When legends speak, people listen – and very few investors match Ray Dalio’s legendary status. The founder of Bridgewater Associates has transformed his firm from a 2-room apartment operation into the world’s largest hedge fund, with more than $ 150 billion in assets under management and a net profit of over $ 46 billion.
Dalio believes that in the next two to four years, our global economic and political systems will change in a way that is now unpredictable. And the key to survival, for investors, can be a broad position in stocks. As Dalio puts it, “I want a highly diversified portfolio of assets, not cash and bonds. I want geographical diversity as much as I want wealth class diversity. “
With that in mind, our focus has shifted to Bridgewater’s recent 13F filing, which reveals the fund’s stocks in the first quarter. In particular, by locking in on two tickers, Tiprank’s database reveals that everyone has gained the consent of a “Strong Buy” analyst and boasts of significant inverse possibilities.
These are new locations for Bridgewater that could shed some light on where Dalio wants to go as the market climate storm picks up. Let’s take a closer look.
Beauty Health Company (Skin)
We will start in the self care sector with Beauty Health Company. Own and distribute a variety of skin care and cosmetics brands, including Beauty Health’s flagship brand, Hydrafacial. The company adopts a health-centric approach, promoting healthy skin as the key to beauty; Its products fill the gap between traditional cosmetics and medicinal skin treatments.
Beauty Health has entered the public market in 2021 through billion-dollar SPAC consolidation, and some are splashing. The company reported net sales of $ 260.1 million for HydraFacial last year and has expanded its customer base to 21,719 installed hydrafacial delivery systems in more than 90 countries. In March of this year, the company introduced a digitized upgrade to the hydraulic delivery system, called Syndeo, and saw 258 trade-ups on the new system before the end of Q1.
There was other good news in the company’s 1Q22. Revenue has expanded year-over-year, rising 58% to more than $ 75.4 million, and the company reported a total health mix of $ 33.8 million from consumer goods and $ 41.6 million from delivery systems. Beauty Health also boasts an enviable total margin of 69%, which is a good indication of the company’s ability to move towards profitability. Nevertheless, despite the company’s growing revenue picture, the stock has fallen almost half so far this year.
Ray Dalio sees the low share price as an opportunity. Its bridgewater firm SKIN made a significant purchase in shares, totaling 255,552 shares. At current market prices, this block is valued at $ 3.07 million.
Kyle Rose, a 5-star analyst at investment firm Canaccord, also sees plenty of reasons for an exuberant outlook here. “Skin has reported another impressive print with the launch of the next-generation Cindio platform,” he wrote. SKIN sees 2022 as its final investment year, as the company scales infrastructure and invests in Syndeo’s ongoing launch … Although some investors are concerned about the near-term margin effect of trade-in / upgrade on Syndeo, we believe the company is prudent. With continuing to invest in near-term / long-term growth initiatives that will lay a strong foundation from which it can collect leverage in the coming years (2023+). We see no reason to change our thesis because of the positive underlying pace of business. “
That thesis is a buy rating of the stock which comes with a target price of $ 22. If done right, investors can line up in their pockets with 83% profit. (To view Rose’s track record, Click here)
Clearly, bulls are effective for this cosmetic brand – SKIN has a unanimous strong buy consensus rating based on 8 positive analyst reviews. The stock is currently priced at $ 12.02 and its average price target of $ 23.13 indicates a strong 92% rise for the next 12 months. (See SKIN Stock Forecast at TipRanks)
On Trimble (TRMB)
Now let’s move our gears to an industrial technology company, Trimble Navigation. Trimble, located in Sunnyvale, California, provides software, hardware and support services to a wide range of industries, including agriculture, building and construction, geospatial, government, transportation and utilities, with the aim of connecting skills to the physical and digital worlds. . The company’s products include global navigation satellite system receivers, inertial navigation systems, laser rangefinders, unmanned aerial vehicles, scanners and software processing tools.
In recent weeks, Trimble has taken a step towards advancing its own activities. The company has transferred four subsidiary businesses to Precinct, one of Jordan’s affiliates. Precisional is an industrial precision measurement firm; The selected categories are Protempis, Spectra Precision Tools, LOADRITE, and SECO. The financial terms of the transaction were not disclosed.
Just days before the investment announcement, Trimble released its 1Q22 financial results – and showed a quarterly record of total revenue. At $ 993.7 million, the top line grew 12% year over year. Annual recurring revenue (ARR) increased 12% to $ 1.47 billion. The company reported $ 184.8 million in non-GAAP net income, which translates into a non-GAAP EPS of 73 cents. On a per-share basis, these earnings rose to 66 cents in 1Q21 – and exceeded the 68-cents forecast.
Ray Dalio must have liked what he saw here, as Bridgewater bought 143,439 shares. This new position is valued at 9.32 million at current trading levels.
Weston Twigg, a 5-star analyst at Piper Sandler, is also optimistic about Trimble, saying “this is not a sign of a recession.” For details, Twig writes, “Revenue in building and infrastructure and resources and utilities was significantly above our estimates, reflecting energy in construction and agriculture. As of now, TRMB has stopped selling HW to Russia / Belarus (approximately 2% of revenue), but it is redirecting these sales to other backlog customers, so it will see limited effects in 2022; If agricultural demand increases elsewhere, rising food prices could create long-term tailwinds. “
“We believe TRMB is making significant progress toward its software-centric, high-margin sales model, demonstrated by strong traction with its recently launched Trimble Construction One platform, which is a cloud-based, bundle building management SW,” Twigg summed up.
These comments support Twigg’s overweight (i.e. buy) rating on the stock and indicate a place for its $ 100 price target to rise to ~ 54%. (To view Twigg’s track record, Click here)
In general, the rest of the road has an optimistic outlook for TRMB. The stock’s strong buy status comes from 3 buy and 1 hold issued in the previous three months. Shares in TRMB are selling at 65.03 each, and the average target of $ 83.75 indicates a potential uptrend of% 29% from that level.
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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.