Below are Barry Rosenstein and Jana Partners’ 5 top stock picks. For a comprehensive list please see Barry Rosenstein and Jana Partners Top Stock Picks.
5. Bloomin’ Brands, Inc. (NASDAQ: BLMN)
The restaurant chain Bloomin’ Brands, Inc. (NASDAQ: BLMN) is the fifth-largest stock holding of Jana Partners’ stock portfolio. The investment accounted for 6.61% of the overall portfolio at the end of the latest quarter.
Although shares of the restaurant chain rebounded in the past few months, the stock price still fell 14% in 2020. Its third-quarter revenue of $771.3 million plunged 20.2% year over year in the September quarter.
The future fundamentals of Bloomin’ Brands improved significantly after the coronavirus vaccine discovery. This is clearly reflecting in the share price recovery of almost 30% in the last two months.
4. Encompass Health Corporation (NYSE:EHC)
The healthcare services giant Encompass Health Corporation (NYSE: EHC) gained Barry Rosenstein’s investment firm’s confidence in the latest quarter. The hedge fund initiated a big position healthcare services provider by purchasing 1.7 million shares valued at $113 million, accounting for 10% of the overall portfolio.
Encompass Health Corporation’s stock price rallied close to 35% in the last two months, thanks to coronavirus vaccine innovation. Shares of Encompass are up 135% in the past five years.
In addition, the company also offers dividends to investors. It has raised dividends in the past seven successive years while the average dividend growth rate stands around 7.12%. The company has generated $1.17 billion in the September quarter revenue.
3. SPDR S&P 500 Trust ETF (NYSEARCA:SPY)
Barry Rosenstein hedge fund Jana Partners also looks bullish over the broader market fundamentals. The hedge fund has been holding an investment of $121 million in SPDR S&P 500 Trust ETFs, accounting for 10.77% of the overall portfolio. It is the third-largest holding of Jana Partners. The hedge fund has raised its investment by 7% in the latest quarter.
It also appears that Barry Rosenstein’s investment in ETFs worked for the hedge fund. This is because the price of SPDR S&P 500 Trust ETF soared 14% in 2020, accelerating the five years gains to almost 80%.
Moreover, the hedge fund has also bagged big dividends. The SPDR S&P 500 Trust ETF has raised dividends in the past 11 successive years. The average dividend growth rate in the past five years stands around 8%.
2. Perspecta Inc. (NYSE: PRSP)
The information technology company Perspecta Inc. (NYSE: PRSP) is the second-largest stock holding of Jana Partners. The hedge fund has been increasing its position in Perspecta despite underperformance in 2020.
The share price of information technology company fell 13% in 2020. Perspecta has reported a 2.5% year over year decline in September quarter revenue. On the positive side, the company offers more than a 1.5% dividend yield to investors. It currently offers a quarterly dividend of $0.28 per share.
Besides Jana Partners that has raised its stake in Perspecta by 8% in the latest quarter, other hedge funds are less bullish on the information technology company. It was in 36 hedge funds’ portfolios at the end of September compared to the all-time high of 50.
1. Conagra Brands, Inc. (NYSE:CAG)
A consumer packaged goods food company Conagra Brands, Inc. (NYSE: CAG) is the largest stock holding of Barry Rosenstein’s hedge fund. The firm has been holding Conagra brands over the past five years. It currently accounts for 34.30% of the overall portfolio.
Although shares of Conagra Brands traded in the green this year, the stock price is still down 13% in the past five years. However, the firm benefited from its 3% dividend yield. The company has recently raised the quarterly dividend by 29% to $0.275 per share, thanks to strong financial growth. Conagra Brands has generated September quarter revenue of $2.68 billion, up 12% from the year-ago period.
Please also see: Top 10 Retail Stocks to Buy Now and 12 Best Genomic Stocks to Buy Now
