Is WABCO Holdings Inc. (WBC) A Good Stock To Buy?

Since WABCO Holdings Inc. (NYSE:WBC) has witnessed a decline in interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedgies that slashed their entire stakes last quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management sold off the biggest position of the 700 funds monitored by Insider Monkey, worth an estimated $26.6 million in stock. Louis Bacon’s fund, Moore Global Investments, also dropped its stock, about $20.1 million worth of WBC shares. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to WABCO Holdings Inc. (NYSE:WBC). These stocks are Casey’s General Stores, Inc. (NASDAQ:CASY), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Highwoods Properties Inc (NYSE:HIW), and Zions Bancorporation (NASDAQ:ZION). This group of stocks’ market valuations match WBC’s market valuation.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $351 million. That figure was an impressive $1.44 billion in WBC’s case. Zions Bancorporation (NASDAQ:ZION) is the most popular stock in this table. On the other hand Highwoods Properties Inc (NYSE:HIW) is the least popular one with only 5 bullish hedge fund positions. WABCO Holdings Inc. (NYSE:WBC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ZION might be a better candidate to consider a long position.

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Disclosure: none.