4 Best Stocks to Buy According to Billionaire Nelson Peltz

This article discusses the top 4 stock picks of billionaire Nelson Peltz’s Trian Partners at the end of June 2022. To know more about Mr Peltz’s journey, his activist stakes, and recent changes Trian Partners made to its portfolio, please check out 8 Best Stocks to Buy According to Billionaire Nelson Peltz.

4. Sysco Corporation (NYSE:SYY)

Trian Partners’ Stake Value: $744,868,000

Percentage of Trian Partners’ 13F Portfolio: 16.37%

Number of Hedge Fund Holders: 32

Sysco Corporation (NYSE:SYY) has been one of the best-performing stock picks of Trian Partners in the last few years. Since the fund disclosed initiating a stake in the food services company in the second quarter of 2015, Sysco Corporation’s (NYSE:SYY) stock has more than doubled. The results are even more phenomenal if one includes the dividend returns from the company since then. Sysco Corporation (NYSE:SYY) currently pays an annual dividend of $1.96 per share, which translates into a forward annual dividend yield of close to 2.5% based on the stock’s last closing price.

Trian had initiated a stake in the company because of its “stable growth, scale relative to peers, well-established and trusted brand, and high cash flow generation.” In addition, Trian Partners’ Nelson Peltz and Josh Frank served on Sysco Corporation’s (NYSE:SYY) board for six years until August 2021. Three months before their resignations Sysco Corporation (NYSE:SYY) had announced its new multi-year strategic plan, with intentions to grow its sales 1.5 times faster than its peer group, funded by $750 million in gross cost savings the company hopes to realize by FY 2024.

For its fiscal year 2022 fourth quarter, the company reported non-GAAP EPS of $1.15 on revenue of $19 billion on August 9, beating analysts’ expectations by $0.04 and $710 million, respectively.