Billionaire Ray Dalio pulls the trigger on 3 “Strong Buy” stocks
There are experts in the stock market whose investment movements command respect. They have earned this by cultivating a long-term reputation for genuine craftsmanship in the pursuit of solid returns – and few of these experts have the stature of billionaire financier Ray Dalio. Dalio began trading commodity futures on Wall Street, and in 1975 he founded Bridgewater Associates from his apartment in New York City. Today, with Dalio still at the helm, Bridgewater generates over $ 46 billion in revenue and has over $ 140 billion in assets under management. Dalio built his castle respecting three rules for his investments; First, he reminds us that “diversifying well is the most important thing to do in order to invest well.” Dalio’s second tip is reminiscent of the old market clichÃ© that past performance won’t guarantee a future return, but written in his own style. He said, “Don’t make the mistake of thinking that the things that have increased are better, rather than more expensive.” Finally, Dalio always tells us “Do the opposite of what your instincts are.” Dalio would buy when others sell, and sell when they buy – and the results, in Bridgewater’s long-term success, are clear. Researching Dalio’s inspiration for investing, we used TipRanks’ database to find out whether three stocks the billionaire recently added to the fund represented compelling games. According to the platform, the analyst community thinks so, with all of the choices earning “Strong Buy” consensus ratings. Let’s go. Aptiv PLC (APTV) Aptiv has a long history in the automotive industry, where it used the Delphi name and was a staple of Detroit’s supply chain from the mid-90s until 2017. remaining activities of the powertrain, and changed its name and purpose. In its modern incarnation, Aptiv works on the fusion of high tech and automotive technology. The company develops software, networks and computing platforms aimed at improving the safety and efficiency of vehicles. In January of this year, Aptiv unveiled ADAS, its open and scalable platform to enable software-defined vehicles while reducing complexity. The platform delivers high-performance computing power to improve connectivity and approximate autonomous vehicle driving systems. The platform will also allow continuous updating throughout the life of the vehicle. In the first quarter, Aptiv posted $ 4 billion on the top line, up 20% year-over-year. Operating profit was $ 437 million, up nearly 11% year-on-year, and EPS was $ 1.03. EPS was down from the $ 6 + reported a year ago, but was in line with the $ 1.04 reported in the most recent two quarters. Thus, Aptiv strives to innovate in the automotive field, and its work generates profits. No wonder, then, that Dalio added 256,497 shares to its existing stake in the stock in the first quarter – an increase of more than 1,500%, and bringing its stake in the company to $ 35.12 million at the time. current assessment. As for analysts now, the title enjoys a strong fan base, which includes Raymond James’ 5-star analyst Brian Gesuale. âBusiness trends are strong, and a combination of typical conservatism and several uncontrollable industrial dynamics (supply chain, input costs, etc.) leaves plenty of opportunity for upward revisions and beats / increases throughout. of the yearâ¦. We continue to view APTV as one of the automotive technology names best positioned to capitalize on the growth in adoption of green, connected and autonomous technologies, ânoted Gesuale. Based on all of the above, the analyst attributes APTV to outperform (i.e. buy), and its price target of $ 200 implies a 46% hike for the coming year. (To see Gesuale’s record, click here) In general, the rest of the street agrees. 11 purchases, 1 hold and 1 sale attributed during the last three months correspond to a consensual âstrong buyâ rating. Moreover, its average price target of $ 170.33 suggests a potential upside of 24%. (See APTV stock analysis on TipRanks) Vroom, Inc. (VRM) The second stock we are looking at, Vroom, is an online retailer specializing in used cars, as well as parts and accessories, l insurance, car rental and purchase financing. In short, Vroom is an online one-stop-shop for automotive needs – for customers not looking to buy new and who are in the United States. Vroom was founded in 2012 and went public last summer. The IPO was priced at $ 22 and shares closed at $ 47.90 on the first day of