12 Best Stocks To Buy For Flat Markets According To Druckenmiller

Published on December 23, 2022 at 2:04 pm by Hamna Asim in Hedge Funds, News

In this article, we discuss the 12 best stocks to buy for flat markets according to Stanley Druckenmiller. If you want to see more stocks in this selection, click 5 Best Stocks To Buy For Flat Markets According To Druckenmiller.

Stanley Druckenmiller of Duquesne Capital is one of the most well-known Wall Street money managers. On September 13, 2022, in an interview with Alex Karp, the chief executive officer of software firm Palantir, Druckenmiller highlighted investment options in the artificial intelligence sector and the market concerns about an impending recession. Druckenmiller credited the unpredictability in the equity market to the Russia-Ukraine war, the aftermath of the COVID-19 pandemic, and the Federal Reserve’s tightening fiscal policy. He further explained:

“There’s a high probability in my mind that the market, at best, is going to be kind of flat for 10 years, sort of like this ’66 to ’82 time period.”

Stanley Druckenmiller noted that the current market conditions are similar to those during 1966 and 1982. The billionaire also touched upon US-China relations, and said that the cold war which had been brewing in the last years might be turning into an active war. He also said that the relations between the two superpowers were at their best when President Trump was in power.

Stanley Druckenmiller’s Duquesne Capital manages a portfolio worth $1.76 billion as of the third quarter of 2022. In the three months through September, Druckenmiller scaled back its stake in Microsoft Corporation (NASDAQ:MSFT), Moderna, Inc. (NASDAQ:MRNA), and Antero Resources Corporation (NYSE:AR), while dumping Booking Holdings Inc. (NASDAQ:BKNG), Global-e Online Ltd. (NASDAQ:GLBE), and Phillips 66 (NYSE:PSX) completely.

Some of the top stocks that Druckenmiller held in his portfolio to navigate flat markets include Eli Lilly and Company (NYSE:LLY), T-Mobile US, Inc. (NASDAQ:TMUS), and Amazon.com, Inc. (NASDAQ:AMZN).

Our Methodology

We selected the top 12 stocks from Stanley Druckenmiller’s Duquesne Capital portfolio as of the end of the third quarter of 2022 for this analysis. The stocks are arranged according to the hedge fund’s stake value in each holding. Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022 was used to assess the hedge fund sentiment around the securities.

Best Stocks To Buy For Flat Markets According To Druckenmiller

12. Sea Limited (NYSE:SE)

Duquesne Capital’s Stake Value: $30,252,000

Number of Hedge Fund Holders: 55

Sea Limited (NYSE:SE) was incorporated in 2009 and is headquartered in Singapore. The company engages in the digital entertainment, e-commerce, and digital financial service businesses in Latin America, Asia, and internationally. On November 15, Sea Limited (NYSE:SE) stock rose nearly 40% as the company reported third-quarter results that outperformed Wall Street expectations. Stanley Druckenmiller added Sea Limited (NYSE:SE) to his Q3 2022 portfolio by purchasing 539,740 shares worth $30.25 million.

On November 21, Cowen analyst John Blackledge downgraded Sea Limited (NYSE:SE) to Market Perform from Outperform with a price target of $60, down from $72. The analyst cited the lack of visibility in both commerce and gaming for the downgrade. The increase in consumer mobility and difficult demand environment create an “unclear” path to profitability for Sea Limited (NYSE:SE), the analyst told investors in a research note.

According to Insider Monkey’s data, 55 hedge funds were long Sea Limited (NYSE:SE) at the end of September 2022, 65 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 9.5 million shares worth $535.5 million.

Like Eli Lilly and Company (NYSE:LLY), T-Mobile US, Inc. (NASDAQ:TMUS), and Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE) is one of the top stocks to buy for flat markets according to Druckenmiller.

Here is what Hayden Capital has to say about Sea Limited (NYSE:SE) in its Q3 2022 investor letter:

“Sea Limited (NYSE:SE) reported earnings last week, after which the share price rebounded +36% in a single day. The most obvious question that comes to mind is why didn’t we sell more last year, when prices were still high? The truth is that we did sell a significant amount, but in hindsight obviously wish we were more aggressive with the sales.

