It’s the first day of the new trading week and all three index futures are in the green as investors remain bullish on future corporate earnings growth and central bank support. Among the stocks in the spotlight on Monday are Tesla Motors Inc (NASDAQ:TSLA), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), Zoetis Inc (NYSE:ZTS), and Suncor Energy Inc. (USA) (NYSE:SU). Let’s take a closer look at why these five stocks are making headlines and see how the elite funds in our database are positioned in them.
At Insider Monkey, we track around 765 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).
Musk To Reveal His Master Plan
Although Tesla Motors Inc (NASDAQ:TSLA) has been beset by a semi-automated driving controversy recently and the company’s planned merger with SolarCity Corp (NASDAQ:SCTY) looks more distant, Elon Musk isn’t fazed. Tesla’s CEO tweeted the following yesterday:
“Working on Top Secret Tesla Masterplan, Part 2. Hoping to publish later this week.”
Given Tesla’s huge potential future market, investors will no doubt want to the plan Mr. Musk has to guide his company to the promised land of profit and returns. If the master plan is rich on doable details, Tesla shares could see sentiment improve. Of the 766 elite funds that we track, 39 of them owned $1.08 billion of Tesla Motors Inc (NASDAQ:TSLA) shares in aggregate, which accounted for 3.60% of Tesla’s float on March 31. Those figures were sharply up from 29 funds with $837.44 million in holdings on December 31.
Amazon Prepares for Prime Day
Although July 12 isn’t an official holiday like Christmas or Thanksgiving, Amazon.com, Inc. (NASDAQ:AMZN)‘s Prime Day could very well deliver the same results for the company if Amazon succeeds in making splurging on e-commerce items a habit for millions of shoppers. Amazon raked in between $375 million and $400 million in sales on Prime Day last year and experts estimate that the e-commerce giant will double that on tomorrow’s Prime Day. It’s hoped the deals will draw new shoppers to Amazon.com, creating more sustainable revenue growth for years to come. Investors are certainly expecting good things from Jeff Bezos and Co., given Amazon shares are trading at their all-time high. 133 elite funds in our system owned shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of March, down by eight funds quarter-over-quarter.
On the next page we examine why Alphabet Inc, Zoetis Inc, and Suncor Energy are turning heads this morning.