In this article, we will list the Top 5 Stocks to Buy According to Ariel Investments. Please visit Top 10 Stocks to Buy According to Ariel Investments if you would like to see the extended list and the methodology behind it.
5. Envista Holdings Corporation (NYSE:NVST)
Number of Hedge Fund Holders: 41
Ariel Investments Equity Stake: $275.61 Million
Envista Holdings Corporation (NYSE:NVST) is one of the top stocks to buy according to Ariel Investments. On June 11, Barclays reiterated an Overweight rating on Envista Holdings Corporation (NYSE:NVST) but lowered the price target to $32 from $34.
According to the research firm, Envista Holdings’ end markets continue to stabilize. Consequently, it tweaked its estimates to reflect the first quarter report. During the quarter, the company delivered growth across all major businesses, driven by customer engagement and new product commercialization. The company’s 9.5% core revenue growth translated into 25% adjusted EBITDA growth and 50% earnings-per-share growth.
Buoyed by impressive first-quarter momentum, Envista Holdings reiterated its full-year guidance, with sales expected to grow between 2% and 4% and adjusted EBITDA between 7% and 13%. Envista Holdings Corp expects full-year adjusted diluted earnings per share to come in between $1.35 and $1.45 a share.
Envista Holdings Corporation (NYSE:NVST) is a global medical technology company that develops, manufactures, and markets dental products and equipment. Spun off from Danaher Corporation, they manage a portfolio of over 30 trusted brands, including Nobel Biocare, Ormco, DEXIS, and Kerr.
4. Sphere Entertainment Co. (NYSE:SPHR)
Number of Hedge Fund Holders: 2
Ariel Investments Equity Stake: $289.08 Million
Sphere Entertainment Co. (NYSE:SPHR) is one of the top stocks to buy according to Ariel Investments. On June 18, Benchmark reiterated a Buy rating on Sphere Entertainment (NYSE:SPHR) and raised the price target to $175 from $155.
The price target hike comes amid expectations that the company is well positioned to deliver a solid second quarter, driven by strength in The Wizard of Oz at Sphere. Recent ticket sales disclosures have already confirmed that The Wizard of Oz is transitioning out of the hyper-growth phase. Instead, it has moved to a phase of normalized operating cadence. That’s in part because incremental ticket revenue moderated to $1 million per day between February and early May from $1.25 million between January and February.
In addition, the company is increasingly capitalizing on healthy concert demand and growing brand activity. Concert demand in the first half of the year was supported by Anyma’s sold-out run and strong ticket sales for Phish. The research firm has also touted the ongoing momentum of Exosphered advertising.
Sphere Entertainment Co. (NYSE:SPHR) is a live entertainment and media company. It operates the technologically advanced Sphere venue in Las Vegas, producing immersive shows and hosting top-tier concerts. Additionally, the company owns MSG Networks, which broadcasts regional sports and entertainment programming in the New York market.
3. Jones Lang LaSalle Incorporated (NYSE:JLL)
Number of Hedge Fund Holders: 42
Ariel Investments Equity Stake: $311.71 Million
Jones Lang LaSalle Inc (NYSE:JLL) is one of the top stocks to buy according to Ariel Investments. On June 4, Jones Lang LaSalle Inc (NYSE:JLL) confirmed it has secured an $870 million senior loan for Four Seasons Private Residences Lake Austin.
The company, alongside co-advisors Cobalt Equities and Adelaide Real Estate, represented Austin Capital Partners and Lincoln Property Company in arranging loans for the ultra-luxury residential development in Austin, Texas. Phase 1 of the Four Seasons Private Residence development is to deliver private residences and 28 villa lots, backed by world-class amenities spanning 100,000 square feet. It will also feature a private lakefront clubhouse.
According to Jones Lang LaSalle, the $870 million senior loan arrangement underscores the strength of Austin’s luxury residential market and its unique value proposition. Consequently, the merger of an irreplaceable lakefront location, Four Seasons branding, and world-class amenities will result in an unparalleled offering.
Jones Lang LaSalle Incorporated (NYSE:JLL) is a leading global professional services firm that specializes in commercial real estate and investment management. The Fortune 500 company helps clients buy, build, occupy, manage, and invest in properties like offices, retail spaces, industrial warehouses, hotels, and data centers.
2. OneSpaWorld Holdings Limited (NASDAQ:OSW)
Number of Hedge Fund Holders: 15
Ariel Investments Equity Stake: $354.17 Million
OneSpaWorld Holdings Limited (NASDAQ:OSW) is one of the top stocks to buy according to Ariel Investments. On June 18, Jefferies analyst Randal Onik reiterated a Buy rating on OneSpaWorld Holdings Limited (NASDAQ:OSW) and raised the price target to $35 from $31.
The bullish stance and price target underscore the analyst’s confidence that OneSpaWorld Holdings offers highly visible revenue growth with minimal risk. That’s in part because the company’s maiden voyages have sold out months ahead. Its new build pipeline is scheduled for 5 years, with 24 new ships planned for 2026-2030.
The analyst also touted the company’s multi-year fleet-wide exclusive contracts, with a five-year new-build pipeline. OneSpaWorld Holdings operates under long-term fleet-wide exclusive contracts with cruise lines.
The research firm has also echoed the company’s position in the cruise industry and opportunities in the wellness services market. Given the company’s role as a provider of outsourced maritime wellness services, Jefferies remains bullish about its sales growth, ship-level productivity, and cash conversion.
OneSpaWorld Holdings Limited (NASDAQ:OSW) is one of the largest health and wellness service companies in the world. It operates premium health, wellness, fitness, and beauty centers and spas. They primarily partner with major cruise lines and destination resorts globally to offer a comprehensive suite of personal care and wellness services.
1. Madison Square Garden Entertainment Corp. (NYSE:MSGE)
Number of Hedge Fund Holders: 55
Ariel Investments Equity Stake: $359.68 Million
Madison Square Garden Entertainment Corp. (NYSE:MSGE) is one of the top stocks to buy according to Ariel Investments. On June 9, Madison Square Garden Entertainment Corp. (NYSE:MSGE) entered into a non-binding agreement with Penn Transformation Partners for the development of the New York Penn Station.
Under the terms of the agreement, Madison Square Garden will remain fully operational at all times during construction. The agreement also paves the way for the transfer of the Infosys Theater at MSG to the master developer. The theater transfer and the broader Penn Station development are subject to further negotiation.
The MOU follows the Trump administration’s selection of a design for a reimagined Penn Station that would leave Madison Square Garden at its current location. However, the design will demolish the 5,000-seat Infosys theater to pave the way for the construction of a grand new station entrance on Eighth Avenue. The plan will allow natural light and extra space into Penn by constructing a multi-level, glass-encased podium.
Madison Square Garden Entertainment Corp. (NYSE:MSGE) owns and operates iconic live entertainment venues, books major touring acts and sporting events, and produces the annual Christmas Spectacular Starring the Radio City Rockettes.
While we acknowledge the potential of MSGE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSGE and that has 100x upside potential, check out our report about the cheapest AI stock.
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