In this article, we discuss 5 stocks to buy according to Peter Simmie’s Bristol Gate Capital Partners. If you want to read a detailed analysis of Simmie’s investment philosophy and current portfolio allocation strategies, go directly to 10 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital Partners.
5. Thermo Fisher Scientific Inc. (NYSE:TMO)
Bristol Gate Capital Partners’ Stake Value: $90,926,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.14%
Number of Hedge Fund Holders: 93
Thermo Fisher Scientific Inc. (NYSE:TMO) provides software, services, reagents, equipment, and analytical instruments for research, analysis, discovery, and diagnostics. Thermo Fisher Scientific Inc. (NYSE:TMO)’s largest Q2 shareholder is Fisher Asset Management, with a $1.27 billion stake which saw a 4% increase over the previous quarter.
On August 24, Credit Suisse analyst Dan Leonard initiated coverage of Thermo Fisher Scientific Inc. (NYSE:TMO), rating the stock as ‘Neutral’ with a $675 price target. The analyst was optimistic about the company’s better business mix and share gain prospects.
Thermo Fisher Scientific Inc. (NYSE:TMO) recently experienced a decrease in hedge fund interest. Thermo Fisher Scientific Inc. (NYSE:TMO) was in 93 hedge fund portfolios at the end of the second quarter of 2022. There were 101 hedge funds in our database with Thermo Fisher Scientific Inc. (NYSE:TMO) holdings at the end of the previous quarter.
Bristol Gate Capital Partners sold 2,660 shares of Thermo Fisher Scientific Inc. (NYSE:TMO), reducing its remaining stake by about 2%. At the end of the second quarter, the hedge fund still held 167,363 shares of Thermo Fisher Scientific Inc. (NYSE:TMO), worth about $90.93 million, representing 5.14% of its portfolio.
Investment firm Stewart Asset Management explained its insights for Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q2 2022 investor letter, stating:
“Recently we initiated two new investments. One in Thermo Fischer Scientific (NYSE:TMO), a supplier to the life sciences industry. We have followed the company for many years and the recent downturn in share price gave us a good entry price at which to invest. Thermo has had strong earnings growth for many years and is led by a superb team. The company’s recent acquisitions make it a full-service supplier to the biopharma and biotech industries.”
4. American Tower Corporation (NYSE:AMT)
Bristol Gate Capital Partners’ Stake Value: $91,893,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.19%
Number of Hedge Fund Holders: 52
American Tower Corporation (NYSE:AMT) owns, manages, and develops multi-tenant real estate buildings in addition to offering real estate investment services. In addition, our database shows that 52 hedge funds held stakes in American Tower Corporation (NYSE:AMT) as of the end of the second quarter of 2022, versus 50 funds in the first quarter of 2022.
After meeting with CFO Rod Smith, on September 8, JPMorgan analyst Philip Cusick reaffirmed an ‘Overweight’ rating with a $305 price target on American Tower Corporation (NYSE:AMT). The analyst left with progressively more optimistic opinions on the economies in the United States, Europe, and the Asia-Pacific, as well as motivation from developments in Latin America and Africa.
Akre Capital Management held a position in American Tower Corporation (NYSE:AMT) exceeding $1.78 billion, making it the firm’s largest shareholder in the second quarter of 2022. In the second quarter of 2022, Bristol Gate Capital Partners owned 359,537 shares of American Tower Corporation (NYSE:AMT), worth $91.89 million. This represented 5.19% of the investment portfolio of the hedge fund.
ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter. Here is what the fund had to say:
“The top contributor was our sole real estate holding American Tower (NYSE:AMT), the leading independent wireless tower operator with roughly 221,000 properties globally, including about 43,000 in the U.S., 76,000 in India and 23,000 in Brazil. The company’s business model is to lease space on its towers to predominantly wireless carriers on a long-term basis, generally ranging 5–10 years in duration, with built-in price escalators. This approach results in a stable and predictable cash flow business with high incremental margins — attractive qualities especially in volatile markets like the second quarters.”
