Here’s Why You Should Pay Attention to Stanley Druckenmiller’s Top Picks

As stated earlier, Duquesne initiated seven positions during the fourth quarter and what’s interesting is that the top two new positions are represented by aerospace and defense companies. Raytheon Company (NYSE:RTN) ranked as Duquesne’s fourth-largest long position, which contained 417,800 shares, while Northrop Grumman Corporation (NYSE:NOC) ended the fourth quarter as the seventh-largest. With rising geopolitical tensions around the world, aerospace & defense stocks seem like a solid bet. Even though the US has reduced its military spending, Asia and Middle East and Africa are ramping up their spending. In the past several years, Raytheon Company (NYSE:RTN) managed to beat earnings and revenue estimates almost every quarter and analysts currently have a consensus ‘Buy’ rating and an average price target of $139.13.

In Northrop Grumman Corporation (NYSE:NOC), Duquense initiated a stake amid the company obtaining an important contract from the Pentagon valued at over $20 billion. Northrop Grumman will build new long-range bombers for the US Air Force with the first jet expected in 2025. Initially Northrop Grumman Corporation (NYSE:NOC), which competed against a Boeing and Lockheed Martin team, will deliver 21 jets, but the contract could be extended to 100 jets and could be worth $80 billion.

Among the funds in our database, Northrop Grumman was more popular than Raytheon Company (NYSE:RTN) at the beginning of the year with 40 funds holding shares of the former, versus 35 funds reporting stakes in the latter.

Disclosure: none