The shift away from technology could open the door for hedge funds to buy stocks, although it doesn't seem to be based on the fickle valuations of some innovators. Basically, it may be time to think about chasing money.
according to Reuters Investors sold off tech stocks in record time, according to the report. Not only that, but they poured money into investment-grade bonds and cash equivalents earlier this month. This is from Bank of America, citing the following data: EPFRprovides fund flow and asset allocation information.
Certainly, the message here is not to cause panic. However, with the stock prices of technology companies soaring, it might be time to take a trim. When volatility occurs, the effects can be rapid and severe. You can use the funds you acquire to look at stocks that hedge funds are buying instead.
ExxonMobil (XOM)
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It may be an old industry, but exxon mobil (New York Stock Exchange:XOM) is still a powerhouse. That's largely due to the underlying scientific reality. There are few energy sources that allow control over the density of hydrocarbons. After all, large dogs understand this point very well. This is one of the stocks hedge funds are buying.
According to data from HedgeFollow, major institutions bought $9.42 billion worth of XOM stock in the fourth quarter of last year. The largest acquisition was Fisher Asset Management, purchased $1.22 billion worth of stock.next state street (New York Stock Exchange:STT) $765.04 million, followed by black rock (New York Stock Exchange:BLK) $544.59 million.
Another factor to consider is passive income. The company's future dividend yield is currently 3.36%. Furthermore, the dividend payout ratio is very reasonable at 41.39%. Additionally, approximately 63% of XOM stock investors are institutional investors, which provides stability.
Analysts rate ExxonMobil a “moderate buy,” with a price target of $125.31. The upside price target has risen to $140, making it one of the more attractive stocks for hedge funds to buy.
Visa (V)
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To be fair, visa (New York Stock Exchange:V) features many elements of technological innovation, particularly in the software sector. Still, the company essentially specializes in financial services, specifically payment cards. Given that Americans have taken on record amounts of debt, it has to be said that V stock is more risky. Still, it's certainly one of the stocks that hedge funds are buying.
According to HedgeFollow, large investors acquired $7.5 billion worth of Visa stock in the fourth quarter. The largest investor was State Street, with claims up to $461.37 million. BlackRock was next with $375.5 million. The third place was Epoch Investment Partnerswhich recorded $267.35 million.
Well, Visa didn't really energize the board last year. However, it beat his earnings per share in each of the past four quarters. Overall, the average positive expected return was 3.45%. In the first quarter of 2023, he had the biggest surprise of 5%. Analysts expect Visa to report EPS of $9.92 on revenue of $35.85 billion in fiscal 2024.
Last year, the company had revenue of $29.78 billion and EPS of $8. Coupled with the near-unanimous buy rating, Visa looks to be doing well.
UnitedHealth Group (UNH)
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As a major healthcare company, united health group (New York Stock Exchange:UNH) is a far cry from the wild swings of technology-oriented securities. According to his public profile, UnitedHealth operates through his four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The company is essentially a one-stop shop for healthcare-related services. It's boring, but it's also one of the stocks that hedge funds are buying.
According to HedgeFollow, large investors acquired $7.39 billion worth of UNH stock during the fourth quarter.The biggest investor is Jenison Associates LLC, is raking in $616 million. Next up was the usual suspect, State Street, with $562.45 million. finally, Cube Research & Technologies The top three finished with $324.48 million.
Some institutional investors may be paying attention to UnitedHealth's forward yield of 1.52%. Although not the most generous yield, his dividend payout ratio is 30.55%. Moreover, UnitedHealth is one of the most relevant companies. Analysts expect the company to report EPS of $27.77 in fiscal 2024 and revenue of just over $401 billion.
Last year's EPS was $25.12 and revenue was $371.62 billion. Experts rate the stock as a strong buy, with a price target of $591.29.
Eli Lilly (LLY)
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Another healthcare giant Eli Lilly (New York Stock Exchange:Lily) discovers, develops and markets human medicines worldwide. The company offers treatments for a variety of conditions and diseases, including obesity, diabetes, rheumatoid arthritis, and neuropathic pain. Since the beginning of this year, LLY stock has increased his 30% in stock price. Over the past 52 weeks, it has increased by nearly 133%.
