Most Searched Stocks Among Financial Advisors Show Tech and Consumer Sectors in Spotlight

With the US stock market having what is considered one of the worst starts of the year, investors are experiencing high levels of anxiety fueled by concerns about oil prices and the Chinese economy. Moreover, concerns about the future of the financial markets are expressed by some popular voices. Earlier this week, reports emerged that the Royal Bank of Scotland had issued a note to its clients, suggesting them to “sell everything except high-quality bonds”. Billionaire investor George Soros has also said that the current environment could suggest the approach of a crisis similar to that in 2008. In this way, the S&P 500 has lost more than 7% since the beginning of 2016, while Gold prices have inched up, signaling investors’ concerns.

It has become a sort-of tradition for us to look into the stocks that financial advisors have been searching during the past week. Based on the data provided by Trackstar, the official newsletter of Investing Channel’s Intuition, we look into some of the most searched stocks by financial advisors and assess the latest news that drove the investors’ attention. We also include the hedge fund sentiment towards these stocks, in order to get a better idea about the long-term potential of the companies included in the list. The sentiment is based on our compilation of data from quarterly 13F filings of more than 700 funds, which we analyze as part of our small-cap strategy (read more about our market-beating strategy).

The list of the top 20 most searched tickers among financial advisors also supports the investors’ uncertainty in the future of the markets. While the technology sector still dominated the list, many companies from the consumer goods sector also made it to the top, which is not surprising, since many consumer stocks are considered defensive and tend to outperform the broader indices in periods of market turmoil. In this article we are going to look at some of the highlights from the most searched tickers among financial advisors.

In the week between January 3 and January 9, Apple Inc. (NASDAQ:AAPL) has regained the leadership position, after ranking on the third spot a week earlier (see the top from the previous week here). The company’s stock has lost around 8% during the week, as investors continued to fear about a decline in iPhone sales this year. Also last week, The Wall Street Journal reported that Apple Inc. (NASDAQ:AAPL) had acquired a startup engaged in the development of artificial intelligence technology for facial expression analysis. However, it is not clear how Apple plans to incorporate the startup Emotient Inc.’s technology into its own products and services.

Despite the bad news, Apple Inc. (NASDAQ:AAPL) remains an attractive stock and its cheap valuation at just 9 times forward earnings makes it even more appealing. Apple has been one of the most popular stocks among the investors we track, having ranked on the second spot at the end of September, with 133 funds from our database reporting long positions in the last round of 13F filings. We can assume that Apple Inc. (NASDAQ:AAPL) has remained a smart money darling and will most likely rank as one of the favorite stocks after we analyze the data from the current round of 13Fs, which will end in February. Billionaires Carl Icahn, David Einhorn, and Ken Fisher are just three top investors that are bullish on the company, among others.

Read on to see what other stocks ranked as the most searched among financial advisors in the week ended January 9.

Netflix, Inc. (NASDAQ:NFLX) jumped several positions and ranked as the second most-searched ticker among financial advisors, compared to the 14th spot a week earlier. The main news last week involved the launch of Netflix worldwide, the service now covering most countries in the world. The only disappointing exception from the list was China, where Netflix is not available (as well as North Korea, Syria and Crimea). However, China is a market that is still pursued by Netflix, Inc. (NASDAQ:NFLX), although there are many regulatory hurdles along the way. Despite the positive news, Netflix’s stock has lost around 7% since the beginning of the year, dragged by the overall market sentiment.

Smart money investors like Netflix, mainly due to its focus on the long-term. In the past 52 weeks, Netflix’s stock more than doubled, as the company missed the bottom line estimates in two quarters, but posted a significant earnings surprise in the other two. Among the investors in our database, 57 reported long positions in the company as of the end of September, versus 50 funds a quarter earlier. Moreover, these investors held almost 15% of the company’s outstanding stock at the end of the third quarter. Chase Coleman remains one of the Netflix, Inc. (NASDAQ:NFLX)’s biggest fans, with Tiger Global Management holding around 18 million shares, according to its last 13F filing.

