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April 17, 2022

Top analysts say buy stocks like McDonald’s & Tesla

The brand for McDonald’s is noticed on a restaurant in Arlington, Virginia, January 27, 2022.

Joshua Roberts | Reuters

It seems inflation, the spike in oil selling prices and other commodities and geopolitical unrest are influencing just about every business.

Now, the arrival of earnings season delivers a further factor for traders to look at.

Relatively than focusing on the small-expression volatility these situations may well make, traders should to continue to keep a extended-term perspective. Wall Street’s top rated pros are highlighting their favourite stocks for these rocky moments, according to TipRanks, which tracks the greatest-undertaking analysts.

Listed here are 5 shares that have caught analysts’ interest.

Palantir

As nations weigh armed service investing, there could be much more financial investment into massive facts providers like Palantir (PLTR). The program analytics organization has two segments, government and commercial, and creates one of a kind methods for its prospects.

When its growth has been slower than its friends, Palantir stays rewarding and has been continuing to crank out next-gen improvements, having a “route fewer followed” when compared to the common Massive Tech names. At minimum, this is in accordance with Brian White’s latest report for Monness, Crespi, Hardt & Co. (See Palantir’s Possibility Evaluation on TipRanks)

White initiated protection on the inventory with a obtain, and he assigned a price tag concentrate on of $20.

The famous that Palantir has “remained steadfast to its core values, fostering a unique society, and establishing distinctive software package.”

The electronic transformation tale is not a new a single, yet White believes quite a few entities are continue to in their early phases of adequately adopting cloud and big info analytics as their leading priorities.

White wrote that PLTR has “strong earnings advancement, a pioneer status in an rising software package classification, the improvement of software program that disrupts current legacy alternatives… and a significant market place option.”

On TipRanks, White maintains a place at No. 178 out of almost 8,000 analysts. His inventory picks have located accomplishment 64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time, and he has returned an regular of 29.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on each and every.

McDonald’s

Electronic innovations have assisted McDonald’s (MCD) make drive-thru procedures more productive, streamline shipping and delivery capabilities, and drive brand name loyalty by means of its benefits software. The multinational cafe is perfectly poised to continue on delivering returns to shareholders.

Ivan Feinseth of Tigress Money Associates observed that “MCD’s expansion initiatives, including AI-dependent voice buying, digital advertising and marketing, new delivery partnerships, supply chain administration, and ongoing innovation, will carry on to push prolonged-phrase business traits and market share gains.”

Feinseth rated the inventory a purchase, and he declared a selling price concentrate on of $314 per share.

McDonald’s modern partnership with IBM (IBM) is predicted to combine AI tech into its generate-via section, significantly improving upon shopper encounter and allowing for increased buying costs. As for its McDonald’s Application, the increased loyalty system lets details to be awarded to clients for their buys, thus materializing in repeat visits.

The speedy-foodstuff corporation claimed sturdy quarterly benefits in January, printing its optimum at any time total-yr U.S. equivalent retail outlet product sales, driven by a “stellar overall performance by the McRib alongside with solid need for its crispy rooster sandwich,” according to Feinseth.

The analyst anticipates McDonald’s will proceed delivering dividends and repurchasing shares. (See McDonald’s Corp. Dividend Data on TipRanks)

Out of much more than 8,000 monetary analysts, Feinseth is rated as No. 75. He retains a 66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} results rate, coupled with an common return of 29.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on each individual decide on.

Tesla

Tesla (TSLA) not long ago kicked off the opening of its Austin manufacturing facility. The plant has been a prolonged-time coming for several buyers, and it really is predicted by CEO Elon Musk to grow to be the flagship creation web-site of its numerous automobiles, together with the considerably-predicted Cybertruck.

Domestically, the firm is lightyears in advance of its opposition, which have been getting it relatively hard to get their functions up and jogging efficiently, in accordance to Dan Ives of Wedbush Securities. He also expects the Austin and Berlin factories to generate Tesla to deliver 2 million autos by the stop of this calendar year. For context, which is 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} much more than the EV maker did in 2021. Austin will represent a person quarter of this amount of money.

Ives reiterated his buy rating on the inventory, and he maintained his $1,400 price goal.

