Billionaire Ken Griffin is betting on these 3 “Strong Buy” stocks
Stocks have been rising since late October, supported by an election that could offer stability and the news that effective vaccines against the novel coronavirus are closer than we dared to think. The rapid changes in the market are enough to make investors dizzy – or at least, to make them turn to the experts to understand the financial landscape. At times like these, captions can offer some clues. We are referring to the people who transformed the way we play the investing game, namely Ken Griffin. Ken Griffin has a knack for math and finance. Since he started trading stocks from his dorm at Harvard in 1987, Griffin has amassed a personal fortune of over $ 15 billion – and made a name for himself on Wall Street as a giant of the world. hedges. Although he is personally reclusive, his investment decisions remain public, and following Ken Griffin’s stock choices is a viable investment strategy. Griffin notes the market drop last winter and describes the general rebound since March as “a macro trader’s dream.” Looking at the elections, he sees the results as a clear positive for the markets. He said a divided government, paired with a narrower Democratic majority, will empower the centrists and help avoid “crippling” tax increases. With that in mind, we wanted to take a closer look at three stocks that Griffin Citadel’s fund recently picked up. As we scoured the TipRanks database, we learned that each has a consensus “Strong Buy” rating from the analyst community and huge upside potential. Kadmon Holdings (KDMN) First of all, we have Kadmon, which is focused on developing drug treatments for immune disorders and fibrotic diseases, and like many clinical research companies, the investment point here is first and foremost a matter of potential rather than benefits. Kadmon has two drugs in development – Belumosudil (KD025), which is in advanced testing as a treatment for chronic graft versus host disease (cGVHD) and systemic sclerosis; and investigational KD033, which is being investigated as an immunotherapy for cancerous tumors. A New Drug Application (NDA) has been submitted to the FDA for Belumosudil in cGVHD, and is currently under review. Meanwhile, a Phase 2 systemic sclerosis study continues and a small, open-label Phase 2 study is expected to start in 1Q21. In addition, KD033 is currently in a phase 1 study in metastatic and / or locally advanced solid tumors. An active pipeline – especially one where drug candidates progress steadily – is sure to grab the attention of investors. Among the fans is Ken Griffin. 924,309 shares were repurchased by Citadel in the third quarter, the total position now reaching 6,587,531 shares. The position is valued at over $ 24 million. Indeed, thanks to the company’s promising pipeline and the share price of $ 3.80, Mizuho analyst Mara Goldstein believes investors should participate in the action. “Belumosudil, a new inhibitor of ROCK2, has successfully completed a pivotal program (ROCKSTAR) in chronic graft versus host disease and a submission to the FDA has been initiated. We consider that this indication generates US revenue of $ 628 million in 2030, which is not fully appreciated in the valuation of KDMN, in our opinion. […] We also see potential opportunities from additional guidance and other candidates holding valuation inflection potential, ”noted Goldstein. To that end, Goldstein rates KDMN a buy with a target price of $ 13. This target reflects Goldstein’s confidence in KDMN’s ability to climb 246% from current levels. (To see Goldstein’s balance sheet, click here) Do the other analysts agree? They are. Only buy ratings, 4, in fact, have been issued in the past three months. Therefore, the message is clear: KDMN is a strong buy. Considering the average price target of $ 13.75, stocks could soar 266% next year. (See KDMN’s stock market analysis on TipRanks) K12, Inc. (LRN) Next on our Griffin pick list is K12, a company in the niche of education management organization – or others terms, a provider of school programs and educational resources designed for online learning as an alternative to traditional brick-and-mortar school systems. K12 was founded in 2000, but took off during the corona crisis of 2020, when social lockdown policies steered students towards homeschooling and places online. K12 reported Q3 (FY Q1) revenue of $ 371 million, up 37% from the previous quarter and even more impressive 44.3% year-on-year. The company’s general education activities accounted for $ 313.8 million of this total and were up 34.4% year over year. EPS jumped 150% sequentially, from 12 cents in Q2 to 30 cents in Q3. Clearly Griffin understood the potential of K12 in the current environment, as he purchased 447,703 shares of LRN during the third quarter. Griffin now owns more than 496,000 shares of the company, and that stake is worth nearly $ 11.9 million. Taking an optimistic stance on this stock is analyst Alexander Paris, of Barrington. Paris writes: “Management is cautiously optimistic about its ability to grow as it focuses on student retention (which has steadily improved over the past few years) and its career learning initiatives … investors have been drawn to its strong distance learning model and see the potential benefits of COVID -19 boosting demand for its services in the medium to long term. In line with these comments, Paris attributes an outperformance (ie a buy) to the stock. Its price target of $ 60 shows its confidence in a 150% hike for the coming year. (To see the Paris track record, click here) Again, this is a stock with a unanimous Strong Buy consensus rating, supported by 4 recent analyst reviews. The shares have an average price target of $ 49.33, which suggests a 106% rise from the trade price of $ 24. (See K12 stock market analysis on TipRanks) Overstock (OSTK) Overstock is an online retailer that got its start in the wake of the dot.com bubble twenty years ago; ironically, it started out as an e-commerce company selling the inventory assets of bankrupt e-commerce companies. Today, Overstock is still involved in the fencing segment, but also sells new products in the bedding, furniture and interior design niches. In the last quarter, Overstock broke earnings and revenue estimates. EPS was expected to lose 22 cents, but returned a profit of 50 cents. On the top line, revenue grew 110% year-over-year to $ 731.7 million. Obviously, Overstock has benefited from the corona pandemic which has driven more online retailing, and OSTK stocks have benefited as well. Stock is up an astronomical 707% year-to-date, even after slipping significantly from its peak at the end of August. A low-cost retailer with a strong online presence is an obvious opportunity in the climate current, and Griffin took advantage of that. His new position is OSTK totals 110,281 shares, currently valued at $ 6.3 million. Writing for Piper Sandler, 5-star analyst Peter Keith notes: “[T]Q4 trends “remain strong” suggesting that a continuation of ~ 100% growth for the quarter is very possible. New customer growth was + 141% y / y, and OSTK saw a sequential improvement in its new customer repurchase rate. Net cash position of $ 490 million, representing ~ 18% of market capitalization. We would be aggressive buyers of the stock at current levels. Keith gives OSTK an overweight (i.e. buy) rating, and its price target of $ 140 implies a 145% hike for the next 12 months. (To view Keith’s track record , click here) Overall, Overstock’s consensus strong buy rating is based on 4 buys and 1 wait. The stock is selling for $ 57.10 and the average price target of $ 101 suggests that it has 76% year-on-year growth potential. (See OSTK Stock Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit the Best Stocks to Buy from TipRanks, a newly released tool. launched which brings together all the information about the shares of TipRanks, 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.