In this article we will be taking a look at top 5 stock picks of Mika Toikka’s AlphaCrest Capital. To read our detailed analysis, you can go directly to see Top 10 Stock Picks of Mika Toikka’s AlphaCrest Capital.
5. Morgan Stanley (NYSE:MS)
AlphaCrest Capital’s Stake Value: $13.224 million
Number of Hedge Fund Holders: 61
Morgan Stanley (NYSE:MS) is one of those companies which needs no introduction, as the name is synonymous with prestige banking. Currently, Morgan Stanley (NYSE:MS) has been in the news regarding its attempt to purchase American Financial Systems.
In its Q3 2021 investor letter, Artisan Partners discussed Morgan Stanley (NYSE:MS). Here is what it said:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
4. The Home Depot, Inc. (NYSE:HD)
AlphaCrest Capital’s Stake Value: $14.293 million
Number of Hedge Fund Holders: 75
Another household name among the top stock picks of Mika Toikka’s AlphaCrest Capital is The Home Depot, Inc. (NYSE:HD). The largest home improvement retailer in the United States, The Home Depot, Inc. (NYSE:HD) has close to half a million employees and more than 2,300 stores.
Distillate Capital Partners LLC mentioned The Home Depot, Inc. (NYSE:HD) in its Q1 2022 investor letter. Here is what it said:
“Taking advantage of valuation opportunities created by performance differences, the U.S. FSV strategy increased its weight in consumer discretionary by around 2.5%. Home Depot (NYSE:HD) was the largest position that was added to after falling by 27% in price in Q1.”
3. CVS Health Corporation (NYSE:CVS)
AlphaCrest Capital’s Stake Value: $15.852 million
Number of Hedge Fund Holders: 72
CVS Health Corporation (NYSE:CVS) is one of the biggest healthcare companies in the United States, with 2021 sales of more than $292.1 billion, and it one of the top stock picks of Mika Toikka’s AlphaCrest Capital. Even during the pandemic, CVS Health Corporation (NYSE:CVS) continued to grow its business.
CVS Health Corporation (NYSE:CVS) was mentioned in Madison Fund’s Q4 2021 investor letter. Here is what it said:
“This quarter we are highlighting CVS Health (CVS) as a relative yield example in the Health Care sector. CVS is a vertically integrated health care focused company with leading pharmacy, pharmacy benefits manager (PBM) and managed care businesses. It has more than 10,000 retail pharmacies, along with strong franchises that were acquired in recent years including Caremark, which is the largest PBM in the US that processes over 2 billion adjusted claims annually, and Aetna with 24 million health insurance members. We believe its retail pharmacy network, along with its size and scope in the PBM and managed care businesses provide sustainable competitive advantages.
Our thesis on CVS is that its vertically integrated business model will successfully reduce health care costs for its clients while also accelerating long-term earnings growth. CVS management believes that when retail customers use both CVS pharmacy benefits and medical insurance, their medical costs decline 3-6% over a three-year period by reducing hospitalizations and emergency room visits. This cost savings should help retain and grow clients while lowering health care costs.”
2. Verizon Communications Inc. (NYSE:VZ)
AlphaCrest Capital’s Stake Value: $17.246 million
Number of Hedge Fund Holders: 69
The largest wireless carrier in the United States, Verizon Communications Inc. (NYSE:VZ), generated a revenue of $133.6 billion in 2021. The company is one of the leading 5G providers in the world.
ClearBridge Investments published its Q4 2021 investor letter, which mentioned Verizon Communications Inc. (NYSE:VZ). Here is what it said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”
1. Lowe’s Companies, Inc. (NYSE:LOW)
AlphaCrest Capital’s Stake Value: $18.686 million
Number of Hedge Fund Holders: 65
Lowe’s Companies, Inc. (NYSE:LOW) is a major home improvement retail company. Lowe’s Companies, Inc. (NYSE:LOW) currently has more than 2,000 locations across the United States and Canada.
Perishing Square Capital Management published its Q4 2021 investor letter where Lowe’s Companies, Inc. (NYSE:LOW) was mentioned. Here is what it said:
“Lowe’s is a high-quality business with significant long-term earnings growth potential
Supportive macroeconomic backdrop
-Aging housing stock, lack of new inventory, robust home equity values, and unprecedented pro project backlog
-COVID-19 causing millennials to enter the housing marketPositioned to grow EPS largely independent of market conditions
-Idiosyncratic revenue opportunities driving share gains
-Self-help initiatives catalyzing operating margin expansion
-Buybacks representing ~8% of current market capitalization planned for 2022Multi-year business transformation with substantial earnings upside
-Margin target of 13% has substantial upside; Home Depot at ~15.3% and increasing
-Potential to generate high-teens EPS growth over the next several years.Lowe’s continues to trade at a significantly discounted P/E multiple relative to Home Depot despite materially higher prospective EPS growth. LOW’s share price including dividends increased 63% in 2021 and has decreased 10% year-to-date in 2022.”
You can also take a look at Jim Cramer Recommends These 10 Stocks For Recession and 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin.