Describing it as a “high course problem of demand outstripping provide,” Ives mentioned that orders for Tesla Design Ys are backlogged by about a 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} a 12 months. When this is something that presents the corporation with a distinct visibility of its future income, it is not capable to capitalize appropriately if it can not fill the orders. Additional, customers will go elsewhere if they are unable to get their new automobiles. (See Tesla Web-site Traits on TipRanks)

Last but not least, the Berlin plant is intended to select up all of the European deliveries, which until finally not too long ago the Shanghai factory experienced been generating. This program of shipping and delivery autos all around the globe was unsustainable at best and is anticipated to wind down as Berlin ramps up.

Ives is rated No. 332 out of virtually 8,000 specialist analysts. He is accurate when selecting stocks 59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time, and he has returned an regular of 23.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on just about every rating.

CrowdStrike

CrowdStrike (CRWD) is standing out in the cybersecurity business, as the business has been executing nicely on its pipeline and setting up solid purchaser retention ranges.

Jonathan Ruykhaver of Baird just lately claimed on the stock, indicating that “cloud-native architecture, one clever agent, serious-time cloud scale AI, integrated platform, and scalability [are] vital improvements that produce solid competitive moat and limitations to entry.”

Ruykhaver rated the stock a invest in and bullishly elevated his cost goal to $275 from $225.

Stating that CrowdStrike has “no shortage of progress options,” the analyst cited the cybersecurity firm’s execution concerning its merchandise modules manufactured offered to customers. He famous that CRWD has enhanced its sheer sum of modules by above 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} given that it went general public.

This large assortment of offerings presents a sticky ecosystem for its buyers, a paramount quality in these types of a aggressive market. (See CrowdStrike Hedge Fund Action on TipRanks)

Ruykhaver specified that “FalconXDR, Cloud Options, Fusion and log administration” have pushed advancement and led CrowdStrike to a aggressive situation between its peers.

Out of just about 8,000 analysts, Ruykhaver ranks as No. 8. He has been productive when rating stocks 81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time, and he retains an ordinary return amount of 57.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Chewy

Chewy (CHWY) caught a tailwind from the pandemic as persons adopted pets and turned to the online retailer for provides.

Nevertheless, the pandemic and its traits have largely died down around the very last couple of months, and Chewy’s valuation consequently took a strike. Inspite of this, Doug Anmuth of JPMorgan does not believe that the stock’s main organization is any considerably less interesting. In his report, the analyst believes it to be the “premier pure-play pet retailer in the U.S.,” in a “escalating and very appealing classification that is early in the shift on the net.”

Anmuth rated the inventory a obtain and presented a rate focus on of $55.

He foresees expansion for the business in its pharmacy phase, and room for growth internationally. Energetic shopper progress is anticipated by the analyst to ramp up via the conclude of the calendar year and into 2023. Until then, he tasks 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} profits development for the latest fiscal year. (See Chewy Inventory Charts on TipRanks)

Irrespective of these bullish elements, around-term problems continue to mount for Chewy. Inflationary pressures and supply chain constraints continue being unsure and hard to manage. No retailer would like to have its products and solutions unavailable, primarily when its prospects could shop somewhere else.

Gross margins are nevertheless anticipated to expand, “nicely beyond the 25-28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} array w/elevate from new initiatives together with clean & prepared food stuff, health and fitness & wellness like insurance policies, & advertising and marketing, which need to kick in far more in 2023,” Anmuth noted.

Anmuth is ranked as No. 273 out of pretty much 8,000 expert analysts in TipRanks’ databases. He has a accomplishment level of 54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and he returns an regular of 26.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on his ratings.

April 16, 2022

Twitter board adopts ‘poison pill’ after Musk’s $43 billion bid to buy company

Twitter adopted a confined duration shareholder rights system, frequently referred to as a “poison tablet,” a working day right after billionaire Elon Musk available to obtain the firm for $43 billion, the firm announced Friday.

The board voted unanimously to undertake the approach.

Below the new framework, if any person or group acquires helpful possession of at the very least 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Twitter’s fantastic widespread inventory with out the board’s acceptance, other shareholders will be permitted to purchase further shares at a price reduction.

The strategy is set to expire on April 14, 2023.

These types of a move is a typical way to fend off a probable hostile takeover by diluting the stake of the entity eying the takeover.

