Billionaire Ray Dalio places bets on 3 “strong buy” stocks
When billionaire financier Ray Dalio moves, Wall Street draws attention. Dalio, which began working on the floor of the New York Stock Exchange trading commodity futures, founded the world’s largest hedge fund, Bridgewater Associates, in 1975. With the firm managing about $ 140 billion in global investment and Dalio’s own net worth reaching $ 17 billion. $ he has earned legendary status on Wall Street. Summarizing its success, Dalio has three pieces of advice for investors. First, diversify. Keeping a wide range of stocks in the portfolio from multiple sectors is the surest way to invest well. Second, do not think that rising markets will rise forever. This is Dalio’s variation on an old saw that past performance does not guarantee future returns. Dalio will tell you that all strong past returns really guarantee are current high prices. And finally, Dalio tells investors, “Do the opposite of what your instincts are.” Or otherwise, do not follow the herd, as such thinking often leads to suboptimal results. Looking to Dalio to invest inspiration, we used TipRanks’ database to find out if three stocks that the billionaire recently added to the fund represent compelling games. According to the platform, the analyst community believes they are doing so, with all elections earning “Strong Buy” consensus ratings. Linde PLC (LIN) The first new position is in Linde, the world’s largest industrial gas production company, whether it is counted by revenue or market share. Linde produces a range of gases for industrial use and is the dominant supplier of argon, nitrogen, oxygen and hydrogen together with niche gases such as carbon dioxide for the soda industry. The company also produces gas storage and transfer equipment, welding equipment and refrigerants. In short, Linde incorporates Dalios’ ‘diversify’ dictum. Linde’s management in the industry and important products helped the company jump back from the corona crisis. The company’s revenue slipped in the first half, but grew in the second half and reached the level before the corona in the 3rd quarter and exceeded these levels in the 4th quarter. In a sign of confidence, the company kept its dividend stable through the ‘corona year’ at 96 cents per share. Common stock – and in his latest Q1 statement, Linde raised the payment to $ 1.06 per share. Shares. This brings the annual rate to $ 4.24 and gives a dividend of 1.7%. The key point here is not the modest dividend, but the company’s confidence in the safety of its positions, which allows it to maintain a stable dividend at a time when many peers are reducing profit sharing. It is therefore no wonder that an investor like Dalio would be interested in a company like Linde. The billionaire’s fund snapped up 20,149 shares in the fourth quarter worth $ 5.05 million in current prices. Analysis John McNulty rates Linde for BMO and expresses his confidence in Linde’s current performance. “LIN continues to execute its growth strategy to drive solid double-digit earnings growth, especially without requiring further macro-improvement. In our view, management’s guidance of 11-13% for 2021 remains conservatively driven by its upcoming projects, continued pricing, efficiencies and solid repurchase with its strong balance sheet and cash flows.In addition, the solid FCF position gives them plenty of dry powder for M&A, de-cap, etc. We believe that LIN is ready to continue to surprise investors and surpass the wider group even in a cyclical market “the largest global industrial gas company,” McNulty said. In line with his bullish comments, McNulty rates LIN as a buyout, and its $ 320 price target represents an upward trend of ~ 28% for the coming year. (To see McNulty’s track record click here) Wall Street analysts agree on the quality of Linde’s shares, as evidenced by the 15 Buy reviews that overbalance the 3 Teams. the stock is its strong buying analyst consensus rating. Shares are priced at $ 250.88 and their average price target of $ 295.73 suggests that they have a growth of ~ 18% going forward. (See LIN stock analysis on TipRanks) BlackRock (BLK) Next time is the world’s largest asset manager. BlackRock has over $ 8.67 trillion in assets under management. The company is one of the dominant index funds in the US financial scene and had a turnover of $ 16.2 billion. Last year with a net income of $ 4.9 billion. BlackRock’s latest Q4 report shows its strength as far as numbers can. EPS came in at $ 10.02 per share. Share, a continuous gain of 12% and a gain of 20% over the year. Quarterly revenue of $ 4.8 billion Rise 17% per year. The full-year top line rose 11% from 2019. BlackRock achieved all this, even as the corona crisis flattened the economy in the first half. In