In this article, we will look at 5 stocks to buy now according to David Einhorn’s Greenlight Capital. If you want to read about David Einhorn’s investment strategies and his hedge fund’s performance, you can go to 10 Stocks to Buy Now According to David Einhorn’s Greenlight Capital.
5. Weatherford International plc (NASDAQ:WFRD)
Greenlight Capital’s Stake Value: $23,426,000
Percentage of Greenlight Capital’s 13F Portfolio: 1.48%
Number of Hedge Fund Holders: 26
Weatherford International plc (NASDAQ:WFRD) operates as an energy services company through two segments: Western Hemisphere and Eastern Hemisphere. The company provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide.
Greenlight Capital went long in Weatherford International plc (NASDAQ:WFRD) in the first quarter of 2022. The fund’s stakes in the company are worth $23.42 million, which covers 1.48% of David Einhorn’s 13F portfolio.
Wall Street analysts are bullish on Weatherford International plc (NASDAQ:WFRD). On June 8, Deutsche Bank analyst James Hubbard initiated coverage of Weatherford International plc (NASDAQ:WFRD) with a Buy rating and a $49 price target. This June, Goldman Sachs analyst Ati Modak initiated coverage of Weatherford International plc (NASDAQ:WFRD) with a Buy rating and a $43 price target. Modak believes the stock’s risk-reward is skewed by a ratio of 4:1 to the upside.
At the close of Q1 2022, 26 hedge funds were long Weatherford International plc (NASDAQ:WFRD) and held stakes worth $708.67 million in the company. This is compared to 17 positions in the preceding quarter with stakes worth $526.38 million. The hedge fund sentiment for the stock is positive.
4. Southwestern Energy Company (NYSE:SWN)
Greenlight Capital’s Stake Value: $29,633,000
Percentage of Greenlight Capital’s 13F Portfolio: 1.88%
Number of Hedge Fund Holders: 35
Southwestern Energy Company (NYSE:SWN) is an independent energy company that engages in the exploration, development, and production of natural gas, oil, and natural gas liquids in the United States. The company operates through two segments: Exploration & Production, and Marketing. As of July 20, Southwestern Energy Company (NYSE:SWN) has gained 44.14% year to date and the company has free cash flows of $1.98 billion.
Wall Street analysts are bullish on Southwestern Energy Company (NYSE:SWN). On July 19, Mizuho analyst Vincent Lovaglio trimmed his price target on Southwestern Energy Company (NYSE:SWN) to $11 from $13 but maintained a Buy rating on the shares. Moreover, BofA analyst Doug Leggate upgraded Southwestern Energy Company (NYSE:SWN) to Buy from Neutral and raised his price target to $13 from $11.
In the first quarter of 2022, Greenlight Capital initiated a position in Southwestern Energy Company (NYSE:SWN) and purchased over 4 million shares of the company. As of March 31, the fund’s stakes in the company are worth $29.63 million, which covers 1.88% of its 13F portfolio.
At the end of Q1 2022, 35 hedge funds were eager on Southwestern Energy Company (NYSE:SWN) and held stakes worth $516.68 million in the company. This is compared to 24 positions in the prior quarter with stakes worth $255.41 million. The hedge fund sentiment for the stock is positive.
Here is what Greenlight Capital had to say about Southwestern Energy Company (NYSE:SWN) in its first-quarter 2022 investor letter:
“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”
3. Kyndryl Holdings Inc. (NYSE:KD)
Greenlight Capital’s Stake Value: $31,756,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.01%
Number of Hedge Fund Holders: 25
Kyndryl Holdings Inc. (NYSE:KD) operates as a technology services company and provides IT infrastructure services worldwide. The company offers cloud services, application, data, & artificial intelligence services, security & resiliency services, and network & edge services.
Kyndryl Holdings Inc. (NYSE:KD) is making strides and collaborating with industry-leading names like Oracle Corporation (NASDAQ:ORCL) and Cisco Systems, Inc. (NASDAQ:CSCO). On June 2, Kyndryl Holdings Inc. (NYSE:KD) announced a technology partnership with Cisco Systems, Inc. (NASDAQ:CSCO) to develop enterprise cloud services and network & edge computing solutions for enterprise customers as they undergo a digital transformation. On June 23, Kyndryl Holdings Inc. (NYSE:KD) announced that it will be helping Oracle Corporation (NASDAQ:ORCL) by becoming a primary delivery partner for its Oracle Cloud Infrastructure.
