#3 Adobe Systems Incorporated (NASDAQ:ADBE)
– Shares Owned by Breton Hill Capital (as of March 31): 17,550 shares
– Value of Holding (as of March 31): $1.65 million
Despite seeing a greater than 25% rally since mid-February, Adobe Systems Incorporated (NASDAQ:ADBE)’s stock is still trading in the red for 2016. On March 17, the company reported its second quarter results for fiscal year 2016, declaring EPS of $0.66 on revenue of $1.38 billion, which topped analysts’ expectations of EPS of $0.61 on revenue of $1.34 billion. Investors were particularly pleased with the growth displayed by the company’s Creative Cloud business, which had subscriptions revenue grow by 12% year-over-year and service and support revenue rise by 37%. Adobe Systems Incorporated (NASDAQ:ADBE) recently received a lot of bad publicity after reports of malware entering its Flash Player software started emerging. However, the news didn’t have any material impact on the company’s stock. On April 12, analysts at FBR & Co. reiterated their ‘Market Perform’ rating on the stock, but upped their price target on it to $115 from $110. Billionaire Ken Griffin‘s Citadel Investment Group upped its stake in Adobe Systems Incorporated by 16% to 3.72 million shares during the fourth quarter.
#2 Eaton Corporation, PLC Ordinary Shares (NYSE:ETN)
– Shares Owned by Breton Hill Capital (as of March 31): 100,859 shares
– Value of Holding (as of March 31): $6.31 million
Among the stocks covered in this article, Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) has seen the largest gain so far this year, of 19%. Despite this spectacular rise, the stock currently sports an attractive annual dividend yield of 3.64% owing to the $0.57 per share quarterly dividend the company currently pays out. Moreover, analysts believe that the stock can rise significantly from here due to its low forward P/E of 13.78 and Eaton Corporation, PLC Ordinary Shares (NYSE:ETN)’s plans to buy back $2 billion worth of shares over the next two years. According to the company’s financial results for fiscal year 2015, it managed to reduce its debt burden by $1 billion. On April 7, analysts at Morgan Stanley upped their price target on the stock to $68 from $63, which represents a potential upside of 8.66% from the stock’s price. Billionaire Cliff Asness‘ AQR Capital Management increased its stake in Eaton Corporation by 81% to 555,709 shares during the fourth quarter.
#1 AbbVie Inc (NYSE:ABBV)
– Shares Owned by Breton Hill Capital (as of March 31): 112,727 shares
– Value of Holding (as of March 31): $6.44 million
Amid a massive slump in the biotech sector this year, AbbVie Inc (NYSE:ABBV) has emerged as one of the best performing stock in the sector by trading flat year-to-date. At the end of 2015, 70 of the more than 800 hedge funds covered by us had ownership in AbbVie Inc (NYSE:ABBV), including Samuel Isaly‘s OrbiMed Advisors, which owned nearly 7.45 million shares of the company. Since Humira accounts for over 60% of the company’s sales and several of AbbVie’s peers are trying to launch a biosimilar of the drug, some analysts and investors have recently raised concerns about the company’s growth prospects going forward. However, AbbVie believes that Humira biosimilars won’t hit the market until at least 2022 and that by then, its revenue will be less reliant on Humira. In the past few quarters, the company has been investing heavily in R&D, owing to which it currently boasts a strong drug pipeline. On April 11, the FDA approved ‘Venclexta’, a drug developed by AbbVie for the treatment of patients with chronic lymphocytic leukemia (CLL) who suffer from 17p deletion.