the first quarter of this year, BlackRock declared its regular quarterly dividend, raising its payment by 13% to $ 4.13 per share. Common share. With an annual payment of $ 16.52, this gives a dividend of 2.3%. The company has kept the dividend reliable for the last 12 years. When Dalio’s fund did not want to miss a convincing opportunity, it pulled the trigger of 19,917 shares and gave it a new position in BLK. The value of this new addition? More than $ 14 million. Analyst Brian Bedell, who covers BLK for Deutsche Bank, writes: “We see 4Q results as very good with strong long-term net inflows across its products, which we expect to continue despite a one-off pension fund pension of DKK 55 billion. Dollars of equity with low fees index assets expected in 1H21, which mgmt. said would have a minimal impact on the base fee revenue. In addition, the total net inflow has led to an annual growth rate of 13% organic basic administration fee, a quarterly record, of long-term annual organic growth rate of 7%. We expect that the organic growth in the base fee will exceed the organic AuM growth coming into 2021, driven by a flow mix that is skewed towards higher fee percentage products so far. For this purpose, Bedell BLK is considering a purchase, and its price target of $ 837 suggests that the stock has ~ 18% upward ahead of it. (To see Bedell’s track record, click here) The analyst’s consensus tells a very similar story. BLK has received 6 Buy ratings in the last three months against a single Team – a clear sign that analysts are impressed with the company’s potential. Shares are selling for $ 710.11, and the average price target of $ 832.17 gives the stock a 17% upward potential. (See BLK stock analysis on TipRanks) AbbVie, Inc. (ABBV) AbbVie is a big name in the pharmaceutical industry. The company is a manufacturer of Humira, an anti-inflammatory drug used to treat a wide range of chronic diseases, including rheumatoid arthritis, Crohn’s disease and psoriasis. The company’s other immunological drugs, Skyrizi and Rinvoq, were approved by the FDA in 2019 as treatments for psoriasis and rheumatoid arthritis, respectively, and had total sales of $ 2.3 billion last year. AbbVie expects these drugs to ‘fill the gap’ in profits when the Humira patents expire in 2023 with up to $ 15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, delivering $ 19.8 billion of the portfolio’s 22.2 billion. $ in annual revenue and a significant portion of the company’s total sales. For the full year 2020, AbbVie experienced DKK 45.8 billion. Dollars in revenue across all divisions with an adjusted diluted EPS of $ 10.56. In addition to its high-profile anti-inflammatory line, AbbVie also has a ‘stable’ of well-established drugs on the market. As an example, the company owns Depakote, a common remedy for seizures. AbbVie also maintains an active research pipeline with dozens of drug candidates undergoing studies in the disciplines of immunology, neuroscience, oncology and virology. For investors, AbbVie has a long-term obligation to return profits to shareholders. The company has an 8-year history of maintaining a reliable – and growing – dividend. In the latest statement made this month for a payment to go out in May, AbbVie raised the dividend 10% to $ 1.30 per share. Common share. At $ 5.20 on an annual basis, this gives a yield of 4.9%. Once again, we look at stocks that incorporate some of Dalio’s advice. By pulling the trigger on ABBV in the fourth quarter, Dalio’s company bought 25,294 shares. At current valuation, this is worth $ 2.66 million. Leerink analyst Geoffrey Porges covers ABBV and is impressed with the way the company is preparing in advance for the loss of American exclusivity on its best-selling product. “Between ABBV’s former Humira portfolio growth path and a broad portfolio of catalysts across early, middle and late stage assets, it is difficult to find a biopharma company that is better positioned, even with their looming LOE. ABBV is prepared for 2023 and has growth drivers to drive better than the industry’s average top and bottom line growth in the period before (2021-2022) and after (2024-2028) 2023, ”said Porges. Porges gives ABBV an Outperform (ie Buy) rating and sets a price target of $ 140, indicating room for 33% one-year upside. (To see Porges’ track record, click here) Overall, there are 10 reviews of ABBV shares, and 9 of them need to be bought – a margin that makes the analyst’s consensus assessment a strong buy. The stock is trading at $ 105.01 and has an average price target of $ 122.60. This suggests an increase of ~ 17% over the next 12 months. (See ABBV stock analysis on TipRanks) To find great ideas for stocks that trade at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making an investment.