Billionaire Steven Cohen Collects These 3 “Strong Buy” Stocks
Last week, the NASDAQ fell below 13,200, bringing the net loss from its all-time high, reached earlier this month, to 6.4%. If this trend continues, the index will enter correction territory, a 10% loss from its peak. So what exactly is going on? At bottom, they are mixed signals. The COVID-19 pandemic is beginning to fade and the economy is beginning to reopen – strong positives that should boost markets. But an economic restart brings inflationary pressures with it: more people working means more consumers with money in their pockets, and the massive stimulus laws passed in recent months, and the law that is in the pipeline in Congress now, totaling $ 1.9 trillion. , have put additional funds into people’s wallets and liquidity in the economy. There is pent-up demand and people with money to spend, and both will work to drive prices up. We can see an effect of all this in the bond market, where the 10-year Treasury is yielding 1.4%, close to a one-year high, and has been trending up in recent weeks. However, this may be a case of jumping the gun, as Federal Reserve Chairman Jerome Powell said in his Senate testimony that he is not considering a measure to increase interest rates. In other words, these are confusing times. For those who feel lost in all the fog of the stock market, investment gurus can offer a sense of clarity. Nobody but billionaire Steven Cohen. Cohen’s investment firm, Point72 Asset Management, is based on a strategy that involves investments in the stock market, as well as a more macro approach. This same strategy has cemented Cohen’s status as a highly respected investment powerhouse, with the guru making $ 1.4 billion in 2020 thanks to a 16% gain on Point72’s top hedge fund. With this in mind, our focus was on Point72’s most recent 13F presentation, which reveals the shares the fund acquired in the fourth quarter. Looking at three tickers in particular, the TipRanks database revealed that each of them has gained a “Strong Buy” analyst consensus and has significant upside potential. Array Technologies (ARRY) The first new position is at Array Technologies, a “green technology” company that provides tracking technology for large-scale solar energy projects. It is not enough to deploy enough solar photovoltaic collection panels to power an energy company; the panels have to follow the sun across the sky and take into account seasonal differences in its path. Array offers solutions to these problems with its DuraTrack and SmarTrack products. Array boasts that its tracking systems will improve the lifetime efficiency of solar panel projects and that its SmarTrack system can increase energy production by 5% overall. The company has clearly impressed its clients, having facilities in 30 countries, on more than 900 utility-scale projects. President Biden is expected to take executive action to push forward green economic policy at the expense of the fossil fuel industry, and Array could potentially benefit from this political environment. The shares of this company are new to the markets, having made its IPO in October of last year. The event was described as the ‘first major solar initial public offering’ in the US for 2020, and it was a success. The shares opened at $ 22 and closed at $ 36 for the day. The company sold 7 million shares, raising $ 154 million, while Oaktree Capital put another 40.5 million shares on the market. Oaktree is the investment manager that had a majority stake in the company since 2016. Array fans include Steven Cohen. With 531,589 shares in the fourth quarter, Point72’s new ARRY position is worth more than $ 19.7 million at current valuation. Guggenheim analyst Shahriar Pourreza also appears confident in the company’s growth prospects, noting that the shares appear undervalued. “Renewable energy companies have experienced a large influx of capital as a result of the ‘blue wave’ and the control of the Democrats over the White House and both houses of Congress; however, ARRY continues to offer a significant discount to its peers, “the 5-star analyst noted. Pourreza added:” We remain optimistic about ARRY’s growth prospects driven by 1) trackers’ market share gains over tracking systems. fixed tilt, 2) ARRY market share gains within the tracker industry, 3) ARRY’s huge opportunity in the less penetrated international market, 4) the opportunity to monetize its existing customer base over the long term through warranties extended, software updates, etc., which have a high cumulative margin. “In line with these bullish comments, Pourreza rates ARRY stock as Buy, and its $ 59 price target implies a 59% increase from current levels. (To view Pourreza’s track record, click here) New stocks in growing industries tend to attract the attention of Wal-Mart professionals. l Street, and Array has 8 reviews posted since it went public. Of these, 6 are buys and 2 are holds, making the stock’s consensus rating a strong buy. The median price target of $ 53.75 suggests room for a ~ 45% hike in the next 12 months. (See ARRY’s stock analysis on TipRanks) Paya Holdings (PAYA) The second Cohen pick we’re looking at is Paya Holdings, a North American payment processing service. The company offers integrated payment solutions for B2B operations in the education, government, healthcare, non-profit and public service sectors. Paya has more than $ 30 billion in payments processed annually, for more than 100,000 clients. In mid-October of last year, Paya completed its move to the public market through a merger of SPAC (special acquisition company) with FinTech Acquisition Corporation III. Cohen is standing with the bulls in it. During the fourth quarter, Point72 acquired 3,288,843 shares, bringing the size of the stake to 4,489,443 shares. After this 365% boost, the position value is now ~ $ 54 million. Mark Palmer, 5-star analyst at BTIG, is impressed with Paya’s prospects in the medium term and writes: “We expect PAYA to generate revenue growth in adolescence for years to come, with Integrated Solutions poised to grow in the mid-term. of the 20 and payment services will grow in the middle digit. At the same time, the company’s operating expenses should grow in the context of 5%, in our opinion. As such, we believe that PAYA’s adjusted EBITDA growth will be above 20% over the next few years, and that its adjusted EBITDA margins will expand to 28% by year 21 from 25% in 2019. ” Palmer sets a target price of $ 18 on the PAYA stock, indicating his confidence in a 49% growth for the coming year, and rates the stock as a Buy. (To view Palmer’s history, click here) PAYA’s Strong Buy analyst consensus rating is unanimous, based on 4 buy-side reviews established in recent weeks. The stock has an average price target of $ 16, which suggests a potential upside of ~ 33% from the current share price of $ 12.06. (See PAYA’s stock analysis on TipRanks) Dicerna Pharma (DRNA) Last but not least is Dicerna Pharma, a clinical-stage biotech company that focuses on the discovery, research and development of treatments based on On its RNA interference technology (RNAi) platform. The company has 4 candidate drugs in various stages of clinical trials and another 6 in preclinical studies. The company’s portfolio of projects clearly caught the attention of Steven Cohen, to the point of taking a new stake for a total of 2.366 million shares. This participation has a value of $ 63.8 million at current values. The furthest candidate drug in the Dicerna process is nedosiran (DCR-PHXC), which is being investigated as a treatment for PH or primary hyperoxaluria, a group of several genetic disorders that cause life-threatening kidney disorders through the overproduction of oxalate. Nedosiran inhibits the enzyme that causes this overproduction and is in a phase 3 trial. First-line results are expected in mid-’21 and, if all goes according to plan, an NDA filing for nedosiran is anticipated near the end of 3T21. In hedging Leerink shares, analyst Mani Foroohar sees nedosiran as the key to the company’s short-term future. “We hope that nedosiran can gain approval in mid-2022, putting the drug about a year and a half behind its competitor Oxlumo (ALNY, MP) in PH1 … A successful result will transform DRNA into a commercial rare disease company in an attractive market duopoly with best-in-class label breadth, “Foroohar noted. To this end, Foroohar rates DRNA outperforming (ie Buy), and its $ 45 price target suggests upside potential of one year of 66%. track record, click here) Overall, Dicerna Pharma has 4 Buy reviews on record, making Strong Buy unanimous. DRNA’s stock is trading at $ 26.98, and its average target price of $ 38 puts the upside to ~ 41% over the next 12 months. (See DRNA’s stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, an online tool. A recently launched nta that brings together all of TipRanks’ stock insights. only those of leading analysts. ntent is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.