Maintaining returns will be a clear strategy in today’s market, as key indicators are at an all-time low for the year so far – with losses of 15% on the S&P 500 and 24% on the NASDAQ. For investors, then, the best strategy might be to follow a winner.
Billionaire investor legend George Soros is certainly a winner. He has built a portfolio worth billions and was probably the biggest bull run in the history of hedge funds, averaging 30% annual income for 30 years. Starting in 1992, when he shortened the pound sterling and made 1 billion in 24 hours, in his most recent 13F filing, Soros has a record of success that could be matched by very few investors.
Today, Soros remains the chair of Soros fund management and is estimated to be worth more than $ 8 billion, a statistic that would have been much higher but for the billionaire’s massive public interest work.
So, when Soros takes a new position for his stock portfolio, it is normal for investors to sit back and watch. With that in mind, we decided to look at three stocks that his fund recently loaded up. Soros is not the only one who has confidence in these names; According to the TipRanks database, Wall Street analysts rated all three as Strong Buy and also saw a lot of reversal on the horizon.
Stem, Inc. (STEM)
First, STEM, a technology company that specializes in creating ‘smart’ storage systems for clean energy using artificial intelligence (AI). In other words, the company is designing thoughtful batteries that have been optimized for use with renewable energy generation projects. Energy storage is a major barrier to renewable energy; As we all know, you cannot get the grid with wind or solar when the wind or night goes down. Smart batteries will allow manufacturers to suppress higher performance from the best generation time.
The company’s flagship product is the Athena software platform, which uses a combination of AI and machine learning to optimize the switches between grid power, on-site generated power and battery power. The customer base includes public utilities, large corporations, and various project developers and installers. STEM estimates that its total addressable market will grow 25-fold to $ 1.2 trillion by 2050.
So the stem could be a boom going to be found at the beginning. And the company’s revenue growth will suggest that the ‘boom potential’ is real. The top line grew 166% from 1Q21 to 1Q22, rising from $ 15.4 million to $ 41.1 million in one year, and 29% from the top edge of previously published guidelines. The company’s quarterly bookings nearly tripled, from $ 51 million a year ago to Q 151 million in 1Q22. And, despite running quarterly net losses, STEM ended the first quarter of this year with a usable balance of $ 352 million in cash and liquid assets.
All of this caught the attention of George Soros, who first bought 300,000 shares of Stem in Q1. The shares are currently valued at 2.25 million.
Guggenheim analyst Joseph Osha, given a 5-star rating in the Tipperary, is also bullish here. He noted that the company’s Q1 results met its expectations, and then added, “STEM still faces a multi-year period in which most of the company’s revenue is made up of sales of low-margin storage hardware, but we are growing confident that the company manages storage assets and Should be able to earn good returns by sending. At the moment, the company’s full-year goals seem reasonable to us, and indeed the annual recurring revenue target of $ 60-80 million seems conservative to us. “
These comments back up Osher’s buy rating on STEM stocks, while its $ 16 price target points to a ~ 115% uptrend over the next 12 months. (To view Osher’s track record, Click here)
For the most part, Wall Street analysts agree that it is a stock to buy. Stem shares have 5 recent analyst reviews, including 4 above 1 by 1 hold, for a strong buy consensus rating. The stock is trading at $ 7.49 and its মূল্য 16.40 average price target indicates that it is ~ 120% ahead. (See Stem Stock Forecast in Tiprank)
Webster Financial (WBS)
The next Soros pick is Webster Financial. It is a holding company, the core of Webster Bank The Connecticut-based banking firm has approximately 65 billion in assets and provides a variety of services, including customer and commercial banking, personal and business loans, and asset management. Webster has promised growth, and in February of this year it completed its merger with Sterling Bancorp. With the completion of that transaction, Webster now has $ 44 billion in loans, $ 53 billion in deposits, and a network of 202 branches in the Northeast.
