Apple, Caterpillar, Valeant, and More: Why These Five Stocks Are in the Spotlight

Crude futures are in the green today as traders look forward to today’s rig count release. If rig growth begins slowing or topping, sentiment could improve.

Among the stocks that traders are also watching include several major companies, Apple Inc. (NASDAQ:AAPL), Caterpillar Inc. (NYSE:CAT), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Boeing Co (NYSE:BA). In this article, let’s take a closer look at why each stock is trending and analyze what the smart money thinks of each stock.

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Apple Inc. (NASDAQ:AAPL) is doubling down on China, having pledged to open two R&D centers in Shanghai and Suzhou. That’s in addition to two previously announced R&D labs in Shenzhen and Beijing. Given that it’s a huge market and the economy there is still growing, staying in the government’s good graces is imperative. By opening two R&D centers in Shanghai and Suzhou, Apple is buying goodwill and making sure Chinese consumers keep buying Apple products. Warren Buffett’s Berkshire Hathaway is a major holder of Apple Inc. (NASDAQ:AAPL), having bought a massive stake over the last two quarters.

Caterpillar Inc. (NYSE:CAT) is doing its best to settle the uncertainty around it. The heavy equipment maker recently hired William Barr, a former U.S. Attorney General, to help sort out the IRS probe concerning the company’s export and import practices. Shares of the company have rallied strongly from their lows due to Trump infrastructure stimulus hopes, but have lately retraced due to the uncertainty. Of the 742 elite funds we track, 34 funds owned $1.6 billion of Caterpillar Inc. (NYSE:CAT) and accounted for 2.90% of the float on December 31, versus 32 funds and $1.46 billion respectively on September 30.

On the next page, we examine Valeant Pharmaceuticals Intl Inc, Chipotle Mexican Grill Inc, and Boeing Co.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is in the spotlight after SEC filings revealed that Jeffrey Ubben’s ValueAct Capital bought 3 million shares of Valeant at the $10.81-$10.88 range. The purchase gives ValueAct a 5.2% holding in the company, up from the amount ValueAct held in December of last year. Valeant could use the additional shareholder as prominent hedge funder Bill Ackman’s Pershing Square recently completely sold out of the company’s stock. 39 elite funds owned shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) at the end of the fourth quarter, down 19 funds from the previous quarter.

Chipotle Mexican Grill, Inc. (NYSE:CMG) shares are modestly higher after the company announced that four of its board members, Patrick Flynn, Darlene Friedman, John Charlesworth, and Stephen Gillett will no longer stand for re-election. Bill Ackman’s Pershing Square Capital has played a behind the scenes role in the company, winning two board seats to help the company win back customers who left due to Chipotle’s previous food safety concerns in past years. 36 top funds were long Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of the fourth quarter, down 5 funds from the previous quarter.

Last but not least, Boeing Co (NYSE:BA) is 0.7% in the green after the airplane giant won a $3.4 billion contract to supply the U.S. Army and one other customer with 268 Apache helicopters over five years. In addition, President Donald Trump recently nominated Boeing executive Patrick Shanahan to be the Deputy Defense Secretary. 40 elite funds were long Boeing Co (NYSE:BA) as of the most recent 13-F reporting period, up one from the previous quarter.

Disclosure:None