Billionaire Ray Dalio (Ray Dalio) bets on 3 “strong buy” stocks
When the billionaire financier Ray Dalio took action, Wall Street began to pay attention. Dalio started trading commodity futures on the New York Stock Exchange. He founded Bridgewater Associates, the world’s largest hedge fund, in 1975. The company manages approximately US$1
40 billion in global investments. Dalio’s own net worth comes from his net worth of US$17 billion and has earned a legendary status on Wall Street. Summarizing his success, Dalio offers three suggestions for investors. First, diversification. In many industries, keeping a large number of stocks from your investment portfolio is the most reliable way to ensure a good investment. Second, don’t assume that emerging markets will rise forever. This is a variation of Dalio’s old saw. The past performance of the old saw cannot guarantee future returns. Dalio will tell you that all the strong returns in the past really guarantee the current high prices. Finally, Dalio tells investors, “Do something that is contrary to your intuition.” Or put it another way, don’t just do it casually, because such thinking often leads to sub-optimal results. Expecting Dalio to seek investment inspiration, we use TipRanks’ database to find out whether the three stocks that the billionaire recently added to the fund represent eye-catching. According to the platform, the analyst community believes that they have done so, and all selected stocks have received a “Strong Buy” consensus rating. Whether measured by revenue or market share, Linde PLC is the world’s largest industrial gas producer. Linde produces a variety of industrial gases and is a major supplier of argon, nitrogen, oxygen and hydrogen, as well as special gases such as carbon dioxide in the soft drink industry. The company also produces gas storage and delivery equipment, welding equipment and refrigerants. In short, Linde embodies Dario’s “diversity” motto. Linde’s industry leadership and important products helped the company rebound from the corona crisis. The company’s revenue declined in 1H20, but grew in the second half of the year, reaching pre-corona levels in the third quarter and exceeding the fourth quarter level. To show confidence, the company stabilized its dividend at 96 cents per common share during the “corona year” period, and in the most recent first-quarter announcement, Linde raised the dividend to $1.06 per share. The annualized return is $4.24, and the yield is 1.7%. The key point here is not moderate earnings, but the company’s confidence in the safety of its positions, which allows it to maintain a stable dividend even when many of its peers cut profit distribution. Therefore, it is no wonder that investors like Dalio are interested in companies like Linde. The billionaire’s fund snapped up 20,149 shares in the fourth quarter, valued at $5.05 million at current prices. Analyst John McNulty evaluated Linde (BMO) and was confident about Linde’s current performance. “LIN continues to execute its growth strategy to achieve stable double-digit profit growth, especially without further macro improvement. We believe that management’s guidance of 11-13% for 2021 is still conservative, depending on its upcoming The projects launched, continuous pricing, efficiency improvement, strong balance sheet and strong cash flow brought back strong repurchase; in addition, the stable FCF position provided them with a large amount of dry powder for mergers and acquisitions, decapitalization and other aspects. Even in cyclical markets, the group is the largest global industrial gas company.” Consistent with his optimistic comments, McNaughty rated Lin as a buy. His $320 target price means that there is about 28 room for upside in the coming year. %. (To view McNulty’s track record, click here.) Wall Street analysts have a broad consensus on the quality of Linde’s stock, as shown by 15 purchase reviews that balance 3 share holders. This gives the stock a “strong buy” analyst consensus rating. The stock price is US$250.88 and its average price target is US$295.73, indicating that their growth rate is about 18%. (See LIN stock analysis on TipRanks) BlackRock (BLK) is next to the world’s largest asset management company. BlackRock manages more than $8.67 trillion in assets. The company is one of the leading index funds in the US financial industry, with revenue of $16.2 billion last year and net income of $4.9 billion. BlackRock’s most recent fourth-quarter report showed its strengths to the best of its ability. Earnings per share were US$10.02, a 12% increase from the previous quarter and a year-on-year increase of 20%. Quarterly revenue was US$4.8 billion, an increase of 17% year-on-year. The full-year revenue increased by 11% compared to 2019. Even when the 1H20 corona crisis stabilized the economy, BlackRock achieved all these goals. In the first quarter of this year, BlackRock announced a regular quarterly dividend and increased the dividend by 13% to $4.13 per common share. Calculated on an