For example, we owned the peak number of shares of Sea Ltd in Q1 2020, and steadily trimmed over the next two years. From Q1 2020 to Q1 2022, we trimmed ~39% of our shares over that period. However, the issue was that the investment continued to grow as a percentage of the overall portfolio, since the share price appreciated much faster than our sales (+620% from 1Q20 to 3Q21). This was a similar case for our other long-tenured positions as well.

So why didn’t we trim more aggressively and just hold cash? The answer is that at its core, I believe that holding cash is implicitly a market timing call. I certainly didn’t foresee a likely recession on the horizon so quickly after the turbulence of Covid already had on the economy. Even in late 2021, after it was clear interest rates would start rising, we were still operating under the assumption that rates would cause valuations to compress, but likely wouldn’t have an impact on the overall earnings trajectory. Given our expectations for strong earnings growth, we thought this could more than offset the valuation compression over time, and would still generate strong IRRs over a 3 – 5 year timeframe…” (Click here to see the full text)

11. Workday, Inc. (NASDAQ:WDAY)

Duquesne Capital’s Stake Value: $36,674,000

Number of Hedge Fund Holders: 92

Workday, Inc. (NASDAQ:WDAY) is a California-based company that provides enterprise cloud applications in the United States and internationally. The company’s applications allow its customers to plan, execute, analyze, and extend to other applications and environments and manage their business operations. Druckenmiller, in the third quarter of 2022, raised his Workday, Inc. (NASDAQ:WDAY) stake by 193%. He owned 240,925 shares of the company worth $36.6 million.

On December 20, Jefferies analyst Brent Thill raised the price target on Workday, Inc. (NASDAQ:WDAY) to $235 from $225 and maintained a Buy rating on the shares. The analyst said that the appointment of Carl Eschenbach as co-CEO is a “very strong” addition to the leadership team and can also “open additional doors” for Workday, Inc. (NASDAQ:WDAY).

According to Insider Monkey’s third quarter database, 92 hedge funds were bullish on Workday, Inc. (NASDAQ:WDAY), compared to 71 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is the biggest position holder in the company, with 5 million shares worth $764 million.

Here is what RiverPark Large Growth Fund has to say about Workday, Inc. (NYSE:WDAY) in its Q3 2022 investor letter:

“We also added a small position in Workday this quarter, taking advantage of its 2022 price decline. WDAY is a leading SaaS software solutions provider with two key subparts: Workday HCM offering end-to-end software for human resource departments, and Workday Financial Management for planning, spending, auditing, analytics, and reporting. The company sells to more than 9,500 medium-sized through enterprise customers across more than 175 countries, including more than 50% of the Fortune 500.

The company is benefitting from the secular shift to digitization for businesses and despite its 21% annual subscription revenue CAGR over the past 2 years (with 95%+ gross revenue retention), Workday still has less than 5% penetration of its $105 billion TAM. We believe the company can grow its top-line high-teens over the long-term, while continuing to improve margins (non-GAAP gross operating margin expanded 900 basis points to 22.4% over the past two years), leading to approximately 30% EPS growth for the foreseeable future. The company also requires limited capital expenditures, producing significant and growing FCF ($1.4b last year, up 37% year over year), which WDAY has used for acquisitions and debt repayment.”

10. Teck Resources Limited (NYSE:TECK)

Duquesne Capital’s Stake Value: $41,698,000

Number of Hedge Fund Holders: 47

Teck Resources Limited (NYSE:TECK) was founded in 1913 and is headquartered in Vancouver, Canada. The company engages in the exploration, acquisition, development, and production of natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, and Energy segments. On November 16, Teck Resources Limited (NYSE:TECK) declared a C$0.125 per share quarterly dividend, in line with previous. The dividend is payable on December 30, to shareholders of record on December 15.

Securities filings for the third quarter of 2022 reveal that Stanley Druckenmiller’s Duquesne Capital raised its stake in Teck Resources Limited (NYSE:TECK) by 30%, holding 1.3 million shares worth $41.7 million.

