In this article, we will look at the 5 best hot stocks to buy right now. If you want to explore similar stocks, you can also read 11 Best Hot Stocks To Buy Right Now.
5. Unum Group (NYSE:UNM)
YTD Return as of October 17: 66%
Number of Hedge Fund Holders: 25
Unum Group (NYSE:UNM) is a leading American insurance company that provides various financial protection benefit solutions in the United States, the United Kingdom, and Poland. At the end of Q2 2022, 25 hedge funds held stakes in Unum Group (NYSE:UNM) worth $436 million. This is compared to 30 positions in the previous quarter with stakes worth $323.5 million.
This October, JPMorgan analyst Jimmy Bhullar raised his price target on Unum Group (NYSE:UNM) to $42 from $36 and maintained a Neutral rating on the shares. On October 7, Truist analyst Mark Hughes raised his price target on Unum Group (NYSE:UNM) to $48 from $44 and reiterated a Buy rating on the shares.
On October 14, Unum Group (NYSE:UNM) declared a quarterly cash dividend of $0.33 per share of the company’s common stock. The dividend is payable on November 18 to stockholders of record on October 28. Unum Group (NYSE:UNM) is up 66% for the year and is offering a forward dividend yield of 3.16%, as of October 14. Unum Group (NYSE:UNM) is one of the best momentum stocks to buy now.
As of June 30, Viking Global is the leading shareholder in Unum Group (NYSE:UNM) and has stakes worth $146.6 million in the company.
4. Sociedad Quimica y Minera (NYSE:SQM)
YTD Return as of October 17: 72%
Number of Hedge Fund Holders: 29
Sociedad Quimica y Minera (NYSE:SQM) is a leading Chilean chemical company and one of the world’s largest producers of lithium. Sociedad Quimica y Minera (NYSE:SQM) has pulled back in 2022 and now can be an optimal time to invest in the stock. As of October 17, the stock is trading at a PE multiple of 12x and is awarding stockholders with a dividend yield of 12.73%. The company has a trailing twelve-month operating margin of 48.4% and free cash flows of $1.35 billion. Sociedad Quimica y Minera (NYSE:SQM) is up 72% for the year, as of October 14, and is ranked high among the best momentum stocks to buy now.
This September, BMO Capital analyst Joel Jackson raised his price target on Sociedad Quimica y Minera (NYSE:SQM) to $130 from $125 and maintained an Outperform rating on the shares. On October 4, Deutsche Bank analyst Corinne Blanchard raised his price target on Sociedad Quimica y Minera (NYSE:SQM) to $128 from $125 and reiterated a Buy rating on the shares.
At the end of Q2 2022, 29 hedge funds were long Sociedad Quimica y Minera (NYSE:SQM) and held stakes worth $658.6 million in the company. This is compared to 28 positions in the previous quarter with stakes worth $493.2 million. The hedge fund sentiment for the stock is positive. As of June 30, Marshall Wace LLP is the largest shareholder in Sociedad Quimica y Minera (NYSE:SQM) and has stakes worth $147.7 million in the company.
3. Constellation Energy Corporation (NASDAQ:CEG)
YTD Return as of October 17: 103%
Number of Hedge Fund Holders: 43
Constellation Energy Corporation (NASDAQ:CEG) operates as a power generation and electricity utility company in the United States. Constellation Energy Corporation (NASDAQ:CEG) has gained 103% year to date and has a 3-month average trading volume of 2.37 million, as of October 14. Constellation Energy Corporation (NASDAQ:CEG) is one of the best momentum stocks to invest in.
Wall Street sees material upside to Constellation Energy Corporation (NASDAQ:CEG). This August, Morgan Stanley analyst Stephen Byrd raised his price target on Constellation Energy Corporation (NASDAQ:CEG) to $95 from $64 and reiterated an Overweight rating on the shares. On October 3, Credit Suisse analyst Nicholas Campanella took coverage of Constellation Energy Corporation (NASDAQ:CEG) with an Outperform rating and a $98 price target.
