Billionaire Ken Fisher sees a bullish tailwind for stocks – here are two names he’s betting a lot on

Billionaire Ken Fisher sees a bullish tailwind for stocks - here are two names he's betting a lot on
Ken Fisher

Ken Fisher

History books show that the nine months beginning in October of the midterm election year proved to be the most profitable period in the stock market. Given the stock market’s recorded gains in the nine months since last October, this trend has re-emerged as expected.

It’s a period that billionaire Ken Fisher has called a “midterm miracle”. The nice thing about this time frame, Fisher says, is that it’s usually followed by another strong period, if not quite as productive. Fisher uses a term for this as well, calling it “stretched broth.”

So why is that? “The legislative quiet that follows the midterms — whether it’s the president’s enemies taking back control of Congress, or Congress being split between two parties — sets off the uncertainty over controversial new laws that always create winners and losers,” explained the founder of Fisher Investments. The political shouting is still there, but the big bills aren’t going anywhere. Political risk aversion goes down, weighing on stocks.”

“While inflation is slowly but surely receding and slow growth is defying recession fears, stagnation will help us remain in positive territory through 2024,” Fisher summed up.

So, which stocks does Fisher, with an estimated net worth of around $6.9 billion, think has more juice in right now? using TipRanks database We got the lowdown on a couple of stocks he’s been busy adding to his portfolio lately. And it turns out, it’s not only Fisher who thinks these stocks are worth the bet; Both are rated Strong Buys by the analyst consensus. Let’s find out why.

united health groupUnited nations)

For the first Fisher-backed name, we’ll start with a healthcare giant. UnitedHealth is a well-known and diversified healthcare organization that provides a broad range of services and solutions to individuals, employers and government organizations.

The company boasts a significant presence both nationally and globally and comprises of two primary business divisions: UnitedHealthcare and Optum. UnitedHealthcare is a major health insurance company that offers a range of health coverage options to individuals, families and businesses. This segment is responsible for the majority of revenue. On the other hand, Optum is focused on delivering innovative healthcare solutions and services that support technology and data analytics to improve healthcare delivery and improve outcomes.

This is a huge operation, as the company was one of the 10 largest companies in the world by revenue and the largest healthcare company by revenue, bringing in $324 billion last year.

UnitedHealth is on track to surpass that this year. In the most recent reported quarter, for Q2 ’23, net profit reached $92.9 billion, an annual increase of 15.6%, while exceeding expectations by about $1.94 billion. There was potential cadence as well, earnings per share of $6.14 beat consensus estimates by 16 cents.

Further, looking ahead, the company has narrowed its full-year adjusted net profit forecast from $24.50 to $25.00 to $24.70 to $25.00 per share, compared to consensus of $24.7.

UnitedHealth impressed the likes of Ken Fisher, as his company bought 1,548,224 shares in the second quarter. This brings the total holding to 1,561,174 shares, valued at approximately $800 million.

Reflecting Fisher’s confidence, Raymond James analyst Jon Ransom believes the latest version provides evidence of strong UN implementation.

“Even amidst a challenging utilization background, UN managed to pull off another win and increase the quarter, albeit with the help of a trio of investment income, cost optimization, and buybacks. We believe UN effectively reset expectations in June,” the five-star analyst explained. , and that conservative 2024 bids present potential upside, while limiting the downside if medical cost trends remain elevated.

In gauging its stance, Ransom UN rates it a Strong Buy along with the $630 price target. Inclusion for investors? Up 24% from current levels. (To view the Ransom log, click here)

Of the 18 UN Analyst Reviews submitted over the past three months, two remain on the sidelines while the rest are positive, making the consensus view here a Strong Buy. Moving on to the average target of $571.53, a year from now the shares will be trading for a premium of about 12%. (be seen UnitedHealth stock forecast)

Black Rock Corporation (BLK)

From one giant industry to another. BlackRock is an American multinational investment company and, in fact, with over $9.4 trillion in assets under management (AUM), it is the largest asset management company in the world.

With a broad range of investment and financial services offerings, BlackRock operates on a global scale, with 70 offices in 30 countries, clients in 100 countries, and serves institutional, corporate, government and individual investors. The company is known for its risk management expertise, innovative investment strategies, and its use of technology to enhance its financial services, with many major financial institutions using Aladdin software to track their investment portfolios.

This finance giant generated $4.46 billion in revenue in the second quarter, and while that’s down 1% from a year earlier, mainly due to stock market moves, the number meets Street expectations. At the other end of the scale, an adjective. Earnings per share of $9.28 did better than the $8.42 expected on Wall Street. In the first quarter, assets under management rose to $9.43 trillion, an increase of $831 billion since the end of 2022.

The company also bought back $375 million worth of stock during the quarter, a move investors always love to see.

One of those investors is Ken Fisher, who raised his stake in BLK by 6% in the quarter, with 92,560 shares added. His total holdings now total 1,934,985 shares, worth over $1.33 billion at the current price.

BlackRock also has a fan in Morgan Stanley’s Michael Cyprys, who highlights the various reasons investors are behind the name.

“BLK’s breadth of capabilities, unrivaled distribution prowess and major branding are uniquely positioned for the company to capture key growth areas over the next several years in fixed income, cash management, private markets and Aladdin technology. This should result in increased assets under management for the company $9 trillion today to $10 trillion in the next few quarters, and exceed $15 trillion in 5 years,” the analyst said.

“BLK’s size, diversification and disciplined investments across market cycles and efficient operations with an emphasis on expenses should support continued organic growth and margin expansion. We also see opportunities for inorganic growth to drive upside, if BLK takes advantage of the imbalance to accelerate growth, similar to the way it implemented in past (for example, BLK’s transformative $15.2 billion acquisition of BGI during 2009),” Cyprys continued.

These comments support Cyprys’ Overweight (i.e. Buy) rating on BLK, while its $888 price target provides a potential upside in the stock of 28% for the year ahead. (To see Cyprys’ track record, click here)

Elsewhere on Wall Street, the stock had 8 more Buys and 1 Hold, culminating in a Strong Buy consensus rating. The forecast calls for a 12-month return of 18%, factoring in an average hourly target of $817.5. (be seen BlackRock stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best stocks to buya newly launched tool that unites all of TipRanks’ equity insights.

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.

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