Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Valeant, Oclaro, Time Warner, and More Are in the Spotlight

Crude futures are in the green today as investors look forward to today’s upcoming EIA data dump. Besides energy securities, traders are also closely watching Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Nike Inc (NYSE:NKE), Oclaro, Inc. (NASDAQ:OCLR), AT&T Inc. (NYSE:T), and Time Warner Inc (NYSE:TWX). In this article, let’s analyze why the five stocks are trending and examine elite fund sentiment toward them using the latest 13F data.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Traders are watching Valeant Pharmaceuticals Intl Inc (NYSE:VRX) after Neil Maruoka of Canaccord trimmed his price target on the pharmaceutical giant to $12 per share from the previous $17. Maruoka notes that Bill Ackman’s Pershing Square recent move to sell out of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) gives credence to the thesis of slower growth for the company in the quarters ahead. The divestment of major assets at shareholder friendly prices could also be a challenge. If Valeant can’t grow fast enough or sell its assets at high enough prices, the company’s big debt burden could be a problem.

Follow Bausch Health Companies Inc. (NYSE:BHC)
Trade (NYSE:BHC) Now!

Nike Inc (NYSE:NKE) shares have opened in the green after UBS analyst Michael Beinetti bumped his price target on the sporting giant to $67 from $61. Beinettti thinks Nike’s guidance is conservative and believes the company’s futures orders will stabilize in the third quarter. The analyst has a ‘Buy’ rating on the stock. Of the around 742 top funds we track, 48 funds owned $2.84 billion of Nike Inc (NYSE:NKE) and accounted for 3.40% of the float on December 31, versus 55 funds and $3.72 billion respectively on September 30.

Follow Nike Inc. (NYSE:NKE)
Trade (NYSE:NKE) Now!

Oclaro, Inc. (NASDAQ:OCLR) is almost 4% in the green after Richard Shannon of Craig-Hallum termed the stock’s current levels as a ‘great buying opportunity’. Shannon thinks that trader concerns over Chinese inventory aren’t warranted and that Oclaro is the cheapest in the optical sector, suggesting good risk/reward. Needless to say Shannon has a ‘Buy’ rating on the name. 40 top funds were long Oclaro, Inc. (NASDAQ:OCLR) at the end of the fourth quarter, down one from the previous quarter.

Follow Oclaro Inc. (NASDAQ:OCLR)
Trade (NASDAQ:OCLR) Now!

On the next page, we examine why traders are buzzing about AT&T Inc, and Time Warner Inc.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.