In this article, we discuss the stocks on the rise and the 5 best to buy now. If you want to read our detailed analysis of these stocks, go directly to Stocks On The Rise: 15 Best To Buy Now.
5. Bank of America Corporation (NYSE: BAC)
Number of Hedge Fund Holders: 97
Bank of America Corporation (NYSE: BAC) is placed fifth on our list of the stocks on the rise and the 15 best to buy now. The company provides banking and financial services and is based in North Carolina. On July 20, crypto news platform CoinDesk reported that the bank had started clearing and settling cryptocurrency exchange-traded products for hedge funds in Europe. The move allows hedge funds based in Europe to indirectly invest in crypto through the American bank, according to the news platform.
On June 2, investment advisory Truist initiated coverage of Bank of America Corporation (NYSE: BAC) stock with a Buy rating and a price target of $48. Gregg Gilbert, an analyst at the firm, issued the ratings update.
At the end of the first quarter of 2021, 97 hedge funds in the database of Insider Monkey held stakes worth $45 billion in Bank of America Corporation (NYSE: BAC), down from 99 in the previous quarter worth $35 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE: BAC) was one of them. Here is what the fund said:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
4. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE: JPM) is a New York-based financial services company. It is ranked fourth on our list of the stocks on the rise and the 15 best to buy now. On August 11, the bank announced that it would be converting four mutual funds into exchange-traded funds. The four funds that will be converted hold $10 billion in assets under management. Bryon Lake, the asset management head of the ETFs of the bank in the US, said that the move was part of a plan to direct investment capabilities towards desired outcomes.
On July 14, investment advisory Credit Suisse reiterated an Outperform rating on JPMorgan Chase & Co. (NYSE: JPM) stock and raised the price target to $177 from $170, noting that the upside to the stock was driven by revenue, lower credit, and operating leverage.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 6.6 million shares worth more than $1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE: JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
3. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 134
The Walt Disney Company (NYSE: DIS) is a California-based mass media and entertainment firm. It is placed third on our list of the stocks on the rise and the 15 best to buy now. On July 22, news publication Orlando Sentinel reported, citing official documents, that a plan by the company to build a regional campus in Florida could result in tax breaks worth $570 million for the firm spread over a period of 20 years. The mass media company will spend over $850 million on the project, the publication claimed.
On July 14, investment advisory Tigress Financial kept a Buy rating on The Walt Disney Company (NYSE: DIS) stock with a 12-month price target of $227, noting that the firm was positioned to benefit from the post-pandemic economic recovery.
At the end of the first quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $12.5 billion in The Walt Disney Company (NYSE: DIS), down from 144 in the preceding quarter worth $16.4 billion.
In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE: DIS) was one of them. Here is what the fund said:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
2. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is ranked second on our list of the stocks on the rise and the 15 best to buy now. The company markets financial technology services and is based in California. On August 10, the company announced that it would be launching a new feature called Cash Back to Crypto that would allow Venmo credit card holders to purchase crypto directly through their Venmo accounts. The company recently beat market expectations on earnings per share for the second quarter by $0.03.
On July 29, investment advisory Morgan Stanley reaffirmed an Overweight rating on PayPal Holdings, Inc. (NASDAQ: PYPL) stock and raised the price target to $340 from $337, noting that there were several positive indicators of growth for the firm in the coming months.
At the end of the first quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $14.7 billion in PayPal Holdings, Inc. (NASDAQ: PYPL), down from 147 in the preceding quarter worth $15.9 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ: PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
1. Alphabet Inc. (NASDAQ: GOOG)
Number of Hedge Fund Holders: 159
Alphabet Inc. (NASDAQ: GOOG) is placed first on our list of the stocks on the rise and the 15 best to buy now. The firm operates as a technology company and is headquartered in California. It also offers online advertising services. On August 4, following a decision by the company to allow advertisements related to Bitcoin – the most popular cryptocurrency – on its platform, the price of Bitcoin jumped above $40,000. In the second quarter earnings, the firm beat market expectations on earnings per share by $7.99.
On July 28, investment advisory JPMorgan raised the price target on Alphabet Inc. (NASDAQ: GOOG) stock to $3,250 from $2,875, highlighting that key components of a bull thesis for the firm were playing out in the second quarter.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $6.1 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Consumer Discretionary Stocks to Buy Now.
