With the start of another trading week looming, traders are eagerly looking forward to the FOMC’s to-hike-or-not-to-hike interest rate decision on September 20-21.
In this article, we’ll examine five stocks that investors are eagerly watching this weekend, which are GoPro Inc (NASDAQ:GPRO), Pfizer Inc. (NYSE:PFE), TerraForm Power Inc (NASDAQ:TERP), Community Health Systems (NYSE:CYH), and Oracle Corporation (NYSE:ORCL) and use the latest 13F data to see how the smart money was positioned in each stock at the end of the second quarter.
Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 750 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).
Despite its recent relative strength and some upbeat analyst commentary around the stock, at least one Barron’s writer isn’t a big fan of GoPro Inc (NASDAQ:GPRO). According to the article, ‘Can GoPro Soar Again?‘, writer Alexander Eule writes that GoPro’s new drone product, the Karma, might not be able to make much of a positive impact on the stock due to its cost. Eule specifically writes:
“The GoPro Karma, as the drone will be called, will be able to track athletes from the air. In theory, it’s a great way for skiers and mountain bikers to automatically video themselves as they come down a mountain… But plenty of questions remain, including how many athletes will be able to afford the device.”
Hedge fund sentiment in the action camera maker was mostly stable in the second quarter.
Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 16 funds were long GoPro Inc (NASDAQ:GPRO) at the end of June, unchanged from the end of the previous quarter.
Pfizer Inc. (NYSE:PFE) is on many investors’ watchlists after the drug company announced positive top-line results from a Phase 3 trial of PF-06438179, which is a potential biosimilar to Janssen’s Remicade. In the trial, PF-06438179 demonstrated equivalent efficacy and met its primary endpoint. Remicade, which is prescribed for various inflammatory diseases, brought in about $6.56 billion in sales in 2015. The positive results reinforce the notion that Pfizer has a promising pipeline. Ken Fisher‘s Fisher Asset Management owned 31.7 million shares of Pfizer Inc. (NYSE:PFE) at the end of June, down by 1% from the end of March.
On the next page we’ll examine why TerraForm Power, Community Health Systems, and Oracle Corporation are in the headlines.