5 Best Stocks To Buy For Flat Markets According To Druckenmiller

In this article, we discuss the 5 best stocks to buy for flat markets according to Stanley Druckenmiller. If you want to see more stocks in this selection, click 12 Best Stocks To Buy For Flat Markets According To Druckenmiller. 

5. T-Mobile US, Inc. (NASDAQ:TMUS)

Duquesne Capital’s Stake Value: $96,471,000

Number of Hedge Fund Holders: 100

T-Mobile US, Inc. (NASDAQ:TMUS) was founded in 1994 and is headquartered in Bellevue, Washington. The company provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. Stanley Druckenmiller raised his position in T-Mobile US, Inc. (NASDAQ:TMUS) by 7% in Q3 2022, holding 719,017 shares worth $96.5 million. On December 12, T-Mobile US, Inc. (NASDAQ:TMUS) enhanced its network coverage and capacity alongside the deployment of a new layer of 5G spectrum nationwide. 

On November 15, Tigress Financial analyst Ivan Feinseth raised the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $202 from $195 and reiterated a Buy rating on the shares. The company’s accelerating ability to leverage its “massive 5G high-speed network will continue to drive increasing customer gains and revenue growth”, the analyst told investors. The analyst noted that T-Mobile US, Inc. (NASDAQ:TMUS)’s ongoing leadership position in 5G continues to support “industry-leading postpaid service revenue and cash flow growth.”

According to Insider Monkey’s Q3 data, T-Mobile US, Inc. (NASDAQ:TMUS) was part of 100 hedge fund portfolios, compared to 96 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 5.2 million shares worth $703.3 million. 

In its Q4 2021 investor letter, ClearBridge Investments shared its stance on T-Mobile US, Inc. (NASDAQ:TMUS):

“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”

4. Chevron Corporation (NYSE:CVX)

Duquesne Capital’s Stake Value: $99,175,000

Number of Hedge Fund Holders: 66

Chevron Corporation (NYSE:CVX) is one of Druckenmiller’s top stock picks to play the flat markets this year. The billionaire owns 690,295 shares of Chevron Corporation (NYSE:CVX) as per the 13F filings for the third quarter of 2022, worth over $99 million, representing 5.62% of the total portfolio. 

On December 7, Chevron Corporation (NYSE:CVX) announced a FY 2023 capital spending budget of $17 billion, at the top end of its $15 billion to $17 billion medium-term range and up more than 25% from expected spending in 2022. The budget also includes nearly $2 billion for projects that lower carbon emissions or raise renewable fuels production capacity.

Piper Sandler analyst Ryan Todd on December 19 maintained an Overweight rating on Chevron Corporation (NYSE:CVX) but lowered the price target on the shares to $199 from $206. “Even after two years of outperformance,” the analyst remains constructive on the energy complex into 2023. 

According to Insider Monkey’s third quarter database, 66 hedge funds were bullish on Chevron Corporation (NYSE:CVX), compared to 59 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is a prominent position holder in the company, with 6.8 million shares worth approximately $976 million. 

In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.” 

3. Amazon.com, Inc. (NASDAQ:AMZN)

Duquesne Capital’s Stake Value: $102,406,000

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is one of the best stocks to buy for flat markets according to Stanley Druckenmiller. The billionaire acquired a position in Amazon.com, Inc. (NASDAQ:AMZN) in the third quarter of 2022, purchasing 906,250 shares worth $102.40 million, representing 5.8% of the total 13F holdings. 

On December 19, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) but trimmed the price target on the shares to $150 from $170. He lowered his FY23 and FY24 revenue estimates by 4% and 5%, respectively, and his FY23 and FY24 operating income estimates by 9% and 8%, respectively, putting his forecasts “below the Street” to factor in the ongoing softness in online retail and cloud computing demand, the analyst told investors. However, the analyst continues to view Amazon.com, Inc. (NASDAQ:AMZN) as “highly attractive for long-term investors,” calling it a “Dislocated High Quality” stock.

According to Insider Monkey’s data, 269 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) at the end of September 2022, compared to 252 funds in the last quarter. Jaime Sterne’s Skye Global Management is a prominent stakeholder of the company, with 15.5 million shares worth $1.75 billion. 

Here is what Farnam Street Investments has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Change doesn’t just impact investors. Business people also bet for or against change. Jeff Bezos was once asked this exact question:

“You can build a business strategy around the things that are stable in time. It’s impossible to imagine a future ten years from now where a customer comes up and says, ‘Jeff, I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. So we know the energy we put into these things today will still be paying off dividends ten years from now. When you have something you know is true, you can afford to put a lot of energy into it.”

A lot of energy… and more than $172 billion in capital expenditure in the last fifteen years.

Deeper, slower moving layers turn exponential growth into “S-curves.” A rapidly dividing bacteria crashes into the resource-wall of its Petri dish. Nineteenth-century commercial robber barons were smacked by the governance layer of the Sherman Antitrust act. Amazon (NASDAQ:AMZN) Prime free shipping leaned on the creaking infrastructure of the U.S. Postal Service until it was forced to invest in its own infrastructure (all those delivery vans you see driving around).

Hopefully, next time you’re thinking about change, you can recall pace layers as a helpful construct to understand how successful systems change.

2. Eli Lilly and Company (NYSE:LLY)

Duquesne Capital’s Stake Value: $156,791,000

Number of Hedge Fund Holders: 75

Eli Lilly and Company (NYSE:LLY) is an American company that discovers, develops, and markets human pharmaceuticals worldwide. On December 12, Eli Lilly and Company (NYSE:LLY) declared a $1.13 per share quarterly dividend, a 15.3% increase from its prior dividend of $0.98. The dividend is distributable on March 10, 2023 to shareholders of record on February 10. 

Securities filings for the third quarter of 2022 revealed that Stanley Druckenmiller’s Duquesne Capital raised its stake in Eli Lilly and Company (NYSE:LLY) by 64%, holding 484,895 shares worth $156.8 million. 

On December 19, JPMorgan analyst Chris Schott raised the firm’s price target on Eli Lilly and Company (NYSE:LLY) to $400 from $380 and maintained an Overweight rating on the shares. The analyst sees “encouraging” core product and pipeline traction.

According to Insider Monkey’s data, 75 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY) at the end of the third quarter of 2022, compared to 70 funds in the last quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 2.4 million shares worth $802.8 million. 

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company (NYSE:LLY) in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

1. Coupang, Inc. (NYSE:CPNG)

Duquesne Capital’s Stake Value: $323,970,000

Number of Hedge Fund Holders: 36

Coupang, Inc. (NYSE:CPNG) is a South Korean company that owns e-commerce businesses through its mobile applications and websites primarily in South Korea. It operates through two segments – Product Commerce and Growth Initiatives. Coupang, Inc. (NYSE:CPNG) is the largest holding in Druckenmiller’s portfolio. He owns 19.4 million shares of the company worth $324 million as of the end of September 2022. 

On December 1, New Street analyst Jin Yoon initiated coverage of Coupang, Inc. (NYSE:CPNG) with a Buy rating and a $25 price target, citing his view that the company has a “clear path” to achieving its EBITDA targets by 2027.

According to Insider Monkey’s third quarter database, 36 hedge funds were long Coupang, Inc. (NYSE:CPNG), compared to 37 funds in the last quarter. Lee Ainslie’s Maverick Capital is the largest position holder in the company, with 81.25 million shares worth $1.35 billion.

You can also take a look at 10 Fastest Growing Car Companies in the World and Jim Cramer’s Comeback Stocks.