In this article, we will be looking at 5 Best Stocks to Buy According to Peter Lewis’ LFL Advisers. If you want to see our detailed analysis of Lewis’ history and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Peter Lewis’ LFL Advisers.
5. Bank of New York Mellon Corp. (NYSE:BK)
Lewis’ Stake Value: $ 20,050,000
Percentage of Peter Lewis’ 13F portfolio: 9.36%
Number of Hedge Fund Holders: 52
Bank of New York Mellon Corp (NYSE: BK) ranks 5th on Peter Lewis’ list of top stocks to invest in. It is a bank holding company that deals in the provision of financial services through its two segments: Investment Services, and Investment and Wealth Management.
On 16th September, research firm Citigroup maintained its ‘Buy’ rating, setting a price target at $60.
During Q2 2021, Bank of New York Mellon Corp (NYSE: BK) earned a revenue of $3.96 billion, exceeding forecasts by $98.43 million. It posted an EPS value of $1.13, beating estimates by a margin of $0.13.
4. Lamar Advertising Co. (NASDAQ:LAMR)
Lewis’ Stake Value: $ 27,689,000
Percentage of Peter Lewis’ 13F portfolio: 12.93%
Number of Hedge Fund Holders: 32
Lamar Advertising Co (NASDAQ: LAMR) ranks 4th on Peter Lewis’ list of top stocks to invest in. Headquartered in Baton Rouge, Los Angeles, the company provides advertising services throughout the United States, and was founded in 1902.
By the end of the second quarter of 2021, 32 hedge funds out of 873 in Insider Monkey’s database held stakes worth $387 million in Lamar Advertising Co. (NASDAQ: LAMR), compared to 35 hedge funds holding $427 million worth of positions in the company in the previous quarter.
3. Autoliv Inc. (NYSE:ALV)
Lewis’ Stake Value: $ 30,570,000
Percentage of Peter Lewis’ 13F portfolio: 14.27%
Number of Hedge Fund Holders: 23
Autoliv Inc (NYSE: ALV) ranks 3rd on Peter Lewis’ list of top stocks to invest in. An automotive safety systems innovator and manufacturer, Autoliv Inc (NYSE: ALV) is headquartered in Stockholm, Sweden.
As of Q2 2021, Peter Lewis’ LFL Advisers held 312,700 shares of the company worth $30.57 million in Autoliv Inc (NYSE: ALV), accounting for 14.27% of the fund’s holdings.
By the end of Q2 2021, 23 hedge funds out of 873 in Insider Monkey’s database held stakes worth $860 million in Autoliv Inc (NYSE: ALV), in contrast to 20 hedge funds owning stocks worth $813 million the previous quarter.
2. TE Connectivity Ltd. (NYSE:TEL)
Lewis’ Stake Value: $ 30,590,000
Percentage of Peter Lewis’ 13F portfolio: 14.28%
Number of Hedge Fund Holders: 39
TE Connectivity Ltd (NYSE: TEL) ranks 2nd on Peter Lewis’ list of top stocks to invest in. Dealing in the development and manufacture of connectivity and sensor solutions, the company operates through its three segments: Industrial Solutions, Transportation Solutions, and Communications Solutions.
Investment management firm ClearBridge Investments released its Q2 2021 investor letter, in which it mentioned TE Connectivity Ltd (NYSE: TEL). Here’s what it had to say:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included information technology (IT), where TE Connectivity performed well but trailed the sector in the first quarter after a strong 2020.”
1. CDW Corp (NASDAQ:CDW)
Lewis’ Stake Value: $ 47,755,000
Percentage of Peter Lewis’ 13F portfolio: 22.3%
Number of Hedge Fund Holders: 27
CDW Corp (NASDAQ: CDW) ranks 1st on Peter Lewis’ list of top stocks to invest in. The company is headquartered in Lincolnshire, Illinois, and provides information technology solutions to a range of entities through its three segments: Corporate, Small Business and Public.
As of the second quarter of 2021, Peter Lewis’ LFL Advisers hold 273,430 shares in CDW Corp (NASDAQ: CDW) worth $47.75 million, covering 22.3% of the fund’s total holdings.
On 29th September, analyst firm JP Morgan upgraded its outlook on CDW Corp (NASDAQ: CDW) to ‘Neutral’, setting a price target at $200.
In the second quarter of 2021, 27 hedge funds out of 873 tracked by Insider Monkey held stakes worth $1.76 billion in CDW Corp (NASDAQ: CDW).
Investment advisory firm Wedgewood Partners shared its insights on CDW Corp (NASDAQ: CDW) in its investor letter for Q2 2021. Here’s what they had to say:
“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below.
So, even in a negative year for total economic growth, IT spending in the U.S. came in better than the broad economy. The Company outperformed the industry and with improved profitability – which always be stills our hearts. Additionally, consulting the chart below, you can see that the gap between its growth and the industry’s growth continues to widen over time, and that spread continued to expand during the abnormal conditions in 2020 as well. All of this gives us even greater comfort in our initial thesis…” (Click here to see the full text)
You can also take a peek at the 10 Best Biotech Stocks To Buy For 2021 and 10 Most Profitable Cash-Only Businesses To Avoid Taxes.