3. Cintas Corporation (NASDAQ:CTAS)
Bristol Gate Capital Partners’ Stake Value: $93,506,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 32
Cintas Corporation (NASDAQ:CTAS) primarily serves clients in the United States, Canada, and Latin America with corporate identity uniforms and related business services. Since Cintas Corporation (NASDAQ:CTAS) went public in 1983, it has paid a dividend yearly. Cintas Corporation (NASDAQ:CTAS) announced a quarterly dividend of $1.15 per share on July 26. This is a 21.1% increase over the $0.95 dividend paid before. This was the company’s 39th consecutive annual dividend increase.
On August 17, Baird analyst Andrew Wittmann reaffirmed an ‘Outperform’ rating on Cintas Corporation (NASDAQ:CTAS) and increased his price objective from $440 to $475. Overall, 32 hedge funds monitored by Insider Monkey were bullish on Cintas Corporation (NASDAQ:CTAS) in the second quarter. The stakes of these funds are valued at $1.14 billion.
Bristol Gate Capital began building its stake in Cintas Corporation (NASDAQ:CTAS) in the second quarter of 2016. In the second quarter of 2022, it held 250,329 shares of Cintas Corporation (NASDAQ:CTAS). These were worth $93.51 million and accounted for 5.28% of its portfolio. Cintas Corporation (NASDAQ:CTAS) is the third-largest holding of Bristol Gate Capital Partners.
Here is what Cooper Investors, an investment management firm, has to say about Cintas Corporation (NASDAQ:CTAS) in its Q1 2022 investor letter:
“During the quarter the Fund established a position in Cintas Corporation, a market leader in uniform rental services across North America (Mcap $44bn). This service provides workwear for large corporate and government clients, for example managing supply and laundry of uniforms for the nationwide employee base of customers such as Home Depot…. (Click to read the full text).”
2. Activision Blizzard, Inc. (NASDAQ:ATVI)
Bristol Gate Capital Partners’ Stake Value: $94,813,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 84
Activision Blizzard, Inc. (NASDAQ:ATVI) is an entertainment industry holding corporation that creates and distributes interactive video services and content. Hedge funds are piling into Activision Blizzard, Inc. (NASDAQ:ATVI). At the close of Q2 2022, Insider Monkey found 84 hedge funds long Activision Blizzard, Inc. (NASDAQ:ATVI), up from 80 funds in the previous quarter. Berkshire Hathaway is the leading shareholder of Activision Blizzard, Inc. (NASDAQ:ATVI) in the second quarter, with a position consisting of 68.40 million shares worth $5.33 billion.
In the second quarter of 2022, Bristol Gate Capital Partners held 1.22 million shares of Activision Blizzard, Inc. (NASDAQ:ATVI), which amounted to $94.81 million and occupied 5.36% of the hedge fund’s total portfolio.
On August 4, analyst Benjamin Soff at Deutsche Bank cut his price objective on Activision Blizzard, Inc. (NASDAQ:ATVI) from $95 to $84 while maintaining a ‘Hold’ rating for the stock. The analyst reasonably assessed the likelihood that the government would approve Microsoft Corporation (NASDAQ:MSFT)’s proposed acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI).
1. Dollar General Corporation (NYSE:DG)
Bristol Gate Capital Partners’ Stake Value: $101,483,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.74%
Number of Hedge Fund Holders: 51
Discount retailer Dollar General Corporation (NYSE:DG) offers a range of goods throughout the mid-western, southern, southwestern, and eastern regions of the United States. Bristol Gate Capital Partners holds 413,474 shares of Dollar General Corporation (NYSE:DG) worth $101.48 million, representing 5.74% of the fund’s overall portfolio.
After Dollar General Corporation (NYSE:DG)’s “strong” Q2 report, Morgan Stanley analyst Simeon Gutman increased his price objective on Dollar General to $270 from $250 and maintained an ‘Overweight’ rating on the stock, referring to it as his top stock in the Dollar Store sector.
According to Insider Monkey’s data, 51 hedge funds were bullish on Dollar General Corporation (NYSE:DG) at the end of June 2022, with combined stakes worth $2.37 billion, compared to 53 funds in the prior quarter worth $2.25 billion. William B. Gray’s Orbis Investment Management is the most prominent shareholder of Dollar General Corporation (NYSE:DG) in the second quarter, with a stake consisting of 1.59 million shares valued at $390.04 million.
You can also take a peek at 10 Stocks to Buy According to Kevin McCarthy’s Breakline Capital and 10 Stocks to Buy According to Mark McMeans’ Brasada Capital Management.
