Latest news with #MatrixAssetAdvisors
Yahoo
28-05-2025
- Business
- Yahoo
What Makes PepsiCo (PEP) an Investment Bet in a Volatile Market?
Matrix Asset Advisors, an asset management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. After two years of gains exceeding 20%, the stock market rally ended in February when the president intensified his tariff threats. Technology and Growth stocks drove the stock market's first-quarter decline. Matrix's portfolios performed well during a challenging quarter. The Matrix Dividend Income portfolio recorded a slight positive return, while the LCV portfolio, which is more exposed to Technology, experienced a modest decline. Matrix's Large Cap Value Portfolio (LCV) was down low single digits in Q1, surpassing the S&P 500® Index's loss but behind the Russell 1000 Value's 2.14% gain. Matrix Dividend Income (MDI) started the year positively, growing low single digits in Q1, ahead of both the S&P 500®'s loss and the Russell 1000® Value Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as PepsiCo, Inc. (NASDAQ:PEP). PepsiCo, Inc. (NASDAQ:PEP) is an American multinational company that manufactures, markets, and distributes various beverages and convenient foods. The one-month return of PepsiCo, Inc. (NASDAQ:PEP) was -3.11%, and its shares lost 23.24% of their value over the last 52 weeks. On May 27, 2025, PepsiCo, Inc. (NASDAQ:PEP) stock closed at $131.37 per share with a market capitalization of $180.12 billion. Matrix Asset Advisors stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2025 investor letter: The market's volatility during the quarter gave us the opportunity to be more active than usual with portfolio buys and sells. On the buy side, we added two new positions to the portfolio, Generac and PepsiCo. PepsiCo, Inc. (NASDAQ:PEP) is a leading snack and beverage company. We know the company well, having owned it several times, buying during pullbacks, and selling when we thought the stock was fully priced. The current opportunity to buy the shares for our LCV portfolio is the result of a deceleration in the company's top-line growth and concerns about the potential impact on demand for the company's core products because of the new weight loss drugs and the opposition to soda and processed foods by the new secretary of health and human services. This well-managed company, with a history of steady earnings and dividend growth, is a good investment in what we expect to be a volatile stock market. At its current price, the dividend yield is 3.6%. A close up of a glass of a refreshing carbonated beverage illustrating the company's different beverages. PepsiCo, Inc. (NASDAQ:PEP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held PepsiCo, Inc. (NASDAQ:PEP) at the end of the first quarter, which was 69 in the previous quarter. While we acknowledge the potential of PepsiCo, Inc. (NASDAQ:PEP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered PepsiCo, Inc. (NASDAQ:PEP) and shared the list of best dividend stocks with high yields. Mar Vista U.S. Quality Select Strategy also commented on PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2025 investor letter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Does Target Corporation (TGT) Stock Offer Strong Upside from the Current Price?
Matrix Asset Advisors, an asset management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. After two years of gains exceeding 20%, the stock market rally ended in February when the president intensified his tariff threats. Technology and Growth stocks drove the stock market's first-quarter decline. Matrix's portfolios performed well during a challenging quarter. The Matrix Dividend Income portfolio recorded a slight positive return, while the LCV portfolio, which is more exposed to Technology, experienced a modest decline. Matrix's Large Cap Value Portfolio (LCV) was down low single digits in Q1, surpassing the S&P 500® Index's loss but behind the Russell 1000 Value's 2.14% gain. Matrix Dividend Income (MDI) started the year positively, growing low single digits in Q1, ahead of both the S&P 500®'s loss and the Russell 1000® Value Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was 0.30%, and its shares lost 34.35% of their value over the last 52 weeks. On May 27, 2025, Target Corporation (NYSE:TGT) stock closed at $96.99 per share with a market capitalization of $44.069 billion. Matrix Asset Advisors stated the following regarding Target Corporation (NYSE:TGT) in its Q1 2025 investor letter: "The market's Q1 volatility provided opportunities to take profits on strength while very slowly redeploying the proceeds. With our larger-than-usual sales and scale-backs, we entered the current quarter with a higher-than usual cash balance, allowing us to add to some laggards and start a new position in Target Corporation (NYSE:TGT), a name we have held before in the portfolio. As we write this commentary, more stocks are nearing compelling levels, and we expect to accelerate our buying. A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the first quarter, which was 56 in the previous quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Target Corporation (NYSE:TGT) and shared the list of stocks on Jim Cramer's radar. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-03-2025
- Business
- Yahoo
Is The Allstate Corporation (ALL) the Most Undervalued Large Cap Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where The Allstate Corporation (NYSE:ALL) stands against other most undervalued large cap stocks to buy now. On March 4, David Katz, Chief Investment Officer at Matrix Asset Advisors, joined 'The Exchange' on CNBC to share his perspective on the current state of the bull market and what February's mixed action and sector rotation might signal for the rest of the year. Katz acknowledged that while people might not want to hear it, the volatility seen in February is likely to persist throughout the year, with both upside and downside movements. He emphasized that this creates opportunities for investors but also necessitates caution. Katz highlighted several positive factors supporting the market, which included a strong economy and solid corporate performance. However, he expressed concerns about certain policies from the administration, such as tariffs, immigration, and the relationship with the Fed. While these issues have been largely ignored by the market so far, Katz warned that they could eventually lead to a 3-5% correction. Despite this, he remained optimistic about the economy's ability to navigate these challenges and recommended buying into market dips rather than chasing rallies. To support his sentiment, Katz pointed to companies that have already experienced significant corrections and are positioned to perform well regardless of broader market movements. He highlighted their strong fundamentals, attractive valuations (most trading at under 13-14 times earnings), and good outlooks. He also noted that last year's market leaders have slowed significantly, while sectors that underperformed are beginning to show meaningful improvement, a trend he expects to