In this article, we discuss the 5 stocks that doubled in 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks that Doubled in 2021.
5. Avis Budget Group, Inc. (NASDAQ:CAR)
Number of Hedge Fund Holders: 27
Year-To-Date Gain: 706%
Avis Budget Group, Inc. (NASDAQ:CAR) features on our list of stocks that doubled in 2021. The short interest on the stock is close to 30%. On November 2, the shares soared 99% in a day of trading that saw 25 million shares of the firm swap hands. The company reported earnings for the third quarter a day earlier, beating market estimates on earnings per share and revenue by $4.06 and $220 million.
JPMorgan and Deutsche Bank have both downgraded Avis Budget Group, Inc. (NASDAQ:CAR) stock recently. The former has an Underweight rating with a price target of $225 while the latter has a Sell rating with a price target $210.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Investment Management is a leading shareholder in Avis Budget Group, Inc. (NASDAQ:CAR) with 18.4 million shares worth more than $1.4 billion.
4. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 35
Year-To-Date Gain: 171%
Cowen analyst Oliver Chen recently raised the price target on Macy’s, Inc. (NYSE:M) stock to $32 from $27 and maintained an Outperform rating. Chen cautioned against reports of the company separating the ecommerce business from the parent firm, echoing sentiments made by Morgan Stanley earlier that the spinoff “did not make sense” since ecommerce would carry over over $11 billion in revenue as a separate entity, depreciating the share value of the stock.
Macy’s, Inc. (NYSE:M) stock has rallied since early October after Jana Partners LLC, an event-driven investment management firm, confirmed that it had bought a stake in the firm. The size of the stake has not yet been confirmed.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Yacktman Asset Management is a leading shareholder in Macy’s, Inc. (NYSE:M) with 8.2 million shares worth more than $157 million.
3. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 50
Year-To-Date Gain: 166%
Devon Energy Corporation (NYSE:DVN) is one of the energy stocks that have benefited massively from the recent increase in oil prices. The company, which had been in gradual recovery mode after the lows of 2020, was also given a boost after it hiked fixed-plus-variable dividend by 71% and beat market predictions on earnings for the third quarter. Analysts have forecast that oil firms will outperform the benchmark S&P 500 in the coming months.
Devon Energy Corporation (NYSE:DVN) was one of the firms exploring the acquisition of the Permian Basin oil fields owned by Shell, according to news publication Bloomberg. However, rival ConocoPhillips purchased them for close to $10 billion at the end of September this year.
Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 7.5 million shares worth more than $219 million.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 55
Year-To-Date Gain: 113%
Ford Motor Company (NYSE:F) stock has posted incredible gains this year as the company invests heavily in electric vehicles. New EVs, including the flagship F-150 electric truck, one of the most hyped launches of the year, have renewed interest in the automaker as a serious EV player. The company is also gaining a lot of traction among retail investors on internet forums like Reddit and Robinhood.
Benchmark analyst Michael Ward recently maintained a Buy rating on Ford Motor Company (NYSE:F) stock and raised the price target to $20 from $18, appreciating the earnings beat of the firm in the third quarter.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.10 billion in Ford Motor Company (NYSE:F), up from 49 in the preceding quarter worth $2.19 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
Year-To-Date Gain: 103%
NVIDIA Corporation (NASDAQ:NVDA) has climbed this year as chip prices have skyrocketed amid high demand and supply chain issues. The rise of crypto mining, many of which require high-powered chips made by the firm, has also helped push the stock higher. Since analysts predict that chip prices will remain high well into 2022, and as crypto stocks rally again after a second quarter slowdown, the stock still has room to climb higher.
Piper Sandler, KeyBanc, and Summit Insights are all constructive on NVIDIA Corporation (NASDAQ:NVDA) for the coming months. The company is also looking to expand by marketing special chips aimed at cloud companies and data centers.
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation (NASDAQ:NVDA), up from 80 the preceding quarter worth $6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 15 Best Strong Buy Stocks to Invest In.
