It’s a good day to be a bull on Wall Street as all three indexes are well in the green and the S&P 500 is near record highs.
Among the stocks trending in today’s sea of optimism are Best Buy Co Inc (NYSE:BBY), J M Smucker Co (NYSE:SJM), Monsanto Company (NYSE:MON), Amazon.com, Inc. (NASDAQ:AMZN), and Toll Brothers Inc (NYSE:TOL). Let’s take a closer look at the latest concerning each stock and see how hedge funds are positioned in them.
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Best Buy Spikes on Earnings
Best Buy Co Inc (NYSE:BBY) shares are 15% in the green today after the electronics retailer reported better-than-expected second quarter earnings. For the time period, Best Buy earned $0.57 per share on revenue of $8.53 billion, toppling estimates of $0.43 per share and $8.4 billion. Comparable-store sales rose by 0.8% year-over-year and management raised its third quarter EPS outlook to $0.43-to-$0.47, which neatly envelops the analyst estimate of $0.45 per share. Of the 749 hedge funds we track that filed 13F’s for the June 30 reporting period, 29 of them owned shares of Best Buy Co Inc (NYSE:BBY) at the end of June, up by one fund from the end of March.
Smucker’s Results Come in Below Expectations
J M Smucker Co (NYSE:SJM) shares have retreated by over 8% in morning trading after the food manufacturer reported first quarter of fiscal year 2017 earnings of $1.86 per share on revenue of $1.82 billion. Although J M Smucker’s earnings beat estimates by a healthy $0.12 per share, its revenue missed the mark by $70 million and fell by 6.7% year-over-year, mostly due to the impact of the divested U.S. canned milk business and price declines. Management’s outlook was stable on the earnings front at least, with expectations of fiscal year 2017 EPS of $7.60-to-$7.75 per share. The number of funds in our database with J M Smucker Co (NYSE:SJM) holdings rose by three quarter-over-quarter to 30 as of the end of June.
On the next page, we’ll take a closer look at what’s happening with Monsanto, Amazon, and Toll Brothers.