Elon Musk’s Twitter profile exhibited on a laptop display screen and Twitter emblem shown on a phone display are found in this illustration photograph taken in Krakow, Poland on April 9, 2022.

Jakub Porzycki | Nurphoto | Getty Images

“The Rights System will minimize the chance that any entity, human being or team gains command of Twitter by way of open up marketplace accumulation with out paying out all shareholders an suitable handle premium or with out furnishing the Board adequate time to make knowledgeable judgments and take steps that are in the greatest pursuits of shareholders,” the organization explained in a push launch.

Twitter observed that the rights plan would not prevent the board from accepting an acquisition offer if the board deems it in the greatest interests of the enterprise and its shareholders.

Musk presently owns a more than 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in Twitter as disclosed in a Securities and Trade Fee filing final 7 days. Soon immediately after his stake became general public, Twitter’s CEO introduced strategies for Musk to be a part of the board. But times later, Musk reversed class and decided not to be part of the board after all.

If he experienced joined, Musk would not be allowed to accumulate extra than 14.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of useful possession of the firm’s remarkable widespread stock.

Also on Friday, Bloomberg reported, citing nameless sources, that Twitter brought on JPMorgan to assist reply to Musk’s bid. Twitter had previously been functioning with Goldman Sachs and Musk has been working with Morgan Stanley.

Quite a few outlets such as The New York Submit described Twitter was also fielding interest from Thoma Bravo, even though it’s continue to unsure a bid will materialize, in accordance to sources who spoke to Reuters.

JPMorgan has record with Musk, suing Tesla over a subject associated to his 2018 tweet claiming he experienced “funding secured” to choose the company personal. Tesla afterwards countersued the bank.

JPMorgan, Twitter and Thoma Bravo declined comment.

In a live-streamed job interview at the TED2022 conference in Vancouver on Thursday, Musk laid out his eyesight for making Twitter’s algorithms extra publicly accessible and limiting articles moderation.

He also acknowledged he is “not positive” if he’ll really be able to purchase Twitter, though he mentioned he does have “sufficient property” to fund the offer if accepted. In spite of his fortune, Musk has significantly of his assets tied up in equity in his firms like Tesla, this means he’d probable have to liquidate or borrow in opposition to his belongings to arrive up with a large sum.

But Musk explained “there is” a Approach B if his initial provide to invest in the enterprise and take it non-public, which he referred to as his “very best and final,” is turned down. He declined to supply further more particulars in the TED interview.

On Friday, Twitter’s previous CEO and recent board member Jack Dorsey tweeted that “the genuine situation” is that “as a general public enterprise, twitter has generally been ‘for sale.'”

Subscribe to CNBC on YouTube.

Look at: Twitter, Goldman Sachs, and IBM are some of present-day shares: Professional Market Movers April 14

April 16, 2022

Musk Says He Has the Means to Buy Twitter, but Investors Aren’t So Sure

“A simple identity conflict, it does not disqualify an supply,” Mr. Pascarella explained. “But if they are tying Elon’s personality attributes to the chance of the deal taking place — can you come up with the money, and will the deal basically near — then that can incredibly a lot be taken into thought.”

Mr. Musk is the richest man or woman in the world, with a net worth pegged at very well north of $200 billion. But his prosperity is generally tied up in Tesla inventory. As main executive of Tesla and a single of its greatest shareholders, Mr. Musk owned about a fifth of the electric powered carmaker as of December. But Tesla restrictions its executives to utilizing no much more than 25 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of their stock as collateral for borrowing, and Mr. Musk already has pledged a portion of his Tesla shares for other loans, according to firm filings.

He could theoretically pledge the rest of his suitable Tesla shares to raise adequate funding to purchase Twitter. But Tesla remains a wildly unstable stock, buying and selling among $766 and $1,145 in a issue of weeks — which would give pause to financial institutions looking at lending to Mr. Musk versus his Tesla holdings.

Mr. Musk could also go to financial institutions to help offer the $15 billion to 20 billion in personal debt financing that analysts say the bid demands, which would be added to Twitter’s equilibrium sheet. But Morgan Stanley, the expense bank that is advising Mr. Musk, is not recognised on Wall Road for pulling jointly the sort of significant-scale funding a acquire of Twitter would need.

