Markets are bearish on Wednesday as investors await minutes from the Federal Open Market Committee’s September meeting, which would likely give an idea about policymakers’ mood regarding rate hike and central bank’s outlook on economy.
Meanwhile, several stocks are making headlines this morning, including Stanley Black & Decker, Inc. (NYSE:SWK), Newell Brands Inc (NYSE:NWL), Toyota Motor Corp (ADR) (NYSE:TM), Agios Pharmaceuticals Inc (NASDAQ:AGIO), and Celgene Corporation (NASDAQ:CELG). Let’s find out why these stocks are in the spotlight and also see what the investors tracked by us think about them.
The smart money sentiment is an important metric that can be used to assess the long-term profitability of a stock. While there are thousands of stocks trading daily on the market, taking a look at what hedge funds think about certain companies can narrow down the search significantly. At Insider Monkey, we track more than 740 hedge funds, whose 13F filings we analyze as part of our small-cap strategy. Our research has shown that imitating a portfolio that includes the 15 most popular small-cap stocks among hedge funds can outperform the market by as much as 95 basis points per month on average (see more details here).
Stanley Black & Decker to Acquire Newell Brands Tools Business
Stanley Black & Decker, Inc. (NYSE:SWK) is in the spotlight today after the company said it would acquire Newell Brands Inc (NYSE:NWL)’s tools business for about $1.95 billion. The deal will help Stanley Black & Decker increase its tools business and storage footprint in the industry. The company said the buyout will save it $80 million to $90 million annually after three years. The deal, part of Newell’s plans to trim its portfolio and sell around 10% of the company after its recently completed $15 billion merger with Jarden Corp, is expected to close in the first half of 2017. Newell said in a statement that the company will conclude the process of selling its assets in the first half of 2017. Some of the important units to be sold include Voelkl and K2 winter sports brands, the heaters, humidifiers and fans business and the Rubbermaid consumer storage operations. A total of 27 funds tracked by Insider Monkey were long Stanley Black & Decker, Inc. (NYSE:SWK) at the end of the second quarter, while 51 funds were bullish on Newell Brands Inc (NYSE:NWL).
Toyota and Suzuki to Explore Partnership
Toyota Motor Corp (ADR) (NYSE:TM) is on investors’ radars today after it said it was exploring a possible partnership with Suzuki Motor Corp. amid a rising appetite for technological innovation in the industry and growth opportunities. The companies said they would seek a corporation on new vehicle technologies that are changing the industry in an “unprecedented” way. Analysts think that a slowing global growth, massive innovation in the automobile industry, spearheaded by Silicon Valley’s startups, and tightening regulations are making the two giants sit together. “As the environment which surrounds the automobile industry has been changing drastically, we need to have the ability to respond to changes in order to survive,” said Akio Toyoda, president of Toyota. In other news, Toyota also said it will recall some 340,000 Prius models produced between August 2015 and October 2015 due to issues with the braking system. Among the funds tracked by Insider Monkey, 13 owned shares of Toyota Motor Corp (ADR) (NYSE:TM) at the end of the second quarter.
On the next page, we will continue our discussion on today’s hottest stocks.