Webster’s first quarter of 2022 showed net interest income of $ 394 million, up 76% year-over-year. The company’s interest-generating assets showed significant growth last year, rising from $ 19.2 billion to $ 50.3 billion, an increase of 61%. Webster has increased its debt and lease arrears by 67%, from $ 14.4 billion to $ 35.9 billion, and its average deposits have increased from $ 17.6 billion to $ 45.9 billion or 62%.
These gains in earnings and earnings support supported Webster’s continued payment of its dividends, which were announced in April at 40 cents per share. Dividends are currently producing 3.45%, with an annual rate of 60 1.60 per share.
Back to Soros’ activity here, the billionaire bought 42,100 shares of WBS stock in Q1, now valued at a total of $ 2.02 million.
Soros is not the only one who has given this stock some love. William Wallace, a 5-star analyst at Raymond James, has a strong buy rating here and a মূল্য 73 target price that suggests a% 52% increase for the year ahead. (To view Wallace’s track record, Click here)
Supporting his bullish position, Wallace writes: “In everything, our thesis remains unchanged, where we believe that the spending and growth targets from the Sterling agreement are achievable, and the financial merits of the agreement continue to be misjudged, leaving room for the opposite. “Given the progress towards the agreement’s targets, which seem increasingly reasonable, we believe the shares should recover their discounts and ultimately trade at a premium to its mid-cap peer group valuation comparison.”
Overall, out of 8 recent analyst reviews published for WBS, 6 buy and 2 hold, support a strong buy rating. The stock has an average price target of $ 70.25, which means a% 47% rise above the $ 47.81 share price. (See WBS Stock Forecast at TipRanks)
Synovas Financial Corporation (SNV)
Let’s talk to Synovus, another citizen of the financial world. The Columbus, Georgia-based financial services company has approximately 56 billion in assets and has 272 branches in southeastern Tennessee, South Carolina, Georgia, Alabama and Florida. It is a high-growth region, known as one of the economic drivers of the country. Florida is the third largest state in the country, and Tennessee, without any state income tax, outweighs its weight in attracting business growth. This is the playground of Synovas.
In 1Q22, Synovus reported a year-over-year earnings reduction. Mixed EPS dropped to $ 1.11 in the current report from $ 1.19 in the same quarter a year ago. At the same time, the bank’s credit business has increased in this quarter. Total debt rose to $ 40.1 billion as of March 31, from $ 38.8 billion a year earlier. Total deposits increased by an average of 3%, from $ 47.3 billion to 48.6 billion.
Synovus is still confident of increasing its dividend payments for the first time since the start of 2020. In a March announcement, the company raised its general share dividend from 33 cents to 34 cents At an annual payout of $ 1.36, it gives a yield of 3.5%.
Soros liked what he saw here and in the last quarter he bought 40,800 shares. At current prices, they are now valued at $ 1.65 million.
Controversial billionaire Synovas was not the only bull. In Wells Fargo coverage, analyst Jared Shaw writes, “The impact of streamlining the franchise, reducing overall credit risk, expanding into the fast-growing FL market and delivering a major start to digital offers was implemented throughout 2021, with an increasing momentum so far this year. We believe that SNV has reached a turning point in 2021 and we believe that an upgraded management for ’24 combined with the growth outlook will elevate asset sensitivity stocks. “
To this end, Shaw gives SNV stock an overweight (i.e. buy) rating, and its price target is $ 65, indicating the possibility of a 60% increase over the next 12 months. (To view Shaw’s track record, Click here)
After all, the stock received a unanimous strong buy from the consensus of the Street based on 7 recent analyst reviews. The stock is trading at $ 40.6 and its average price target of $ 58.71 suggests a% 45% rise above that level. (See SNV Stock Forecast at TipRanks)
To get a better idea of stock trading at attractive valuations, visit the best stocks to buy TipRanks, a newly launched tool that integrates all the equity insights of TipRanks.
Disclaimer: The views expressed in this article are those of the featured analysts only. Content is intended for informational purposes only. It is very important to do your own analysis before making any investment.