In this article, we will take a look at the 5 Best Dividend Stocks to Buy According to D. E. Shaw. For deeper discussion and analysis, read 10 Best Dividend Stocks to Buy According to D. E. Shaw.
David E. Shaw of D.E. Shaw
5. UnitedHealth Group Incorporated (NYSE:UNH)
D E Shaw’s Stake Value: $319,999,734
On June 8, Mizuho raised its price recommendation on UnitedHealth Group Incorporated (NYSE:UNH) to $460 from $440. It reiterated an Outperform rating on the shares. The firm said it believes the managed care sector is moving into a “more stable and predictable” policy environment. In a research note, the analyst stated that the size and frequency of policy-related surprises are likely to ease from the elevated levels seen over the past three years. That shift could allow investors to focus more on company fundamentals, pricing recovery, and the sector’s underlying earnings power. Mizuho also increased price targets across the managed care sector to reflect what it sees as a more stable regulatory and legislative backdrop.
On June 4, Morgan Stanley analyst Erin Wright raised the firm’s price target on UNH to $453 from $395 while maintaining an Overweight rating on the stock. The analyst noted that managed care stocks have been “grinding higher” amid early signs of softer utilization trends. Wright also examined the potential benefits of artificial intelligence for managed care organizations, saying AI could create tailwinds across both revenue and cost areas. As those efficiencies scale, the firm estimates they could generate about 45% average EPS upside.
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare and well-being company. Its business segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which consists of UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, and UnitedHealthcare Community & State.
4. The Sherwin-Williams Company (NYSE:SHW)
D E Shaw’s Stake Value: $476,523,860
On June 8, Berenberg analyst Aron Ceccarelli lowered the firm’s price recommendation on The Sherwin-Williams Company (NYSE:SHW) to $380 from $400. He reiterated a Buy rating on the stock following meetings with management.
Earlier, on June 4, BMO Capital reduced its price goal on SHW to $355 from $420. It maintained an Outperform rating. The firm lowered its estimates to reflect a more challenging macroeconomic environment. According to the analyst, elevated raw material costs continue to pressure the business, while a weaker housing market is limiting the prospects for a recovery in late FY26 and FY27.
The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, distributes, and sells paint, coatings, and related products to professional, industrial, commercial, and retail customers. Its operations are primarily concentrated in North and South America, with additional business activities across the Caribbean, Europe, Asia, and Australia.
3. Cheniere Energy, Inc. (NYSE:LNG)
D E Shaw’s Stake Value: $505,904,354
On June 5, Raymond James added Cheniere Energy, Inc. (NYSE:LNG) to its list of current favorite stock ideas and removed Energy Transfer LP. The firm said Cheniere Energy offers a compelling story for both the near and long term and noted that the stock has recently been trading at levels it considers too attractive to overlook.
Earlier, on May 13, Scotiabank raised its price recommendation on LNG to $290 from $288. It reiterated an Outperform rating on the shares. In a research note, the analyst said the liquefied natural gas sector is among the most immediately affected areas within the broader energy infrastructure space. The firm added, however, that it remains positive on the sector. According to the analyst, conflict in the Middle East and the resulting supply disruptions are expected to create net benefits for US LNG producers, even after the situation is resolved.
Cheniere Energy, Inc. (NYSE:LNG) is a producer and exporter of liquefied natural gas (LNG) in the United States. The company supplies clean and secure LNG to integrated energy companies, utilities, and energy trading firms around the world.
2. Eli Lilly and Company (NYSE:LLY)
D E Shaw’s Stake Value: $586,244,842
On June 9, Jefferies raised its price recommendation on Eli Lilly and Company (NYSE:LLY) to $1,350 from $1,330. It reiterated a Buy rating on the shares. The move followed the release of full data from retatrutide’s TRIUMPH-1 obesity study and the TRANSCEND-T2D-1 study in patients with Type 2 diabetes mellitus. While the firm noted some safety observations, it believes these issues are manageable. Jefferies also argued that retatrutide’s overall profile “will be difficult to beat” in a modern large-scale global obesity Phase 3 trial.
On June 8, Reuters reported that Eli Lilly shares gained 4% on Monday after the company released new data on its next-generation obesity drug, retatrutide. Analysts and investors expect the treatment to help strengthen Lilly’s position in the growing weight-loss market.
Lilly presented full results from two retatrutide studies at the American Diabetes Association meeting in New Orleans. One study involved treatment-naive Type 2 diabetes patients, while the other focused on patients with obesity. Investors were particularly encouraged by the performance of the lower 4 mg dose of retatrutide. The treatment delivered roughly 19% weight loss, a result comparable to the highest dose of Lilly’s blockbuster obesity drug, Zepbound.
Tolerability was broadly consistent with expectations, including similar rates of treatment discontinuation and relatively low levels of vomiting. Side effects increased at higher doses.
Eli Lilly and Company (NYSE:LLY) is a medicine company that discovers, develops, manufactures, and markets products through a single business segment focused on human pharmaceutical products.
1. Texas Instruments Incorporated (NASDAQ:TXN)
D E Shaw’s Stake Value: $833,322,071
On June 9, Wells Fargo raised its price recommendation on Texas Instruments Incorporated (NASDAQ:TXN) to $300 from $260. It reiterated an Equal Weight rating on the shares. The firm believes the emergence of physical AI is creating a potentially meaningful long-term opportunity for analog and mixed-signal semiconductor companies. According to Wells Fargo, humanoid robots could become an important source of additional demand, with the firm estimating a semiconductor market opportunity of $1.6B by 2030.
Earlier, on May 26, BofA increased its price goal on TXN to $370 from $320. It kept a Buy rating on the stock. The firm said Texas Instruments’ multi-year content gains still appear to be underappreciated by investors. It also noted that the company’s core industrial and automotive markets “have finally turned the corner,” shifting from headwinds to cyclical tailwinds. In a research note, the analyst said these tailwinds are being further supported by “transformative” growth in AI-related data demand.
Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors. The company operates through two business segments: Analog and Embedded Processing.
While we acknowledge the potential of TXN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TXN and that has 100x upside potential, check out our report about the cheapest AI stock.
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