On December 1, investment advisory Stifel raised the firm’s price target on Teck Resources Limited (NYSE:TECK) to C$61 from C$58 and kept a Buy rating on the shares. Analyst Alex Terentiew issued the ratings update.

According to Insider Monkey’s data, 47 hedge funds were long Teck Resources Limited (NYSE:TECK) at the end of the third quarter of 2022, compared to 46 funds in the last quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the largest stakeholder of the company, with 12 million shares worth $366.70 million.

9. Vertiv Holdings Co (NYSE:VRT)

Duquesne Capital’s Stake Value: $47,881,000

Number of Hedge Fund Holders: 32

Vertiv Holdings Co (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. Vertiv Holdings Co (NYSE:VRT) is a new arrival in Druckenmiller’s Q3 portfolio, with the billionaire purchasing nearly 5 million shares worth $47.8 million.

On October 26, Vertiv Holdings Co (NYSE:VRT) reported a Q3 non-GAAP EPS of $0.23 and a revenue of $1.48 billion, topping market estimates by $0.02 and $10 million, respectively. The company expects Q4 sales of $1.64 billion to $1.7 billion versus a consensus of $1.69 billion and adjusted EPS of $0.29 to $0.35, compared to a consensus of $0.34.

On December 9, Citi analyst Andrew Kaplowitz raised the price target on Vertiv Holdings Co (NYSE:VRT) to $18 from $15 and maintained a Buy rating on the shares. The analyst said megatrends and “still emerging fiscal tailwinds” should help moderate potential downside for industrials in a slowing macro-economic environment.

According to Insider Monkey’s Q3 data, 32 hedge funds were long Vertiv Holdings Co (NYSE:VRT), compared to 34 funds in the prior quarter. Ricky Sandler’s Eminence Capital is the largest stakeholder of the company, with approximately 10 million shares worth $97 million.

Here is what Baron Small Cap Fund has to say about Vertiv Holdings Co (NYSE:VRT) in its Q2 2022 investor letter:

“Vertiv Holdings, LLC, a leading provider of critical infrastructure for data centers, fell in the quarter. The market became concerned that capital spending for data centers might be slowing along with the economy, which could be the case. If you recall, shares of Vertiv were very weak when the company reported first quarter costs were not properly passed through to their customers, so margins would fall well short of projections.

We believe that Vertiv is now ahead of the curve on this and will demonstrate robust earnings power in the back half of 2022 and into next year. We think it’s a very cheap stock, with strong management and board oversight, and remain hopeful that when the company reverts to form, the shares can appreciate significantly.”

8. Datadog, Inc. (NASDAQ:DDOG)

Duquesne Capital’s Stake Value: $70,063,000

Number of Hedge Fund Holders: 74

Datadog, Inc. (NASDAQ:DDOG) is a New York-based company that provides a monitoring and analytics platform for developers, information technology teams, and cloud business users in North America and internationally. Stanley Druckenmiller boosted his Datadog, Inc. (NASDAQ:DDOG) stake by 165% in Q3 2022, holding 789,175 shares worth $70 million.

On December 15, Wedbush analyst Taz Koujalgi initiated coverage of Datadog, Inc. (NASDAQ:DDOG) with an Outperform rating and a $101 price target. Datadog, Inc. (NASDAQ:DDOG) is a leader in observability with a growing portfolio and “long runway for growth,” the analyst told investors. The company has a “unique combination” of growth at scale and more than 20% free cash flow margins while maintaining a solid competitive position and is levered to the secular trends of cloud migration and digital transformation, noted the analyst.

According to Insider Monkey’s third quarter database, 74 hedge funds were long Datadog, Inc. (NASDAQ:DDOG), compared to 82 funds in the last quarter. Henry Ellenbogen’s Durable Capital Partners is a prominent stakeholder of the company, with 3.2 million shares worth $290 million.

