Many investors and analysts are focused on the Federal Reserve today as the FOMC begins their deliberations on whether to raise interest rates.
In this article, we find out why five companies, Apple Inc. (NASDAQ:AAPL), Anadarko Petroleum Corporation (NYSE:APC), Lockheed Martin Corporation (NYSE:LMT), Campbell Soup Company (NYSE:CPB), and Intel Corporation (NASDAQ:INTC), are also attracting the attention of analysts. We will also use the latest 13F data to see how the smart money traded the five stocks during the second quarter.
Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 740 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).
After falling out of favor earlier in the year, Apple Inc. (NASDAQ:AAPL) is now firmly back in terms of the analyst limelight after the tech company introduced two new phones, the iPhone 7 and 7 Plus to rousing demand. Regarding recent analyst commentary, UBS recently has raised its price target to $127 from $115 and reaffirmed its ‘Buy’ rating on the stock, while analysts at RBC Capital, have inched up their price target to $120 from $117 and maintained their ‘Outperform’ rating. If demand for the new iPhone remains strong and the U.S. allows Apple to bring in overseas profits under a more generous tax schedule next year, Apple shares could have substantial upside left. Some smart money funds cut their stake in Apple in the second quarter. According to our data, 116 funds owned shares of Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, down by 36 funds from the previous quarter.
After its $2 billion purchase of Freeport-McMoRan Inc (NYSE:FCX)’s deepwater Gulf of Mexico assets, many analysts thought Anadarko Petroleum Corporation (NYSE:APC) got the better end of the deal, and reacted accordingly. Analysts at JPMorgan, for example, raised their price target to $70 per share from $64, noting the immediate accretion from the purchase as well as the higher planned spending in Anadarko Petroleum Corporation (NYSE:APC)’s onshore assets. Analysts at Macquarie were even more bullish, hiking their price target to $71 from $61 and maintaining Anadarko as its ‘Top Pick’ in the American E&P sector. Andreas Halvorsen‘s Viking Global raised its position in Anadarko Petroleum by 815% in the second quarter to over 7.8 million shares at the end of June.
On the next page, we examine Lockheed Martin Corporation, Campbell Soup Company, and Intel Corporation.