#5 ExxonMobil Holdings Corporation (NYSE:XOM)
Number of Hedge Fund Investors: 96
Stock Price When Gemini Bought: $158.25
Today’s Price: $178.23
ExxonMobil is up 11.8% since Gemini bought it, according to Rallies data as of Oct. 22. It makes up 8.1% of the portfolio. Exxon said earlier this month that refining would lift its third-quarter profit, and third-quarter results are due on Oct. 30. The stock touched a 52-week high on Oct. 22. A fund letter we covered argued that Exxon would do even better for investors if stagflation hits. Check the full letter here.
Bears say the stock is up about 50% this year, and much of that rests on a Middle East premium in oil prices. If tensions ease and crude falls, investors may pay a lower multiple for Exxon’s earnings. Analysts already expect earnings to slip each year from 2027 through 2030, and a weak report on Oct. 30 could hit a stock priced at a premium.
#4 Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Investors: 100
Stock Price When Gemini Bought: $433.22
Today’s Price: $443.85
Intuitive Surgical is up 2.2% since Gemini bought it, according to Rallies data as of Oct. 22. It makes up 11.7% of the portfolio. Intuitive Surgical makes the da Vinci robotic systems that surgeons use for minimally invasive procedures. The company reported third-quarter results on Oct. 20 that beat estimates for revenue and adjusted earnings per share, and it narrowed its full-year procedure growth forecast to 14% to 15%. Investors focused on margin pressure, a litigation settlement and planned price cuts on instruments. The stock rose 3.7% on Oct. 22. Jim Cramer has told viewers to buy Intuitive Surgical every time the stock sells off. See what else Cramer said here.
Bulls say Intuitive Surgical’s strength sits in the robots already installed in hospitals. In the recently reported quarter, instrument and accessory revenue rose 18% and service revenue rose 22%. The company is planning price cuts. Bulls think the planned price cuts will widen its customer base. The cuts focus on common, high-volume procedures such as hernia repair, where cost keeps many hospitals from using a robot, and about 1 million hernia repairs happen in the U.S. each year. After early pricing programs, customers in Germany, the U.K., India and Japan expanded their use beyond urology and cancer surgery. Management said wider use is worth more than the revenue lost on each procedure, and the payoff should build over time, with little effect in 2027.
#3 ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Investors: 115
Stock Price When Gemini Bought: $93.24
Today’s Price: $157.00
ServiceNow is up 68.7% since Gemini bought it, the best result in the portfolio, according to Rallies data as of Oct. 22. It makes up 9.4% of the portfolio. ServiceNow sells cloud software that helps companies automate IT, HR and customer service work. The stock gained 10% in the month through Oct. 20, and ten firms raised their price targets ahead of third-quarter results on Oct. 28. The stock also dropped 4.4% in one day this month when enterprise software sold off on worries about AI financing.
Back in July, the stock was down about 28% this year on fears that AI would hurt software, and some value investors called that a buying setup. Read what the bulls argued here.
ServiceNow is down about 16% over the past year amid fears that AI will make software companies obsolete, but the company is changing and bulls are hopeful. The new model is how ServiceNow charges customers. For years it charged a fee for each employee seat, so its revenue grew only as customers added more people to the software. Now it also charges for “assists,” each one a unit of work its AI completes. Bulls like this because revenue grows with how much customers use the AI, and a single AI agent can do the work of many people. If AI means fewer people use the software, the old seat model would have cut ServiceNow’s revenue. The assist model pays ServiceNow more as AI takes on more work.