Baron Funds made the following comment about Datadog, Inc. (NASDAQ:DDOG) in its Q3 2022 investor letter:

“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”

7. Lamb Weston Holdings, Inc. (NYSE:LW)

Duquesne Capital’s Stake Value: $73,263,000

Number of Hedge Fund Holders: 42

Lamb Weston Holdings, Inc. (NYSE:LW) was incorporated in 1950 and is headquartered in Eagle, Idaho. The company produces, distributes, and markets value-added frozen potato products worldwide. It operates through four segments – Global, Foodservice, Retail, and Other. Lamb Weston Holdings, Inc. (NYSE:LW) is a new addition in Stanley Druckenmiller’s third quarter portfolio, with the billionaire buying 946,800 shares worth $73.2 million.

On December 14, Lamb Weston Holdings, Inc. (NYSE:LW) declared a $0.28 per share quarterly dividend, a 14.3% increase from its prior dividend of $0.24. The dividend is payable on March 3, 2023 to shareholders of record on February 3.

BofA analyst Peter Galbo on October 6 raised the price target on Lamb Weston Holdings, Inc. (NYSE:LW) to $95 from $90 and kept a Buy rating on the shares after gross margins “well ahead” of estimates drove an adjusted EPS and EBITDA beat in its fiscal Q1. The analyst, who lifted his FY23-25 EPS estimates, contended that Lamb Weston Holdings, Inc. (NYSE:LW) deserves a premium to the packaged food index given it is positioned to approach pre-COVID levels with upside potential to improve demand trends and margins.

According to Insider Monkey’s third quarter database, 42 hedge funds were bullish on Lamb Weston Holdings, Inc. (NYSE:LW), up from 35 funds in the prior quarter. Ben Jacobs’ Anomaly Capital Management is the biggest position holder in the company, with 2.7 million shares worth $210.2 million.

Meridian Funds made the following comment about Lamb Weston Holdings, Inc. (NYSE:LW) in its Q3 2022 investor letter:

“A core hedged holding in the Fund, Lamb Weston Holdings, Inc. (NYSE:LW) benefited from its defensive profile as a leading producer of affordable food staples: French fries and other frozen potato products. In addition to maintaining a leading market share in an attractive consumer category, the scale of the company’s processing and distribution capabilities represents a wide competitive moat, it’s seeing favorable supply and demand dynamics, and it possesses a healthy balance sheet. The restaurant industry’s rebound also bolstered the company’s outlook.”

6. KBR, Inc. (NYSE:KBR)

Duquesne Capital’s Stake Value: $78,495,000

Number of Hedge Fund Holders: 41

KBR, Inc. (NYSE:KBR) is a Texas-based company that provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through Government Solutions and Sustainable Technology Solutions segments. Securities filings for Q3 2022 reveal that Stanley Druckenmiller’s Duquesne Capital raised its stake in KBR, Inc. (NYSE:KBR) by 40%, holding 1.8 million shares worth $78.5 million.

On December 5, KBR, Inc. (NYSE:KBR) announced that it has won an engineering services contract to design an advanced offshore energy storage project for CrossWind. CrossWind is a joint venture between Shell and Dutch utility company, Eneco.

Truist analyst Tobey Sommer on December 21 raised the price target on KBR, Inc. (NYSE:KBR) to $68 from $64 and maintained a Buy rating on the shares. The analyst is positive on the company’s successful defense of the critical HomeSafe contract. He also noted that the stock’s sum-of-the-parts valuation may lead shares higher given the company’s “attractive and lucrative growth” in the Sustainable Technology Solutions segment.

According to Insider Monkey’s third quarter database, 41 hedge funds were long KBR, Inc. (NYSE:KBR), and Lauren Taylor Wolfe’s Impactive Capital held the biggest position in the company, with 4.3 million shares worth $188 million.

In addition to Eli Lilly and Company (NYSE:LLY), T-Mobile US, Inc. (NASDAQ:TMUS), and Amazon.com, Inc. (NASDAQ:AMZN), KBR, Inc. (NYSE:KBR) is one of the best stocks to buy according to Stanley Druckenmiller.

Click to continue reading and see 5 Best Stocks To Buy For Flat Markets According To Druckenmiller.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on April 11, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

50-year Wall Street Insider Names #1 stock for AI “Tidal Wave”

Published on April 1, 2024 at by Insider Monkey Staff

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

So you can see why CNBC’s Jim Cramer has said he’s learned to never bet against Marc.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up