuelCell Energy, Verizon, and Alphabet today.