A day after all three indexes fell by 2% or more, the market is taking a breather, as the Dow, S&P 500, and NASDAQ futures are all in the green this morning. Among the stocks trending today are JPMorgan Chase & Co. (NYSE:JPM), Best Buy Co Inc (NYSE:BBY), Ambarella Inc (NASDAQ:AMBA), GoPro Inc (NASDAQ:GPRO), and Yelp Inc (NYSE:YELP), not all of which are likewise trending in a positive direction. Let’s take a closer look at the action on each of these stocks and analyze relevant hedge fund sentiment towards them.
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JPMorgan Chase & Co. (NYSE:JPM) continues to show why it’s the best bank on the market today after the company reported solid fourth-quarter earnings, sending shares up by over 2% in pre-market trading, though they’re now trading up by just 0.30%. For the quarter, JPMorgan’s earnings exceeded estimates by $0.07 per share and its revenue beat expectations by $810 million, with a bottom-line of $1.32 per share and top-line of $23.7 billion. The bank’s tangible book value per share moved up by 8% year-over-year to $48.13 while its adjusted overhead ratio came in at a very respectable 57%. Moreover, JPMorgan returned $2.6 billion of capital to shareholders in the quarter, including $1 billion in net repurchases. CEO Jamie Dimon commented:
“We had a good quarter as 2015 came to a close. The businesses generated strong loan growth and credit quality, except for some stress in energy. The consumer business continues to gather deposits, outpacing the industry. Markets were somewhat quieter, and we saw the impact reflected in the results of our trading and Asset Management businesses. Looking at performance for the full year, 2015 was another record year for the Firm for net income and EPS, and importantly we exceeded on all of our commitments – balance sheet optimization, capital, GSIB and expense. On operating leverage, we delivered core efficiencies while continuing to invest in innovation and technology, infrastructure and talent – crucial for protecting the company and customers, and for our growth.”
Hedge fund sentiment around JPMorgan Chase & Co. (NYSE:JPM) has been stable, with the number of elite funds long the stock unchanged quarter-over-quarter during the third quarter at 100. Those 100 funds owned 3.4% of JPMorgan’s float as of September 30.
Best Buy Co Inc (NYSE:BBY) shares are in the red this morning after the retailer reported that its comparable-store sales dropped by 1.2% year-over-year and its domestic sales inched lower by 0.8% over the holiday season, mainly because of softer-than-expected mobile phone sales. Due to its slow holiday period, Best Buy management has revised its fourth-quarter guidance to show a revenue decline of 1.5% and a non-GAAP operating income rate decline of 10-to-15 basis points versus the company’s previous expectation of flat revenue and a 20-to-35 basis point operating income rate drop. Because the U.S economy is strong and prices at the pump are low, investors were evidently expecting better results. Best Buy Co Inc (NYSE:BBY) shares are down by over 9% on the news.
On the next page we examine why GoPro Inc and Yelp Inc are also making big moves in the wrong direction this morning.