The healthcare sector didn’t enjoy the same level of popularity among financial advisors last week, compared to the previous periods. Nevertheless, Gilead Sciences, Inc. (NASDAQ:GILD) ranked as the third most-searched stock. The biotech industry has taken a hard hit since the beginning of the year, with the NASDAQ Biotech Index sliding by more than 16%. However, Gilead’s shares have outperformed the index, declining by less than 10% during the same period. Last week, the company which manufactures the leading Hepatitis C drugs Harvoni and Sovaldi, announced the approval of a priority New Drug Application review of a new Hep C combination drug from the US Food and Drug Administration. The drug combination involves a once-daily fixed doses of Sovaldi and velpatasvir, an investigational pan-genotypic NS5A inhibitor. The NDA was filed in October and FDA plans to issue a final approval for the drug on June 28.

Gilead Sciences, Inc. (NASDAQ:GILD)’s strong financial results, combined with a quarterly dividend of $0.43 and a stock buyback program, make the company one of the hedge funds’ favorites in the healthcare sector. Out of more than 730 funds tracked by Insider Monkey, 90 reported long positions in the company as of the end of the third quarter, higher than 84 funds a quarter earlier. Billionaire David Shaw’s D. E. Shaw & Co. is one of the investors bullish on Gilead Sciences, Inc. (NASDAQ:GILD). It has increased its stake by 41% to 6.15 million shares during the third quarter.

As we stated earlier, the consumer goods sector gained a lot of popularity among financial advisors and the sector stock that leads the list is Wal-Mart Stores, Inc. (NYSE:WMT). During the last week, Wal-Mart’s stock gained 3.65% and is 1% in green year-to-date. The first two trading weeks of 2016 also brought reports from retailers about their holiday sales figures. And while Amazon.com, Inc. (NASDAQ:AMZN) posted a record number of orders, Macy’s, Inc. (NYSE:M) announced a decline in sales during November in December, blaming warm weather and strong dollar among the reasons for the slump. J C Penney Company Inc (NYSE:JCP) also reported strong sales growth for the two months, and while Wal-Mart Stores, Inc. (NYSE:WMT) did not release its holiday sales figures, the stock’s 30% drop in 2015, helped it maintain an upward trajectory since the beginning of 2015, despite the lack of any major news involving the company.

Among the funds we track, many are fond of Wal-Mart Stores, Inc. (NYSE:WMT) due to its size, strong dividend yield and significant buyback program, worth around $20 billion. In this way, 61 funds from our database held 3.40% of the company’s outstanding stock at the end of September, down from 65 funds a quarter earlier. Warren Buffett‘s Berkshire Hathaway trimmed its stake in Wal-Mart by 7% between July and September, and owns some 56.19 million shares, according to its latest 13F filing.

Finally, the only energy stock that made the list of the top 20 most searched tickers is Valero Energy Corporation (NYSE:VLO). With oil falling to decade lows amid reports of a glut and higher-than-expected US crude inventories, Valero’s stock is performing better than its sector peers involved in the exploration and production. Over the past 52 weeks, the stock has appreciated by more than 40%, and is down by some 8% since the beginning of the year. Last week, Valero Energy Corporation (NYSE:VLO) issued an investor presentation, in which it outlined its outlook. The refiner said, among other things, that it expects the demand to remain strong due to lower oil prices and the company plans to maintain its strong financial position, dividend payouts, and credit rating (see the presentation here).

Valero registered an increase in popularity among the funds we track, with 56 investors reporting long positions as of the end of September, versus 48 funds a quarter earlier. Moreover, these funds amassed around 6.20% of the company’s outstanding stock, holding stakes worth $1.84 billion in aggregate at the end of the third quarter of 2015. Cliff Asness’ AQR Capital Management and David Harding’s Winton Capital Management are among the investors with sizeable positions in Valero Energy Corporation (NYSE:VLO), holding 6.63 million shares and 1.37 million shares, respectively.

On the next page you can see the full list of the 20 most searched stocks among financial advisors, as well as some data related to the hedge fund sentiment toward them.

Disclosure: none