Volatility has increased as all three indexes have trended lower. As of late morning trading, the Dow Jones is down by almost 140 points, while the S&P and NASDAQ are both off by more than 0.7%.
Among the stocks commanding attention include Wynn Resorts, Limited (NASDAQ:WYNN), JinkoSolar Holding Co., Ltd. (NYSE:JKS), JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), Sherwin-Williams Co (NYSE:SHW), and The Valspar Corp (NYSE:VAL). Let’s examine why traders are focused on each stock and analyze hedge fund sentiment towards them.
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).
Wynn Resorts, Limited (NASDAQ:WYNN) is in the spotlight after David Bain of Aegis upgraded the stock to ‘Buy’ from ‘Hold’ and upped his target price to $121 from the previous $95. Bain thinks the probability of upward revisions by the Street for Wynn’s Macau segment has increased. The analyst also likes how Wynn has exposure to the VIP and high-end of the market. Of the 742 elite funds we track, 33 funds owned $1.78 billion of Wynn Resorts, Limited (NASDAQ:WYNN) and accounted for 20.20% of the float on December 31, versus 38 funds and $2.25 billion respectively on September 30.
JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) and JinkoSolar Holding Co., Ltd. (NYSE:JKS) are each in the red as the broader market and Canadian Solar Inc. (NASDAQ:CSIQ)’s earnings results weigh on both stocks. For its fourth quarter, Canadian Solar missed both earnings and revenue estimates and the company guided for lower first quarter sales as well. As a result, Canadian Solar is down by almost 10% while JinkoSolar is off by 4% and JA Solar has inched lower by 0.6%. Given that solar is a notoriously volatile sector, JinkoSolar and JA Solar could also show substantial movements over the coming weeks ahead in either direction. 7 and 5 funds that Insider Monkey tracks were long JinkoSolar Holding Co., Ltd. (NYSE:JKS) and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) at the end of Q4.
On the next page, we take a closer look at Sherwin-Williams Co, and The Valspar Corp.