In this article, we discuss the 5 best epicenter stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Epicenter Stocks To Buy Now.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) operates as an integrated oil and gas firm. Chevron Corporation (NYSE:CVX) has weathered the Omicron storm better than other epicenter stocks because of the higher prices of oil and favorable supply-demand balances. The United States Department of Energy recently released a short-term energy outlook and detailed that in the first quarter of 2022, new production highs in the US would lead to a surplus market. The global oil consumption is expected to increase in 2022 as well.
Hedge funds have been piling into Chevron Corporation (NYSE:CVX) stock in acknowledgment of a bullish analysis of the energy sector. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX), up from 50 in the preceding quarter worth $4.2 billion.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 58
Tigress Financial analyst Ivan Feinseth recently raised the price target on Starbucks Corporation (NASDAQ:SBUX) stock to $136 from $130 and kept a Buy rating, underlining that consumer mobility and spending would continue to accelerate in 2022. The analyst also highlighted new labor investment initiatives of Starbucks Corporation (NASDAQ:SBUX) that were expected to drive “long-term shareholder value”. Starbucks Corporation (NASDAQ:SBUX) operates as a specialty coffee retailer.
Starbucks Corporation (NASDAQ:SBUX) has featured among the favorite hedge fund stocks for years. Among the funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX) with 10.7 million shares worth more than $1.1 billion.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:
“For Starbucks, we believe the underlying businesses for the company remain strong. Starbucks has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”
3. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 58
Piper Sandler analyst Nicole Miller Regan recently upgraded McDonald’s Corporation (NYSE:MCD) stock to Overweight from Neutral and raised the price target to $282 from $232, highlighting that McDonald’s Corporation (NYSE:MCD) was “uniquely positioned” to leverage industry-leading fast food experiences, size, and scale to contend with cost pressures and operational challenges facing the restaurant industry in the US. The analyst also lauded the commitment of McDonald’s Corporation (NYSE:MCD) towards share repurchases.
Hedge funds also back McDonald’s Corporation (NYSE:MCD) to deliver strong shareholder value in the coming months. At the end of the third quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in McDonald’s Corporation (NYSE:MCD), compared to 66 the preceding quarter worth $2.7 billion.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Exxon Mobil Corporation (NYSE:XOM) is an oil and gas firm based in Texas. The stock has returned close to 50% to shareholders in the past twelve months. Exxon Mobil Corporation (NYSE: XOM) recently started the sale process for some shale properties in Ohio valued at $200 million, per Reuters. Exxon Mobil Corporation (NYSE: XOM) is expected to use the funds from the sale of the assets to focus on the development of new properties in Brazil and the Permian Basin in Texas.
Exxon Mobil Corporation (NYSE: XOM) is also slowly incorporating ESG into the company policy and many environmental activists now see the firm in a positive light. Hedge funds have lauded the efforts of Exxon Mobil Corporation (NYSE: XOM) in this regard too. At the end of the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Exxon Mobil Corporation (NYSE:XOM).
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
Morgan Stanley analyst Benjamin Swinburne has an Overweight rating on The Walt Disney Company (NYSE:DIS) stock with a price target of $185. In a recent investor note, the analyst underlined that The Walt Disney Company (NYSE:DIS) would increase investment in streaming in 2022 and the shares were suffering from a “crisis of confidence” despite predictions that the Disney Plus platform, the streaming service of the firm, would add nearly 25 million in core subscribers over the next few months.
The Walt Disney Company (NYSE:DIS) is one of the stocks that hedge funds nearly always seem to hold in high regard. At the end of the third quarter of 2021, 101 hedge funds in the database of Insider Monkey held stakes worth $9.4 billion in The Walt Disney Company (NYSE:DIS).
In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, was ready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