Morgan Stanley could rope in banking companies with more substantial harmony sheets, like JPMorgan Chase and Bank of America. But a tense bit of background concerning JPMorgan and Mr. Musk could compel the lender to sit it out. Final calendar year, JPMorgan sued Mr. Musk more than a deceptive Twitter write-up in which he claimed to have secured funding for his offer you to just take Tesla private, alleging that it violated the conditions of a agreement concerning the two entities.

JPMorgan declined to comment.

A 3rd option for Mr. Musk is personal fairness. When he contemplated using Tesla personal in 2018, he famously brought in the expert services of Silver Lake, a technological innovation-focused non-public equity organization. Silver Lake presently has a relationship to Twitter. The firm’s co-chief govt Egon Durban joined Twitter’s board in 2020 immediately after a $1 billion investment by Silver Lake.

But there is a catch there, also. When it invested in Twitter, Silver Lake signed an agreement that severely boundaries its means to purchase a lot more than 5 p.c of the corporation. That settlement could hinder its willingness or potential to crew up with Mr. Musk.

April 13, 2022

Why it’s so hard to buy a home right now

Other hurdles include things like a lack of obtainable homes for sale that in good shape the buyer’s requirements, bidding wars, and failing to have plenty of funds for a down payment, in accordance to a new analyze from the Countrywide Association of Realtors and Early morning Consult.

“Document-high residence costs and document-reduced inventory have designed the property buying system exceedingly challenging,” reported Jessica Lautz, NAR’s vice president of demographics and behavioral insights. “Our examine displays that while the inventory crisis is influencing potential potential buyers of each race, just about all home customers concur that house ownership is however an critical component of the American Desire.”

For a growing quantity of folks, even so, the dream of homeownership stays significantly out of get to.

Stock is in close proximity to document lows and the amount of revenue at the far more affordable close of the current market is decreased than very last 12 months mainly because desire is entirely outstripping supply.

There had been only 870,000 properties for sale at the finish of February, in accordance to NAR. And the amount of households obtained that were priced at the sweet location for 1st-time potential buyers — involving $100,000 and $250,000 — dropped by 26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from last yr. At a greater value range — $500,000 to $750,000 — the number of homes enhanced by 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in February from the year in advance of.

Economists level out that much more than a ten years of underbuilding has resulted in low housing supply and the scarcity is even worse at the more economical finish of the marketplace.

“In the present sizzling market, folks who have usually savored homeownership can capitalize on all those gains to understand new alternatives,” reported Bryan Greene, NAR vice president of policy advocacy. “In the meantime, the market becomes progressively unaffordable, and the obstacles larger, for people making an attempt to enter the market.”

Competitiveness remains intense

Between the top road blocks, in accordance to NAR, is acquiring a residence that satisfies the buyers’ anticipations and intense opposition with other consumers.

Jennifer and Thomas Karnes were up versus both difficulties in their look for for a 4-bedroom, two-bath household in the Hampton Roads space of southeastern Virginia. The couple desired to spend much less than $500,000, but ultimately experienced to enhance their spending plan.

“We instructed ourselves we weren’t going to settle from the pretty commencing,” Thomas told Sara Sidner in an job interview for CNN+’s “The Significant Photo.” “Practically within several hours, something’s gone, scooped up and it is off the market.”

They expanded their search to locate more properties in their selling price assortment and eventually saw 35 homes. Each and every visit brought urgent pressure.

“It is really difficult when you walk into a household, sometimes we might only have less than 15 minutes to glance for the reason that there would be a line,” claimed Jennifer.

They made 5 aggressive gives, which include complete value features with deal sweeteners like waiving residence inspections. They even available a single vendor Bitcoin. All of them have been rejected.

“It was just this roller coaster of ‘What can we do?’ ‘What can we give them?’ and the emotional toll of continuing to search and continuing to get rejected is so hard,” explained Jennifer.

Eventually, the few had been unable to come across a residence that satisfied their demands in their selling price array. So they elevated their price range, offering $50,000 over inquiring price tag on a fixer-higher household that was in need of a new roof and windows. That offer — of $750,000 — was acknowledged.

Preserving for a down payment

Acquiring plenty of funds saved for a down payment continues to be a single of the biggest nuts to crack for potential buyers.

What will my monthly mortgage payment be?

About a few-quarters of probable homebuyers are at the moment planning to help save for a down payment, in accordance to the report, which most expected to get in between six months and a few decades.

