If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock. In its Deep Value Strategies Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is a pharmaceutical company.
On July 23, 2019, Miller Value Partners had released its Deep Value Strategies Q2 2019 investor letter. Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock has posted a return of 19.2% in the trailing one year period, outperforming the S&P 500 Index which returned 12.6% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock has fallen by 9.5%.
Let’s take a look at comments made by Miller Value Partners about Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock in the Q2 2019 investor letter.
“We also saw considerable price weakness from our two generic company holdings Endo Pharmaceutical (ENDP) and Teva Pharmaceutical (TEVA). Over the past couple of years, both companies have new business leaders who have already taken significant actions to cull unprofitable product lines, right-size cost structures and streamline operations. Teva Pharmaceutical is also rolling out new product offerings to the marketplace and Endo Pharmaceutical has a considerable new product opportunity with the potential to deliver incremental sales ahead of expectations over the next couple of years. Both companies have been under pressure, similar to peers, due to a multi-year cyclical downturn for generic pricing and ongoing concerns on future litigation expenses from historical opioid sales and alleged price-fixing. Both Teva and Endo were down significantly during the quarter. Current valuation levels for the companies appear to already be discounting significant future litigation expenses. Also, the history of the industry has shown settlements tend to be manageable for companies and paid out over multi-year time periods. Meanwhile, generic fundamentals appear to be turning around as recent industry pricing has started to stabilize. With the current earnings yields between 30-40%, a lot of fear appears already priced into the securities, making any change in market perceptions on the well-known risks potentially leading to higher market prices as both companies are at deep discounts to their intrinsic value.”
In Q1 2020, the number of bullish hedge fund positions on Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock increased by about 26% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Teva’s growth potential. Our calculations showed that Teva Pharmaceutical Industries Ltd (NYSE:TEVA) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.