3 Best Stocks to Buy According to Stephen Feinberg’s Cerberus Capital Management

2. Frontier Communications Parent, Inc. (NASDAQ:FYBR)

Cerberus Capital Management’s Stake Value: $607,586,000

Percentage of Cerberus Capital Management’s 13F Portfolio: 9.64%

Number of Hedge Fund Holders: 48

Frontier Communications Parent, Inc. (NASDAQ:FYBR), once a telecommunication giant, filed for bankruptcy in April 2020. The existing shareholders of the company at the time got wiped out. However, after emerging from bankruptcy, Frontier Communications Parent, Inc. (NASDAQ:FYBR) went public again in May last year, getting listed at $30 per share.

Cerberus Capital Management reported its stake in the company in its second quarter 2021 13F filing, which means the firm has been invested in the stock almost since Frontier Communications Parent, Inc. (NASDAQ:FYBR) went public again. Since reporting its stake then, Cerberus has increased its shareholding in the company a little in the next few quarters to around 22 million shares at the end of March 2022.

Analysts’ outlook for the company has remained mixed in the past few months. On July 7, Citi analyst, Michael Rollins, published a report in which he advised clients to do a pair trade by selling the stock of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) and buying the shares of Frontier Communications Parent, Inc. (NASDAQ:FYBR). Rollins thinks that Frontier has room to improve its operations going into 2023, which can lead its stock to outperform over the stock of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL). In addition, analysts at The Goldman Sachs Group reiterated their ‘Buy’ rating on Frontier Communications Parent, Inc.’s (NASDAQ:FYBR) stock but reduced their price target to $39 from $45 on July 12.