continue. This sector rotation suggests that investors should be prepared to adapt their strategies as different sectors gain momentum throughout the year. We used the Finviz stock screener to compile a list of the top stocks trading between $10 billion and $200 billion. We then selected stocks with a forward P/E ratio under 15 and made a list of 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A financial advisor giving advice to a couple, illustrating the personal finance and insurance products the company offers. Forward Price-to-Earnings Ratio as of March 4: 11.4 Number of Hedge Fund Holders: 71 The Allstate Corporation. (NYSE:ALL) is a US and Canadian insurance provider. It delivers a range of property and casualty, health, and protection products (which includes auto, home, life, and supplemental) insurance. It also provides consumer protection plans, roadside assistance, and analytics solutions. These are distributed through agents, online platforms, and various partnerships. The company's Protection Plans segment offers protection for consumer electronics and appliances. The segment saw policy growth in 2024 and now covers ~160 million policies, which is up by 60 million since 2019. This refers to an increase in the number of active insurance contracts the company holds. In Q4 2024, revenues for this segment reached $528 million, which was a 20.3% increase year-over-year. It hit a revenue of ~$2 billion in the full year 2024, which shows a 23.9% CAGR since 2019. This was driven by both domestic and international growth. The Allstate Corporation (NYSE:ALL) is actively investing in Protection Plans, which is highlighted by the acquisition of Kingfisher to enhance mobile phone protection. Kingfisher specializes in mobile device lifecycle optimization by extending device lifespan through services like refurbishment and reuse. Diamond Hill Large Cap Concentrated Strategy stated the following regarding The Allstate Corporation (NYSE:ALL) in its Q2 2024 investor letter: 'Among our bottom Q2 contributors were Abbott Laboratories, ConocoPhillips and The Allstate Corporation (NYSE:ALL). Allstate, one of the US's largest auto and homeowners' insurance providers, has seen the pace of premium price increases decelerate, weighing on investor sentiment around the stock. However, the company's underlying fundamentals are intact, margin expansion should continue through the year, and the outlook remains constructive.' Overall, ALL ranks 11th on our list of most undervalued large cap stocks to buy now. While we acknowledge the potential of ALL as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-03-2025
- Business
- Yahoo
Is JD.Com Inc. (JD) the Most Undervalued Large Cap Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Inc. (NASDAQ:JD) stands against other most undervalued large cap stocks to buy now. On March 4, David Katz, Chief Investment Officer at Matrix Asset Advisors, joined 'The Exchange' on CNBC to share his perspective on the current state of the bull market and what February's mixed action and sector rotation might signal for the rest of the year. Katz acknowledged that while people might not want to hear it, the volatility seen in February is likely to persist throughout the year, with both upside and downside movements. He emphasized that this creates opportunities for investors but also necessitates caution. Katz highlighted several positive factors supporting the market, which included a strong economy and solid corporate performance. However, he expressed concerns about certain policies from the administration, such as tariffs, immigration, and the relationship with the Fed. While these issues have been largely ignored by the market so far, Katz warned that they could eventually lead to a 3-5% correction. Despite this, he remained optimistic about the economy's ability to navigate these challenges and recommended buying into market dips rather than chasing rallies. To support his sentiment, Katz pointed to companies that have already experienced significant corrections and are positioned to perform well regardless of broader market movements. He highlighted their strong fundamentals, attractive valuations (most trading at under 13-14 times earnings), and good outlooks. He also noted that last year's market leaders have slowed significantly, while sectors that underperformed are beginning to show meaningful improvement, a trend he expects to continue. This sector rotation suggests that investors should be prepared to adapt their strategies as different sectors gain momentum throughout the year. We used the Finviz stock screener to compile a list of the top stocks trading between $10 billion and $200 billion. We then selected stocks with a forward P/E ratio under 15 and made a list of 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A wide and imposing view of a supply chain distribution center, illustrating the company's technology capabilities. Forward Price-to-Earnings Ratio as of March 4: 9.75 Number of Hedge Fund Holders: 78 Inc. (NASDAQ:JD) is a Chinese supply chain-based technology and service provider. It offers products like electronics, home appliances, and general merchandise. It also offers online marketplace services, marketing solutions, and omni-channel capabilities. Beyond its core retail operations, it develops and manages logistics infrastructure, provides integrated technology and supply chain solutions, and offers online healthcare services. JD Logistics is a key component of the company's overall success and is building a strong logistics network. In Q3 2024, the segment's revenue grew by 7% year-over-year, with internal revenue up 8% and external revenue up 6%. This growth shows the effectiveness of JD Logistics' efforts to expand its reach and service both Inc. (NASDAQ:JD) and external clients. The company improved its profitability in Q3 through this segment. Non-GAAP operating income saw a 624% year-over-year increase. JD Logistics is expanding globally with doubled warehouse capacity anticipated by 2025. It's investing heavily in smart technologies like AI and automation to enhance efficiency and customer experience. These include such intelligent warehousing systems and 5G-powered smart logistics parks. Ariel Global Fund is highly positive on the company due to its strong performance driven by Chinese stimulus, improved consumer spending, successful diversification strategies, and the ability to capitalize on growth opportunities like home appliance trade-in programs. It stated the following regarding Inc. (NASDAQ:JD) in its Q3 2024 investor letter: 'China-based E-commerce company, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People's Bank of China's (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company's retail operations. Additionally, the company's strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company's strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.' Overall, JD ranks 9th on our list of most undervalued large cap stocks to buy now. While we acknowledge the growth potential of JD as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