Greenlight Capital raised its stakes in Kyndryl Holdings Inc. (NYSE:KD) by 163% in Q1 2022, bringing them to $31.75 million. The investment covers 2.01% of David Einhorn’s 13F portfolio.
At the end of Q1 2022, 25 hedge funds were bullish on Kyndryl Holdings Inc. (NYSE:KD) and held stakes worth $119.30 million in the company. This is compared to 27 positions in the prior quarter with stakes of $186.90 million.
2. LivaNova PLC (NASDAQ:LIVN)
Greenlight Capital’s Stake Value: $36,004,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.28%
Number of Hedge Fund Holders: 33
LivaNova PLC (NASDAQ:LIVN) is a medical device company that designs, develops, manufactures, and sells therapeutic solutions worldwide. The company operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. As of May 5, Piper Sandler analyst Adam Maeder has a $99 price target and a buy-side Overweight rating on LivaNova PLC (NASDAQ:LIVN).
This July, Piper Sandler analysts reported that they see the medical technology sector approaching a trough, with a further 10% to 15% downside expected in shares. The analysts noted that they see persistent headwinds in the sector. However, they are recommending med-tech stocks like LivaNova PLC (NASDAQ:LIVN) to investors as a result of strong fundamentals, improving case volumes, and strong balance sheets.
In the first quarter of 2022, Greenlight Capital raised its stakes in LivaNova PLC (NASDAQ:LIVN) by 30%, bringing them to $36 million. The investment covers 2.28% of David Einhorn’s 13F portfolio.
At the close of Q1 2022, 33 hedge funds disclosed ownership of stakes in LivaNova PLC (NASDAQ:LIVN). The collective stakes of these hedge funds amounted to $1.17 billion. This is compared to 31 hedge funds in Q4 2021 with stakes worth $1.28 billion.
1. Resideo Technologies, Inc. (NYSE:REZI)
Greenlight Capital’s Stake Value: $36,064,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.29%
Number of Hedge Fund Holders: 25
Resideo Technologies, Inc. (NYSE:REZI) develops, manufactures, and sells comfort, residential thermal, and security solutions to commercial and residential clients in the United States, Europe, and internationally. The company operates in two segments: Products & Solutions, and ADI Global Distribution.
On July 6, Resideo Technologies, Inc. (NYSE:REZI) announced that it has acquired Electronic Custom Distributors, a Texas-based regional distributor of residential audio, video, automation, security, wired, and telecommunication products.
Resideo Technologies, Inc. (NYSE:REZI) is trading at bargain levels right now. As of July 19, the stock has a trailing twelve-month PE ratio of 11.13 and the company also has free cash flows of $188 million.
In the first quarter of 2022, Greenlight Capital raised its stakes in Resideo Technologies, Inc. (NYSE:REZI) by 30%, bringing them to $36 million. The investment covers 2.29% of David Einhorn’s 13F portfolio.
At the end of Q1 2022, 25 hedge funds held stakes in Resideo Technologies, Inc. (NYSE:REZI) worth $546.50 million. This is compared to 24 hedge funds in Q4 2021 with stakes worth $560.62 million.
Ariel Investments, an investment management firm, mentioned Resideo Technologies, Inc. (NYSE:REZI) in its “Ariel Fund & Ariel Appreciation Fund” fourth-quarter 2021 investor letter. Here is what the firm said:
“During the quarter, Ariel Fund added shares of leading supplier of residential thermal, comfort, and security solutions, Resideo Technologies, Inc. (REZI). While the company has struggled to find its footing since being spun-out of Honeywell in 2018, we see early evidence that the new management’s long-term strategic vision is both achievable and not yet being embraced by investors. We view this as an opportunity to own a niche business, well positioned to benefit from the ongoing housing recovery and a secular preference for more connected smart home solutions.”
You can also take a look at 10 Best SPACs to Buy According to David Einhorn’s Greenlight Capital and 10 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital.