trading. Overall, Vroom raised $ 467.5 million by bringing his stock to market. In recent months, the company has expanded its âlast mileâ concierge service, delivering purchased vehicles and collecting old cars from customers. The company added Detroit, LA and Chicago to this service in May and Denver in April. Last week, the company released its results for the first quarter, its fourth as a public entity. The quarter marked the third consecutive sequential gain in revenue and saw revenue reach $ 591.1 million. E-commerce accounted for $ 422.3 million of that revenue, up 81% from the previous year, and total online vehicle sales reached 15,504 units, a 96% gain on-year. annual. By pulling the trigger on VRM in the first quarter, Bridgewater bought more than 47,000 shares. This is a new position in Dalio’s company stock, and is currently worth $ 2.01 million. Weighing in on the company for Wedbush, five-star analyst Seth Basham points to his first quarter results as an encouraging sign. âVRM delivered strong 1Q21 results that exceeded both buy and sell side expectations … VRM not only benefits from strong market momentum, but also delivers higher margins by almost eliminating bottlenecks associated with its after-sales support processes and invests to stay ahead of growth in this and other key areas, “wrote Basham. The analyst summed up:” With these strong results, solid advice and continued improvements, we believe VRM could exceed its unchanged growth targets for FY21 of 100% + e-commerce and 200% gross margin and this could raise those targets with 2Q21 results. “Unsurprisingly, Basham gives VRM stocks an outperformance (i.e. buy) rating, as well as a price target of $ 60 which implies a ~ 41% rise for the next 12 months ( To see Basham’s history, click here) With buy notices exceeding 10 to 1 holdings, VRM shares have a strong Strong Buy consensus rating. The share price is $ 42.60, and the average target, at $ 53.64, suggests a year in reverse of ~ 26%. (See VRM stock analysis on TipRanks) Tempur Sealy (TPX) Automotive, we’ll be changing gears, slow down and look at the bedding. You probably don’t think much about your bed, mattress, or pillow, but taken together it’s big business. Tempur Sealy, which owns the well-known brands of Tempur-Pedic bedding products , Stearns & Foster and Sealy, is an industry leader. Last year, the company saw sales increase 18%, from 3.11 to $ 3.68 billion. Over the past 12 months, TPX shares have gained an impressive 155%, more than doubling in value. Although the company experienced a short-lived decline in sales during the corona crisis, business has since rebounded and each of the past three quarters has surpassed $ 1 billion at the peak. In April, TPX released results for the first quarter, showing a 27% increase in total year-over-year revenue, along with EPS of 62 cents. The number of BPAs, although declining sequentially from the fourth quarter, increased 121% year-over-year. The company reported a substantial year-over-year increase in net cash from operations, from $ 15 million to $ 86.3 million. We are looking for a solid company, with a solid base, sure aspects to attract an investor interested in diversity and returns. Dalio’s company bought 199,649 shares of TPX in the first quarter. It was a new post for Bridgewater, but a substantial post; at the current share price, it’s worth $ 7.24 million. Among the bulls is Piper Sandler’s 5-star analyst Peter Keith, who points to the strength of the TPX investment. âTPX’s competitive positioning remains at an all time high, the bedding industry has never been healthier, the consumer is in excellent shape and International is expected to show sequential improvement in trends through 2022. While Supply chain constraints have resulted in disruption, TPX expects headwinds to moderate significantly by the end of the second quarter, âKeith said. To that end, Keith rates TPX an overweight (i.e. buy) and gives it a price target of $ 50, suggesting a year-over-year rise of around 40%. (To look at Keith’s track record, click here) Wall Street clearly agrees with Keith here, as the 8 stock reviews on record include 6 to buy and only 2 to hold, for a Strong Buy consensus rating. The trade price is $ 35.83 and the average price target of $ 46 implies a 28% hike from this level. (See TPX Stock Analysis on TipRanks) To get great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured 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.