Five Capital Goods Stocks to Buy Now

#3 United Technologies Corporation (NYSE:UTX)

– Number of Hedge Fund Holders (as of June 30): 56
– Total Value of Hedge Fund Holdings (as of June 30): $3.89 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 4.50%

A total of 56 funds from our database owned shares of United Technologies Corporation (NYSE:UTX) at the end of the second quarter, up by five from the end of the first quarter. Hedge funds like United Technologies (UTX) because it is one of the largest, most diversified industrial conglomerates in the world. In 2015, the company reported sales of $56.1 billion, a number larger than the annual GDP of some small countries, selling everything from Otis elevators to climate control systems to military and commercial engines. United Technologies’ broad and diverse portfolio of essential industrial products reduces its risk to the business cycle. When everything seemed to go wrong in 2008 and 2009, United Technologies still reported EPS of $4.90 and $4.12, respectively, more than enough to cover its dividend by several multiples at the time. United Technologies’ large size also provides it with substantial economies of scale that competitors have a difficult time emulating. 

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#2 Thermo Fisher Scientific Inc. (NYSE:TMO)

– Number of Hedge Fund Holders (as of June 30): 57
– Total Value of Hedge Fund Holdings (as of June 30): $2.79 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 4.80%

The smart money is bullish on Thermo Fisher Scientific Inc. (NYSE:TMO). According to our data, the number of elite funds with holdings in Thermo Fisher Scientific Inc. (NYSE:TMO) rose by seven quarter-over-quarter to 57 at the end of June. Analysts are also bullish. Of the 16 analysts covering the stock, 15 have ‘Buy’ ratings and only one analyst has a ‘Hold’ rating. Most recently, Citigroup analysts maintained their ‘Buy’ rating on July 29 and raised their price target to $182 from $160.

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#1 General Motors Company (NYSE:GM)

– Number of Hedge Fund Holders (as of June 30): 65
– Total Value of Hedge Fund Holdings (as of June 30): $3.3 billion
– Hedge Fund Holdings as Percent of Float (as of June 30): 7.50%

General Motors Company (NYSE:GM) has the opportunity to tackle the coming vehicle disruption problem head-on. After making a $500 million investment in ride sharing app Lyft in January and committing to testing self-driving Chevrolet Bolt EVs with Lyft within a year, GM has an opportunity to buy all of Lyft, which has recently decided to shop itself for $10 billion or less. If GM buys Lyft, or if it successfully adjusts to the autonomous driving ride-sharing age, its current forward P/E multiple of 5.4 will likely increase. Warren Buffett’s Berkshire Hathaway owned 50 million shares of General Motors Company at the end of the second quarter.

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Disclosure: none