annual payment of $16.52, the yield is 2.3%. The company has maintained a reliable dividend distribution for the past 12 years. Dalio’s fund didn’t want to miss a compelling opportunity, so it triggered the trigger of 19,917 shares, thereby improving its position in BLK again. This newly added value? More than 14 million US dollars. Analyst Brian Bedell, reporting for Deutsche Bank (BLK), said: “We think the fourth quarter performance is very good, and its products have long-term strong net capital inflows, despite the one-time pension fund The outflow of US$55 billion of low-priced equity capital, but we expect this situation will continue. Expect 1H21 index assets. This means that the impact on basic fee income is minimal. In addition, the total net inflow promotes the annual growth of organic basic management expenses to reach A record quarter, an increase of 13%, while the annualization of long-term organic management assets increased by 7%. We expect that by 2021, due to the tilt of the traffic mix toward higher rate products, the growth of organic basic expenses will exceed that of organic The growth of assets under management.” To this end, Bader rated BLK’s stock as a “buy”, and its $837 target stock price implies that the stock has about 18% upside. (To watch Badel’s track record, click here.) The analyst consensus tells a very similar story. BLK has received 6 “buy” ratings in the past three months, and a single hold remains unchanged-this clearly shows that analysts are impressed by the company’s potential. The stock price is 710.11 US dollars, the average price target is 832.17 US dollars, this stock has 17% upside potential. (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is the main name of the pharmaceutical industry. The company is the manufacturer of Humira, an anti-inflammatory drug used to treat various chronic diseases, including rheumatoid arthritis, Crohn’s disease and psoriasis. The company’s other immunological drugs Skyrizi and Rinvoq were approved by the FDA for the treatment of psoriasis and rheumatoid arthritis in 2019, and their total sales last year were US$2.3 billion. AbbVie predicts that when the Humira patent expires in 2023, these drugs will “fill the gap,” and sales will reach $15 billion by 2025. Humira is currently the main driving force of AbbVie’s immunology product portfolio, providing $19.8 billion in annual revenue of $1 billion out of the $22.2 product portfolio, accounting for a large portion of the company’s total sales. By 2020, AbbVie’s revenue for all business units will be 45.8 billion U.S. dollars, and adjusted diluted earnings per share will be 10.56 U.S. dollars. In addition to the eye-catching anti-inflammatory drugs, AbbVie also has long-term stable drugs on the market. For example, the company owns Depakote, a common anti-epileptic drug. AbbVie also maintains an active research channel, and dozens of drug candidates are undergoing research in immunology, neuroscience, oncology and virology. For investors, AbbVie has long been committed to returning profits to shareholders. The company has a history of 8 years and can maintain a reliable and growing dividend. In the latest announcement, AbbVie announced this month that it will pay in May, increasing its dividend by 10% to $1.30 per common share. Calculated with an annualized rate of return of $5.20, the rate of return is 4.9%. Once again, we are looking for stocks that reflect Dario’s recommendations. After the trigger for ABBV in the fourth quarter, Dalio’s company purchased 25,294 shares. At current valuations, this is worth $2.66 million. Leerink analyst Geoffrey Porges reported on ABBV and was impressed by the way the company prepared in advance for the loss of the exclusivity of its best-selling products in the United States. “Between the growth trajectory of ABBV’s former Humira portfolio and a broad portfolio of catalysts, covering early, mid- and late-stage assets, it is difficult to find a better-positioned biopharmaceutical company even if LOE is imminent. Be prepared, before 2023 (2021-2022) and after 2023-2028 (after 2024-2028), ABBV’s growth driver will be higher than the industry average top line and bottom line growth.” Porges believes. Porges gave ABBV a rating of “outperforming the market” and set a price target of $140, indicating that its one-year upside potential is 33%. (To view the track record of Porges, click here.) Overall, there are 10 comments on ABBV stock, and 9 of them are to be bought-which gives analysts a consensus rating of “Strong Buy”. The stock is trading at $105.01 and the average target price is $122.60. This indicates that there is about 17% upside in the next 12 months. (See ABBV Stock Analysis on TipRanks) To find great ideas for stock trading with attractive valuations, visit TipRanks’ “Best Stocks to Buy”, a newly launched tool that integrates all TipRanks stock insights integrate. Disclaimer: The views expressed in this article are only those of the main analyst. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.