At the close of Q2 2022, Constellation Energy Corporation (NASDAQ:CEG) was a part of 43 investment portfolios. The collective stakes of these hedge funds amounted to $1.20 billion, up from $1.12 billion in the preceding quarter with 47 positions. As of June 30, Southpoint Capital Advisors is the top shareholder in Constellation Energy Corporation (NASDAQ:CEG) and has stakes worth $171.78 million in the company.
Here is what Heartland Advisors had to say about Constellation Energy Corporation (NASDAQ:CEG) in its third-quarter 2022 investor letter:
“Our best-performing holding in the quarter was Constellation Energy Corporation (NASDAQ:CEG) in the utilities sector. CEG is a great example of “deep value” holding with a self-help catalyst and is the leading provider of clean energy in the U.S., derived primarily from nuclear power. Earlier this year, the company was spun-off from a prior long-term utility holding. Post spin-off, we increased our position in CEG on the belief that the company was materially undervalued and catalysts were in place to change investors’ perception.
One of those catalysts was the August passage of the Inflation Reduction Act of 2022. Nuclear power has never benefitted from its zero-carbon emitting properties, like wind and solar. This legislation provides nuclear power plants with zero-carbon treatment, establishing a “floor” under power prices that could protect CEG from much of the potential downside swings in commodity power prices.”
2. Occidental Petroleum Corporation (NYSE:OXY)
YTD Return as of October 17: 120.70%
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY) is among the most profitable and cash-rich momentum stocks to buy now. The stock is also trading cheaply relative to earnings and is providing investors with an attractive buying opportunity. As of October 17, the stock has gained 120.70% year to date and is trading at a PE multiple of 6x. The company has a trailing twelve-month operating margin of 34% and free cash flows of $11.47 billion.
This September, Morgan Stanley analyst Devin McDermott raised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $76 from $70 and reiterated an Equal Weight rating on the shares. On September 12, Piper Sandler analyst Ryan Todd revised his price target on Occidental Petroleum Corporation (NYSE:OXY) to $92 from $93 and maintained an Overweight rating on the shares.
At the close of Q2 2022, 66 hedge funds were bullish on Occidental Petroleum Corporation (NYSE:OXY) and held stakes worth $13.75 billion in the company. This is compared to 67 hedge funds in Q1 2022 with stakes worth $12.61 billion. As of June 30, Berkshire Hathaway is the largest shareholder in Occidental Petroleum Corporation (NYSE:OXY) and has stakes worth $9.33 billion in the company.
Here is what Smead Capital Management had to say about Occidental Petroleum Corporation (NYSE:OXY) in its second-quarter 2022 investor letter:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
1. Peabody Energy Corporation (NYSE:BTU)
YTD Return as of October 17: 135.80%
Number of Hedge Fund Holders: 29
Peabody Energy Corporation (NYSE:BTU) is a leading coal mining company that has operations in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and international markets. The company has four divisions: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining. At the end of Q2 2022, 29 hedge funds disclosed ownership of stakes in Peabody Energy Corporation (NYSE:BTU). The total stakes of these hedge funds amounted to $867.3 million. As of June 30, Elliott Management is the top shareholder in Peabody Energy Corporation (NYSE:BTU) and has stakes worth $551.59 million in the company.
Peabody Energy Corporation (NYSE:BTU) is creating a lot of activity on Wall Street and as of October 17, the stock has surged 135.80% year to date and has a 3-month average trading volume of 5.5 million. The company has free cash flows of $301.7 million and has a trailing twelve-month operating margin of 17.20%. Peabody Energy Corporation (NYSE:BTU) is trading at attractive valuations and presenting investors an opportunity to rack up shares of the stock into weakness. As of October 17, the stock is trading at a PE multiple of 4x. Peabody Energy Corporation (NYSE:BTU) is one of the best momentum stocks to buy now.
On October 11, B. Riley analyst Lucas Pipes raised his price target on Peabody Energy Corporation (NYSE:BTU) to $31 from $28 and reiterated a Buy rating on the shares. Over the past three months, the stock has received 2 Buy ratings and 1 Hold rating from Wall Street analysts and has a consensus Buy rating. The stock’s average price target of roughly $29 implies an upside of 10.39% from current levels.
You can also take a look at 10 Best LNG Stocks To Buy and 10 Best Value Stocks To Buy.
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