The median selling price of a solitary loved ones dwelling in February was $363,800, which is up about 32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from 2019, just before small desire prices super-billed the housing market, in accordance to NAR. Meanwhile, the median home earnings in the US is about $67,000.

A customer looking to invest in a median priced dwelling in February, when home loan rates ended up lower than they are now, essential a median household earnings of $88,424 to obtain that residence and profits of $65,328 to even qualify, in accordance to NAR.

That charges a ton of prospective buyers out of the industry. In addition, even effectively-certified purchasers are outbid by people today and buyers who are snapping up houses in all-funds specials.

April 12, 2022

10 Best Micro-Cap Stocks to Buy According to Hedge Funds

In this article, we discuss the 10 best micro-cap stocks to buy according to hedge funds. If you want to read about some more micro-cap stocks, go directly to 5 Best Micro-Cap Stocks to Buy According to Hedge Funds.

Value stocks have been in the limelight as interest rates rise and inflation batters the growth market. However, the discussion around value equities is often hijacked by large and popular companies. Research shows that even though private equity is a solid bet for a healthy investment portfolio, the returns of micro-cap value stocks have outperformed it over the past few years. These micro-cap stocks do not command much attention on social media either as tech-based offerings reign supreme on the internet.

Boston Partners, a capital market company, outlines that in a fifteen-year period between 1995 and 2020, the US Private Equity Index soared by around 716{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, compared to the 740{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rise in the CRSP Equal Weighted Microcap Index over the same period. Both indexes outperformed the returns of the benchmark S&P 500 that was 255{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} between 1995-2020. The amount of institutional capital dedicated to around 8,700 micro-cap stocks tracked by Boston Partners has also shrunk since 2008 even as private equity assets witness a surge in inflows.

Institutional investors like hedge funds have a bias towards large cap stocks like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), but usually do not pay much attention to micro-cap entities. The report by Boston Partners reveals that mutual funds and institutional investors, from both active and passive domains, hold roughly 78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total holdings in the Russell 2000 but only 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the non-Russell 2000 microcap universe.

Even though there are many reasons to invest in micro-cap stocks, the price volatility often associated with smaller companies puts off many investors. Many micro-cap stocks in high-growth domains like artificial intelligence, space, and biotech trade on over-the-counter (OTC) markets as well, which limits their access to a broader marketplace in the United States. However, the returns of these firms, evidenced by the 51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} returns of the Dow Jones Select Micro-Cap Index as of September 2021, is further evidence that these concerns seem out of place given the performance of micro-caps.

Photo by Nick Chong on Unsplash

Our Methodology

These were picked using market capitalizations and growth catalysts. Stocks that have a market capitalization between $50 million and $300 million were preferred for the list. The business fundamentals and analyst ratings of each company are also discussed to provide some additional context.

Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each company.

Best Micro-Cap Stocks to Buy According to Hedge Funds

10. IBEX Limited (NASDAQ:IBEX)

Number of Hedge Fund Holders: 3

IBEX Limited (NASDAQ:IBEX) provides tech-enabled lifecycle experience solutions. Some of these include IBEX Connect, IBEX Digital, and IBEX CX. The three are customer service, customer acquisition, and customer experience solutions respectively. On February 16, the company posted earnings for the second fiscal quarter of 2022, reporting earnings per share of $0.27 and a revenue of around $132 million, up 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-on-year. The board of directors of the firm also recently approved a $20 million share repurchase program.

IBEX Limited (NASDAQ:IBEX) also raised guidance numbers for the rest of the fiscal year in the earnings report. The firm now expects organic revenue growth of 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} against consensus estimates of 7.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Capex guidance was around $35 million.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Schonfeld Strategic Advisors is a leading shareholder in IBEX Limited (NASDAQ:IBEX) with 400,000 shares worth more than $5 million.

At the end of the fourth quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $4 million in IBEX Limited (NASDAQ:IBEX), compared to 4 in the preceding quarter worth $13 million.

Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), IBEX Limited (NASDAQ:IBEX) is one of the stocks that elite investors have on their radar.

