Billionaire Ray Dalio Pulls the Trigger on 3 “Strong Buy” stocks
There are experts in the stock market whose investment moves are respected. They earned this by earning a long-term reputation for true intelligence in finding solid returns – and few of these experts have the status of billionaire Ray Dalio. Dalio began trading commodity futures on Wall Street, and in 1975 founded Bridgewater Associates from his New York City apartment. Today, with Dalio continuing to lead, Bridgewater generates more than $ 46 billion in revenue and has more than $ 140 billion in assets under management. Dalio built his castle by adhering to three rules for his investments; First, it reminds us that “good diversification is the most important thing you need to do in order to invest well.” Dalio’s second tip is a reminder of old market style that past performance will not guarantee a future comeback, but rather is styled. “Make no mistake in thinking that those things that happened are better than more expensive,” he says. Finally, Dalio always tells us, “Do the opposite of your instincts.” Dalio was buying when others sold, and selling when they did – and the results, in Bridgewater’s long-term success, are evident. Looking at Dalio for investment inspiration, we used TipRanks to see if three stocks the billionaire recently added to the fund represented a compelling play. According to the platform, the analyst community believes they do, with all picks receiving “strong buy” consensus ratings. Let’s move on directly. Aptiv PLC (APTV) Aptiv has a long history in the automotive industry, using the Delphi name and was a staple of the Detroit supply chain from the mid-1990s through 2017. At that time, the remaining powertrain business separated from it, changing both its name and focus. In its modern incarnation, Aptiv fuses hi-tech and automotive technology. The company develops software, networks and computing platforms geared towards improving vehicle safety and efficiency. In January of this year, Aptiv unveiled ADAS, its open and scalable platform to enable software-defined vehicles while reducing complexity. The platform provides high-performance computing power to enhance connectivity and move a step closer to autonomous vehicle driving systems. The platform will also allow for continuous updating over the life of the vehicle. In the first quarter, Aptiv showed $ 4 billion on the top line, up 20% year-over-year. Operating income was $ 437 million, an increase of nearly 11% year-on-year, and earnings per share came in at $ 1.03. Earnings per share decreased from the $ 6 + reported one year earlier, but was in line with the $ 1.04 reported in the last two quarters. Therefore, Aptiv is breaking new ground in the automotive business, and its business is making a profit. Little wonder, then, that Dalio added 256,497 shares to his current shareholding in the first quarter – up over 1,500%, and put his stake in the company at $ 35.12 million in the current valuation. Turning now to analysts, the stock boasts a strong fan base, including 5-star analyst Brian Jiswal from Raymond James’ team. “Business trends are solid, the combination of exemplary conservatism and the many uncontrollable industry dynamics (supply chain, input costs, etc.) leave ample opportunity for upward reviews and rhythms / increases during the year budget … We still see APTV as one of the best names. In the field of automotive technology to benefit from the growth of green, connected and autonomous technology adoption, ”Jiswal noted. Building on all of the above, the analyst ranks APTV as an outperformer (i.e. buy), and his price target of $ 200 equals a 46% gain for next year. (To see the Gesuale record, click here) In general, the rest of the street is agreed upon. The 11 buy, 1 contract and 1 sell set in the last three months add up to the “strong buy” consensus rating. Additionally, the average target price of $ 170.33 indicates a potential upside of 24%. (See APTV stock analysis on TipRanks) Vroom, Inc. (VRM) The second stock we’re looking for, Vroom, is an online retailer that specializes in used cars, as well as parts and accessories, insurance, car rental and purchase financing. In short, Vroom is a one-stop shop for auto needs – for customers who aren’t looking to make a new purchase, and they’re in the US. Vroom was founded in 2012 and went public last summer. The IPO was priced at $ 22, and shares closed at $ 47.90 in first day trading. Overall, Vroom raised $ 467.5 million and put its shares on the market. In recent months, the company has expanded its “last mile” concierge service, delivering purchased vehicles and collecting old cars to