It’s a green day on Wall Street as all three indexes are higher. The Dow has jumped by 77 points, the S&P is 0.6% in the green, and the NASDAQ has surged by almost 1%, powered by several solid earnings reports in the tech sector.
In this article, we will examine why investors are buzzing about five companies, UnitedHealth Group Inc (NYSE:UNH), Kansas City Southern (NYSE:KSU), MGIC Investment Corp. (NYSE:MTG), MakeMyTrip Limited (NASDAQ:MMYT), and Abeona Therapeutics Inc (NASDAQ:ABEO). Moreover, we will also take a look at what the funds from our database think about the companies in question.
While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).
UnitedHealth Group Inc (NYSE:UNH) shares have surged by over 6% after the company reported third-quarter results that were ahead of the Street’s estimates. The insurer earned $2.17 per share on revenue of $46.29 billion, beating the consensus estimates by $0.09 and $200 million, respectively. The company’s sales grew by 11.6% on the year as premiums jumped by 13.7% y and products revenue inched up by 3.3%. In addition, UnitedHealth increased its full-year adjusted EPS outlook to $8 from the previous range of $7.80 to $7.95. John Lykouretzos‘ Hoplite Capital Management more than doubled its stake in the second quarter to over 465,000 shares in UnitedHealth Group Inc (NYSE:UNH).
Kansas City Southern (NYSE:KSU) is 1.8% in the red on the back of the railroad posting mixed results for its third quarter. In the three months, Kansas City Southern earned $1.12 per share on sales of $604.5 million, missing profit estimates by $0.10 per share and beating the top-line consensus estimate by $1.82 million. Revenue fell by 4.3% year-over-year due to a 4% drop in total carload volume and a 1% decline in revenue per carload/unit. Operating ratio for the period came in at 66.9%, compared with 65.2% a quarter earlier. Of the 749 funds we track, 35 funds amassed 9.70% of Kansas City Southern (NYSE:KSU)’s float on June 30.
On the next page, we will take a closer look at the earnings report of MGIC Investment Corp, and will examine why MakeMyTrip Limited, and Abeona Therapeutics are trending.