[ad_1]
TipRanks
Billionaire Ray Dalio Collects These 3 “Strong Buy” Actions
Sometimes experts will tell us what we already know. Ray Dalio, the founder of Bridgewater Associates, has built a legendary reputation in financial circles for taking his company from a home-based business in his two-bedroom apartment to the international hedge fund giant, employing more than 1,500 people. and managing more than $ 138 billion in total assets. But when asked how he did it, or how today’s investors can survive the ongoing pandemic crisis, his advice may sound downright ordinary. Dalio’s advice for investing during the pandemic can be summed up quite easily. First, it says to diversify the portfolio. Diversification means spreading risk, which in turn will reduce your losses if one, or even several, investments turn south. Second, Dalio tells us not to bother trying to “time the market.” Even the pros don’t usually get this right, and Dalio says that simply buying a stock you like and holding it for the long term is a better strategy than trying to buy at the right time. The stock market is a risky place to invest and Dalio understands that. Your tactics for mitigating that risk are old and have possibly brought you great success. With this in mind, we decided to look to recent Bridgewater activity for inspiration. With three stocks that the Dalio fund rallied during the third quarter through the TipRanks database, we found that the analyst community is also on board, as each has a consensus rating of “Strong Buy.” Axter International (BAX) We will start with Baxter International, a healthcare company based outside of Chicago. Baxter produces medical devices and other products for the treatment of acute and chronic conditions, particularly blood, immune, and kidney diseases. The company markets primarily to healthcare professionals and institutions, rather than the open market, and has more than $ 11 billion in annual revenue. The company’s revenues up to 2020 have remained stable and in line with historical values. Baxter ended 2019 with a $ 3 billion quarter; which decreased to $ 2.72 billion in 1Q20, but had steadily increased to $ 2.97 billion in 3Q20. The company pays a modest dividend to investors, which at 24.5 cents per common share yields a 1.3% return. Dalio’s position at Baxter is new to him. His company bought 124,701 shares, a stake worth $ 9.73 million at current prices. 5-star analyst Danielle Antalffy of SVB Leerink writes of Baxter, “[We] see BAX’s underlying fundamentals – accelerated sales growth, significant margin expansion – unchanged. One of the most significant data points this quarter was 6% growth for peritoneal dialysis patients … well ahead of the long-term, single-digit growth outlook for the kidney business that Street is modeling. As COVID pressures begin to rise, the visibility of long-term growth drivers should improve and we would expect stocks to rise significantly. ” In line with his bullish comments, Antalffy rates BAX’s stock as outperforming (i.e. buying) and its price target of $ 105 implies a one-year upside potential of 34%. (To view Antalffy’s history, click here) Overall, Baxter’s analyst consensus rating is a Strong Buy, based on 12 reviews including 11 purchases against a single hold. The stock is selling for $ 78, and its average target price of $ 95 suggests it has room for upside growth of ~ 22% in 2021. (See BAX stock analysis on TipRanks) CVS Health Corporation (CVS) The following Stock is another healthcare company, but where Baxter, above, markets the professional side of that industry, CVS is targeting the consumer healthcare market directly. This company is better known as the CVS pharmacy chain and is a staple of the retail scene. CVS stores offer a variety of home health and hygiene products, along with staples, pharmacy services, and some more specialized prescription medical equipment. The company has generated more than $ 130 billion in annual revenue over the past three years. CVS revenues showed a slight drop this year, during the second quarter, when economic conditions deteriorated, but recovered quickly. The 2020 quarterly earnings sequence of $ 66.7 billion, $ 65.3 billion and $ 67.1 billion, shows a stable sales base, which is expected from a retailer that deals in products that are deemed essential during closing policies. Q3 EPS was $ 1.66, well above consensus expectations of $ 1.33. The dividend here is 50 cents a share, and it has been stable at that level for over three years. The payment is annualized at $ 2 and gives a yield of 2.7%. Dalio’s Bridgewater bought 320,039 CVS shares last quarter, expanding a trial position the company already had. The purchase dramatically increased the total stake, to 333,804 shares, which are now worth $ 24.87 million. Deutsche Bank analyst George Hill notes that CVS appears poised for a “peaceful transition of power” when current CEO Larry Merlo steps down next year. “While we believe that Ms. Lynch will likely consider executing CVS’s vertically integrated care delivery strategy, we hope that she will take a fresh look at the business and have little fear of exploring new directions. We believe that Mr. Merlo’s legacy will have the courage to try to reshape and better utilize the struggling retail pharmacy with the Aetna deal, “said Hill.” CVS is in the early stages of fulfilling its vision of a vertically integrated healthcare company with a commitment Huge consumer rating, “concluded the analyst. To this end, Hill rates CVS shares as a Buy and gives them a price target of $ 101, indicating his confidence in a growth potential of 35% over the next few months. (To view Hill’s history, click here) Overall, CVS has 7 recent buy reviews and 2 holds, giving the stock a Strong Buy rating from analyst consensus. The average price target is $ 83.29, suggesting an 11% increase from the current stock price of $ 74.50. (See CVS stock analysis on TipRanks.) Darling Ingredients (DAR) With the latest stocks, we moved from the sanitary to the food industry. Darling Ingredients recycles waste products from the restaurant industry and the animal processing industry, namely oils, fats and fats, and manufactures usable meat and bone meal, yellow fat and tallow. The company’s products are used in pet food, animal feed, bioenergy, and fertilizers. Darling has had a strong performance through 2020. The company’s quarterly earnings stood between $ 848 million and $ 852 million during the crown crisis, while earnings showed year-over-year gains in each quarter. Third quarter results included 61 cents of EPS on $ 850 million in top-line revenue. DAR shares have risen steadily since last winter’s market crash, and are up ~ 77% year-to-date. This is another new position for Dalio and Bridgewater. During the third quarter, the fund pulled the trigger on 69,392 shares, which are now worth $ 3.46 million. In hedging Wolfe Research shares, five-star analyst Sam Margolin is impressed by Darling’s combination of leading-edge renewable fuels and mature feed segments. “We rate DAR Outperform due to its rapid growth in the renewable diesel segment (Diamond Green Diesel JV), supported by its raw material / manufacturing advantage that comes primarily from the core business … DAR’s other segments are food ingredients and feed, which is relatively mature compared to fuels. While we do not expect material growth in Food and Feed, we note that the margins in the segments have remained remarkably stable in recent years … ”These comments support Margolin’s rating of Superior Performance (ie Buy), and Your price target of $ 67 implies upside growth of 34% below. year. (To see Margolin’s history, click here) Other analysts are on the same page. With 5 purchases and 1 hold received in the last three months, the word on the street is that DAR is a strong purchase. The stock is currently priced at $ 49.87, and the median target price of $ 58.83 suggests double-digit growth of 18%. (Check out DAR’s stock analysis on TipRanks) To find good ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all TipRanks stock perspectives. Disclaimer: The opinions expressed in this article are solely those of prominent analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
