Here’s Why Traders Are Watching These Stocks Today

Investors are expecting a respite from the post-Brexit saga on Tuesday as the three major indexes in the US opened over 1% in the green as crude oil and pound are also showing signs of a rebound, while gold has inched down.

Among the stocks worth watching today are Pfizer Inc. (NYSE:PFE), Horizon Pharma PLC (NASDAQ:HZNP), Mondelez International Inc (NASDAQ:MDLZ), Kraft Heinz Co (NASDAQ:KHC) and Exxon Mobil Corporation (NYSE:XOM). In this article, we discuss the factors that have put these stocks in the spotlight today and analyze how hedge funds in our database are positioned towards the companies in question.

Out of thousands of stocks that are trading on the market every day, it can be difficult sometimes to pick the right investment that can deliver market-beating returns. Here’s where our research comes in. By analyzing the equity portfolios of 700+ top investors, we can see what stocks they are collectively bullish on and use this data to compile a portfolio that can outperform the market. We have determined through this process that the best strategy is to follow the 15 most popular small-cap picks among hedge funds, which have delivered an alpha of around 81 basis points per month in our backtests covering the period between 1999 and 2012 (see more details).

Pfizer PFE pharmaceutical stock

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Pfizer To Launch New Plant in China

Pfizer Inc. (NYSE:PFE) is making headlines today after it announced on Tuesday that it is going to invest $350 million in eastern Hangzhou city of China on a biotechnology drugs facility. The investment comes when the pharmaceutical industry is going through a slowdown due to falling prices. In a press release, Pfizer said that the new plant will be completed in 2018, and it will manufacture complex medicines made from living organisms and biosimilars. Pfizer ranked among the most popular stocks in our database, with 109 funds holding around $8.6 billion worth of stock at the end of last year

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.Horizon Pharma Considering Selling Equity Stake

Investors are closely watching Horizon Pharma PLC (NASDAQ:HZNP) after Reuters reported that the company had hired Bank of America to seek help regarding selling of a “significant” equity stake to an investor. The source added Horizon Pharma is looking to ramp up its capital and positioning itself for acquisitions in the future. However, it is still not clear how the company will use the proceeds from the alleged transaction. The report also quoted Horizon Capital, which said in a statement that it has no plans to do any equity transactions to add capital to its balance sheet. Stephen Mandel’s Lone Pine Capital is one of the biggest stakeholders in Horizon Pharma PLC (NASDAQ:HZNP) from our database. It had around 13.99 million shares of the company, as of the end of the first quarter. Other than that, 34 hedge funds from our data also held positions in the company at the end of the first quarter.

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On the next page, we will discuss why Mondelez, Kaft Heinz and Exxon Mobil are on the radar of investors today.

Judge Throws Out Mondelez International, Kraft Heinz Lawsuit Dismissal Request

Troubles are on the horizon for Mondelez International Inc (NASDAQ:MDLZ) and Kraft Heinz Co (NASDAQ:KHC) after US District Judge Edmond Chang refused to dismiss the lawsuit against the two companies, and said the traders may proceed with the price rigging suit. In the lawsuit, several traders claim that Mondelez International and Kraft Heinz illegally manipulated the price of wheat at their expense in 2011, violating the Sherman antitrust law and the Commodity Exchange Act. Billionaire investor Warren Buffett’s Berkshire Hathaway is one of the 60 hedge funds from our system having long positions in Kraft Heinz Co (NASDAQ:KHC) at the end of March. On the other hand, 63 funds were bullish on Mondelez International Inc (NASDAQ:MDLZ) at the end of the first quarter. Nelson Peltz’s Trian Partners owns around 48.02 million shares of the company.

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Exxon Mobil Finds New Oil and Gas Deposits

Exxon Mobil Corporation (NYSE:XOM)’s stock has inched up today after Energy Minister of Guyana said on Monday that Exxon Mobil had found large deposits of oil and gas in recent drilling projects in the country. Exxon’s drilling facility in Guyana is located around 150 miles offshore from Guyana’s east coast. Richard S. Pzena’s Pzena Investment Management holds around 4.98 million shares of Exxon Mobil Corporation (NYSE:XOM) as of the end of the first quarter.

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Disclosure: None