The S&P 500 and other indexes plunged on Wednesday afternoon dragged by a weaker dollar, as investors are shifting their attention to the Fed after concerns over a Brexit faded slightly.
Among the stocks trending today are Walt Disney Co (NYSE:DIS), United Continental Holdings Inc (NYSE:UAL), E I Du Pont De Nemours And Co (NYSE:DD), Priceline Group Inc (NASDAQ:PCLN), and Facebook Inc (NASDAQ:FB). Let’s analyze why each stock is in the spotlight and see what investors tracked by us think about them.
At Insider Monkey, we track around 730 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).
Walt Disney Takes On Chinese Infringers
Less than a week after it opened Shanghai Disneyland, Walt Disney Co (NYSE:DIS) is taking several Chinese firms to court over potential copyright infringement issues. According to Disney, three Chinese firms took several elements of Disney’s ‘Cars’ movie and incorporated them into their own film, ‘The Autobots’. The stakes for Disney are high. China’s box office is one of the largest and fastest growing markets in the world and Disney can’t afford for its movies to be infringed upon. Among the funds we track, 49 funds owned shares of Walt Disney Co (NYSE:DIS) at the end of the first quarter, down by two funds from the previous quarter.
United Continental Aims to Increase Profitability
United Continental Holdings Inc (NYSE:UAL) is in the spotlight after the airline said it will consider changing how it uses its eight hubs at large airports to increase profitability. United Continental shares have retreated by 21% year-to-date as rising crude prices and increased industry capacity weigh on bullish sentiment. If United can increase its efficiency, traders might away the stock with a higher forward multiple than its current 5.5 times next year earnings estimates. Overall, 61 investors in our database owned shares of United Continental Holdings Inc (NYSE:UAL) at the end of the first quarter.
On the next page, we examine E I Du Pont De Nemours And Co, Priceline Group, and Facebook.