9. Huttig Building Products, Inc. (NASDAQ:HBP)

Number of Hedge Fund Holders: 7

Huttig Building Products, Inc. (NASDAQ:HBP) makes and sells building materials and wood products. These include door units, windows, stair parts, roofing, siding, insulation, and other products and services. On March 2, the firm posted earnings for the fourth quarter of 2021, reporting a revenue of more than $230 million, up close to 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to the revenue over the same period last year. The company is presently in the process of reviewing strategic alternatives to boost shareholder value.

Jon Vrabely, the CEO of Huttig Building Products, Inc. (NASDAQ:HBP), noted in the earnings call that “continued growth in demand for residential building products, an elevated pricing environment, and a focus on growing strategic product categories” were some of the factors that led to sales growth for the firm during the fourth quarter and the year overall.

At the end of the fourth quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $40 million in Huttig Building Products, Inc. (NASDAQ:HBP), up from 3 in the preceding quarter worth $15 million.

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Mill Road Capital Management is a leading shareholder in Huttig Building Products, Inc. (NASDAQ:HBP) with 1.7 million shares worth more than $19 million.

8. First Western Financial, Inc. (NASDAQ:MYFW)

Number of Hedge Fund Holders: 8

First Western Financial, Inc. (NASDAQ:MYFW) is a Colorado-based financial holding company. Some of the services it provides include wealth management, private banking, personal trust, investment management, mortgage lending, and institutional asset management. The firm operates a total 18 profit centers, mostly spread across Colorado and Arizona. Last year, the company had merged with Teton Financial Services, the parent company of Rocky Mountain Bank. The combined firm had over $7 billion in assets under management at the time.

Scott Wylie, the CEO of First Western Financial, Inc. (NASDAQ:MYFW), noted during the fourth quarter earnings call that the company had increased book value per share by 116{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} since the initial offering in 2018, with around 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of that increase coming in 2021 alone.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Basswood Capital is a leading shareholder in First Western Financial, Inc. (NASDAQ:MYFW) with 498,053 shares worth more than $15 million.

At the end of the fourth quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $28 million in First Western Financial, Inc. (NASDAQ:MYFW), up from 5 in the preceding quarter worth $20 million.

7. Drive Shack Inc. (NYSE:DS)

Number of Hedge Fund Holders: 8

Drive Shack Inc. (NYSE:DS) operates as a leisure and entertainment firm. It owns and runs golf resorts that comprise around 55 properties spread across nine states in the country. The stock stands to benefit as virus restrictions are lifted across the globe and people return to entertainment centers. The Puttery segment of the firm is expected to lead this boom as Drive Shack plans to have around 15 of these venues running in 2022. The company is also working to expand through borrowed capital not due till 2035.

On March 11, Drive Shack Inc. (NYSE:DS) posted earnings for the fourth quarter of 2021, beating analyst expectations on earnings per share and revenue by $0.01 and $1 million respectively. At the end of the 2021 fiscal year, the firm had almost $60 million cash in hand.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Lansing Management is a leading shareholder in Drive Shack Inc. (NYSE:DS) with 3.2 million shares worth more than $4.6 million.

At the end of the fourth quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $6 million in Drive Shack Inc. (NYSE:DS), up from 7 in the preceding quarter worth $11 million.

6. Ikena Oncology, Inc. (NASDAQ:IKNA)

Number of Hedge Fund Holders: 8

Ikena Oncology, Inc. (NASDAQ:IKNA) operates as a targeted oncology firm. The company focuses on the development of medicines for unmet medical needs. It is presently working on many such projects, including IK-930, an oral small molecule inhibitor of the transcriptional enhanced associate domain, and IK-175, an oral inhibitor of aryl hydrocarbon receptor. On March 17, the firm posted earnings for the fourth quarter of 2021, beating analyst estimates on earnings per share and revenue by $0.59 and $15 million respectively.

On March 17, Credit Suisse analyst Judah Frommer maintained an Outperform rating on Ikena Oncology, Inc. (NASDAQ:IKNA) stock with a price target of $24, highlighting the pipeline progress updates and fourth quarter results in a bullish analysis.

At the end of the fourth quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $153 million in Ikena Oncology, Inc. (NASDAQ:IKNA), the same as in the preceding quarter worth $208 million.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm OrbiMed Advisors is a leading shareholder in Ikena Oncology, Inc. (NASDAQ:IKNA) with 2.9 million shares worth more than $36 million.