customers. The company added Detroit, Los Angeles and Chicago to this service in May, and Denver in April. The company last week released its first-quarter results, its fourth as a public entity. The third quarter represented the third consecutive revenue gain, and saw net profit reach $ 591.1 million. E-commerce accounted for $ 422.3 million of that revenue, up 81% from the previous year, and total online car sales reached 15,504 units, an increase of 96% year-on-year. Pressing the trigger on VRM in the first quarter, Bridgewater bought more than 47,000 shares. This is a new equity position for Dalio, and it is currently valued at $ 2.01 million. Five-star analyst Seth Basham weighs in at Wedbush, pointing to first-quarter results as an encouraging sign. “VRM has delivered strong results in Q1 21 that exceeded buy-side and sell-side expectations … VRM not only benefits from strong market dynamics, but also generates higher profit margins by virtually eliminating bottlenecks associated with its aftermarket support operations and invests in To stay ahead of the curve Basham wrote: “Growth in this and other key areas.” The analyst summed up, “With these strong results, strong guidance, and continuous improvements, we believe VRM can outperform the growth targets for FY 21 year on year without change by 100%. + Ecommerce units and a total profit of 200% and could raise those targets with results for the second quarter of year 21. ‘Unsurprisingly, Basham gives VRM shares a superior rating (i.e. buy), along with a $ 60 price target which means a gain of roughly 41% for months The next 12 (to see Basham’s track record, click here) With valuations buying 10 to 1 out of the hold, VRM stocks have a strong consensus rating for strong buy. Stock price is $ 42.60, average target is $ 53.64, indicates year One upside down After ~ 26%. (See TipRanks VRM Stock Analysis) Tempur Sealy (TPX) of cars, we’ll change gears, slow down, and take a look at the mattress. You probably don’t think much of your bed, mattress, or pillow, but if you put it together, it’s big business. Tempur Sealy, which owns the famous brands of bedding products, Tempur-Pedic, Stearns & Foster and Sealy, is a pioneer in this field. In the past year, the company has seen its top revenue grow by 18%, from $ 3.11 billion to $ 3.68 billion. Over the past twelve months, TPX stocks have gained an impressive 155%, more than double in value. While the company saw a short-term drop in sales during the Corona crisis, business has since rebounded, with each of the last three quarters topping $ 1 billion on the top line. In April, TPX announced its first-quarter earnings, showing an annualized increase in total revenue of 27%, along with earnings per share of 62 cents. The earnings per share increased by 121% compared to the previous quarter, while it decreased sequentially compared to the fourth quarter. The company reported a significant increase in net cash from operations on an annual basis, from $ 15 million to $ 86.3 million. We are looking for a company that is robust, has a solid foundation, and aspects that are sure to attract an investor interested in diversity and returns. Dalio bought 199,649 shares of TPX in the first quarter. This was a new position for Bridgewater, but it was an important one; The current share price is valued at $ 7.24 million. Among the bulls was five-star Piper Sandler analyst Peter Keith, who emphasized the safety of the TPX investment. “TPX’s competitive position remains at an all-time high, the household industry has never been better, the consumer is in great shape, and International must show a sequential improvement in trends through 2022. While supply chain constraints have caused some disruption, you expect TPX headwinds moderate considerably by the end of the second quarter, ”Keith said. To that end, Keith ranks TPX on Overweight (i.e. buy), giving him a price target of $ 50, indicating a one-year hike of ~ 40%. (To see Keith’s record, click here) Wall Street clearly agrees with Keith here, as the eight stock valuations in the file include 6 buy and only 2 hold ratings, for a strong buy consensus rating. The trading price is $ 35.83, the average target price of $ 46 indicates a rise of 28% from that level. (See TPX stock analysis at TipRanks) To find good stock trading ideas with attractive valuations, visit the Best Stocks to Buy from TipRanks, a newly launched tool that unites all the stock insights for TipRanks. Disclaimer: The opinions expressed in this article are only those of featured analysts. The content is intended for informational use only. It is very important to do your analysis before making any investment.