With statistics like these, it's no wonder LLY ranks among the stocks hedge funds are buying. In the fourth quarter, institutional investment inflows into Eli Lilly totaled $6.54 billion.The biggest investor is vanguard group, purchased $579.97 million worth of shares. The second place was Citadel Advisors 289.11 million dollars. To summarize the top three, jane street group 233.37 million dollars.
For the current fiscal year, analysts expect Eli Lilly to report EPS of $11.12 and revenue of $36.84 billion. Last year, the company posted earnings of $5.62 per share on revenue of $30.32 billion.
Experts consider LLY a strong buy, with an average price target of $830.67. Notably, his cap target is $1,000, suggesting almost 30% upside room.
JPMorgan Chase (JPM)
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One of the largest and leading companies in the financial services sector, JP Morgan Chase (New York Stock Exchange:J.P.M.) operates through four segments: Consumer and Community Banking (CCB), corporate and investment banks (CIB), commercial banks (C.B.) and Asset & Wealth Management (AWM). JPM stock has risen about 16% since trading began in January. Since 2019, it has increased by nearly 57%.
Again, considering performance statistics like this, it's no surprise that JPM is one of the stocks that hedge funds are buying. In the final quarter of last year, major investors poured $6.37 billion into JPMorgan stock. State Street represented the most optimistic institutional investor, purchasing the company for approximately $503 million. To summarize the top three, Arrow Street Capital BlackRock had $447.8 million and $358.34 million, respectively.
One of the attractive factors about JPM stock is its forward dividend yield of 2.34%. Although the yield is not very high, the dividend payout ratio is 25.26%. That's about as reliable as you can get.
Overall, analysts have a consensus rating for JPM as a Moderate Buy, but have set a modest (downside) price target of $196.50. However, the upper bound prediction is $221.
Veralto (VLTO)
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It is listed under the Industrial sector, specifically Pollution and Processing Control. Veralt (New York Stock Exchange:VLTO) provides water analysis, water treatment, marking, coding, packaging and color services worldwide. The company operates through his two segments: Water Quality (WQ) and Product Quality and Innovation (PQI). Since the beginning of the year, VLTO stock has increased 11% in market value. It's up almost 12% over the past 52 weeks.
Given the broader relevance of the business, Vellert gives an interesting idea of what stocks hedge funds are buying. It's as far away from artificial intelligence-related tech stocks as possible. In the last quarter of 2023, total institutional investor capital inflows reached his $6.1 billion. Vanguard Group led the way, with a total purchase price of $2.16 billion.State Street acquires $730.24 million worth of stock, followed by alliance bernstein (New York Stock Exchange:AB) $382.16 million.
For the current fiscal year, analysts expect EPS of $3.29 and revenue of $5.14 billion. His EPS for the company in 2023 was his $3.19 and revenue was $5.02 billion.
Coverage experts consider VLTO a Moderate Buy with an average price target of $92.43.
Newmont (NEM)
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Interesting idea about the stocks hedge funds are buying. Newmont (New York Stock Exchange:Nemu) is part of Metals and Mining. Specifically, we are engaged in gold production and exploration. Additionally, Newmont explores for copper, silver, zinc and lead. In addition to its operations in North America, it also features projects across multiple countries, including Argentina and Australia.
Since the beginning of this year, NEM has lost about 16% of its stock value. For institutional investors, who may believe that inflation could be stronger than expected, this looks like an aggressive bet. Either way, NEM stock saw $5.18 billion worth of institutional investor inflows in the fourth quarter. Vanguard held $1.42 billion worth of shares and represented the top buyer. BlackRock came in second with $1.03 billion, followed by Van Eck Associates 731.09 million dollars.
Notably, Newmont offers a forward yield of 2.92%, even though its dividend payout ratio is an impressive 180.33%. Analysts expect his EPS to be $2.60 in 2024 with sales of $21.86 billion. Last year, EPS was $2.19 and revenue was $16.03 billion.
Analysts rate the stock a moderate buy with an average price target of $43.32, suggesting upside potential of more than 25%.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
