5 Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital

2. Tesla, Inc. (NASDAQ:TSLA)

Stevens Capital Stake Value: $17,128,000
Percentage of Stevens Capital’s 13F Portfolio: 5.01%
Number of Hedge Fund Holders: 60   

Tesla, Inc. (NASDAQ:TSLA) develops, produces, and sells electric automobiles and the batteries that power them, and was co-founded by acclaimed inventor and entrepreneur Elon Musk in 2003. RBC Capital analyst Joseph Spak raised his price target on Tesla, Inc. (NASDAQ:TSLA) to $800 from $755 on October 21, but maintained his “Sector Perform” rating on the stock following the company’s third-quarter results beat.

Matthew Tewksbury’s Stevens Capital raised its position in Tesla, Inc. (NASDAQ:TSLA) by 228% to 25,200 shares in the second quarter, accounting for over 5.01% of the overall portfolio. In the third quarter of 2021, Tesla, Inc. (NASDAQ:TSLA) had an EPS of $1.86, beating estimates by $0.25. In addition, the company’s revenue clocked in at $13.76 billion, surpassing the forecast by $60 million.

The shares of Tesla, Inc. (NASDAQ:TSLA) have shown an impressive performance over the last 12 months, gaining 116.45% in value. The company ranks second on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. However, Tesla, Inc. (NASDAQ:TSLA) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 60 at the end of the second quarter compared to 62 positions in the previous quarter.

In its third-quarter 2021 investor letter, Worm Capital LLC mentioned Tesla, Inc. (NASDAQ:TSLA). Here is what the fund said:

“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?

The way we see it, Tesla is perhaps the generational example of the marginal gain aggregation theory. It’s also been our largest position for several years now. There are many ways to characterize and value this business (see previous letters for longform write-ups), but perhaps the best way to think about the company is that it is a highly vertically-integrated software and hardware firm that’s devoted entirely to aggregating marginal gains across its organization. The goal? Lower costs, improve thruputs, and dramatically enhance the value proposition—at scale—for consumers…” (Click here to see the full text).