In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Ikena Oncology, Inc. (NASDAQ:IKNA) is one of the stocks that institutional investors are monitoring.

Click to continue reading and see 5 Best Micro-Cap Stocks to Buy According to Hedge Funds.

S&P 500 companies hit highest level of analyst ‘Buy’ ratings in more than a decade

U.S. equity markets endured a gnarly first quarter.

All three major indexes logged their worst performance in two years as rising interest rates, geopolitical tensions and supply-chain disruptions dampened investor sentiment. But even against that backdrop, Wall Street pros stayed bullish on stocks.

According to new data from FactSet, analysts had the most Buy ratings on stocks in the S&P 500 as a percentage of their total ratings during February and March in over a decade. Of 10,821 ratings on companies tracked by the benchmark, 57.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} had an investment analyst recommendation to purchase their stock as of March 31, slightly trailing February at 57.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Prior to the surge, the last time the percentage of Buy ratings exceeded 55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at the end of any month was September 2011, at 55.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the firm found.

The optimistic outlook was likely driven by an increase over the past several months in earnings estimates for S&P 500 companies, FactSet’s John Butters points out. Although analysts have slightly tempered their expectations for first quarter earnings, the next three quarters look stronger for companies than strategists had previously anticipated. With high inflation bringing pricing power to firms, many companies in the index are expected to show double-digit revenue growth throughout 2022.

While analysts lowered bottom-up EPS estimates in aggregate for the first quarter (a 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} decrease from $52.21 to $51.83), from year-end 2021 through March 31, they lifted EPS forecasts for the second quarter by 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from $55.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $56.07, by 2.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from $57.82 to $59.23 for the third quarter, and by 3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from $58.31 to $60.59 for the fourth quarter.

Despite the downtick in estimates for the first three months of the year, with higher earnings outlooks for the remaining three quarters, analysts also raised EPS estimates for all of 2022 by 2.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from $223.43 to $227.80.

John Hancock Investment Management Co-chief investment strategist Emily Roland told Yahoo Finance Live recently that the firm continues to see earnings growth estimates move higher over the next 12 months.”

“We know there are companies out there with solid operating leverage and great pricing power that have been able to expand their margins in this period of elevated inflation,” she said. “We’re going to see some pressure on margins, but the corporate fundamental backdrop is there.”

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 6, 2022. REUTERS/Brendan McDermid

Additionally, consensus analysts anticipate the S&P 500 will see a price increase of 16.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to top the 5,000 level over the next 12 months based on the difference between the bottom-up target price and the closing price for the index as of March 24, per FactSet data. The bottom-up target price is calculated by aggregating median target price estimates for all companies (based on company-level estimates submitted by industry analysts). The bottom-up target price on the S&P 500 based on this computation was 5278.60, based on figures as of March 24, 16.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} above the closing price of 4520.16 that day.

Winners and losers

Looking at ratings at the sector level, stocks in the Energy, Information Technology, and Communication Services categories had the highest percentages of Buy ratings at the end of the quarter at 66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, 64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and 62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, at the end of the quarter, according to the FactSet analysis.

On the contrary, the fewest Buy ratings were given to stocks in Consumer Staples at only 41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and Utilities, at 49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, as of the end of March. The Consumer Staples sector also had the highest percentage of Hold ratings, 48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and the highest percentage of Sell ratings, 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

At the company level, Signature Bank (SBNY) , Alexandria Real Estate Equities, Inc. (ARE), and Assurant, Inc. (AIZ) had Buy ratings across the board at 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Alphabet Inc. (GOOG) followed suit at 98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for its Class C shares and 96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for its Class A shares. Buy ratings comprised 96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, of total analyst ratings on Amazon Inc. (AMZN) and Microsoft (MSFT).

The biggest loser in the category was Consolidated Edison (ED) with only 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its ratings reflecting analysts recommending buying the company’s stock, and Sell ratings representing 59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Clorox Company (CLX) took second place on the lowest share of Buy ratings, at only 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and 53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} recommending investors sell.

“In this environment, with valuation expansion potentially tough to come by due to rising interest rates and high inflation, earnings take on more importance,” said LPL Financial equity strategist Jeff Buchbinder in a recent note. “The good news is corporate America is in excellent shape — earnings estimates are higher in 2022 now than they were at the start of the year, which is no small feat.”

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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