June 22, 2021
  • June 22, 2021
  • Home
  • Fund


By on March 11, 2021 0

Tip Ranks

Billionaire George Soros collects these 3 “Strong Buy” shares

Some investors gain legendary status, far surpassing their peers thanks to a combination of luck and success. Perhaps no one exemplifies this more than George Soros, the Holocaust survivor who, after the war, earned a doctorate from the London School of Economics and entered banking to make his mark. It was hugely successful. The hedge fund he founded, Soros Fund Management, achieved an average annualized return of 33% from 1970 to 2020, making it the most successful hedge fund in history. Soros’ biggest hit single came on September 16, 1992, when he “broke the Bank of England”. He had taken a short position in the British pound, leveraging $ 10 billion, and when the pound fell in response to the change in policy, he personally made $ 1 billion in a single day. Soros hasn’t always been right in his financial calls, but he’s right more often than not. He is also known for his bon mot when it comes to talking about trading. “It’s not whether you’re right or wrong,” Soros was quoted as saying, “but how much money you make when you’re right and how much you lose when you’re wrong.” With this in mind, we decided to look at Soros Fund Management’s recent activity for inspiration. By running three stocks raised by the fund during the first quarter through the TipRanks database, we found that the analyst community is on board as well, as each has a “Strong Buy” consensus rating. Farfetch, Ltd. (FTCH) We will start with an online retail stock, Farfetch, a company specializing in the sale of luxury goods and brands. Farfetch is a truly international company, founded in Portugal, headquartered in London and with offices in New York and LA, Tokyo and Shanghai and Brazil. Like many technology-oriented companies, Farfetch made a loss, but in the first quarter of this year the company made a sharp turnaround towards profitability. The 1Q21 earnings report showed an after-tax profit of $ 516.7 million, compared to a quarterly loss of $ 79.2 million a year ago. The company disclosed that this gross profit included a one-time non-monetary benefit of $ 660 million “resulting from the lower impact of the share price on items held at fair value and remeasurements.” Total transaction revenue was reported at $ 485 million, up 46% year-on-year and higher than analysts forecast of $ 457 million. A key metric, the gross merchandise value of orders processed on the company’s platform, increased 49% year-on-year to $ 915.6 million. Farfetch’s success stems from a strong user base. The company boasts over 3 million active customers and operations in 190 countries. The sellers on the platform have made available over 1,300 luxury brands. Even after a decline in stock value during the first half of 2021, the stock is still up 234% over the past 12 months. Among the FTCH fans is Soros. In his most recent disclosure, Soros revealed that his fund bought 125,000 shares of FTCH, a holding worth more than $ 5.5 million. Turning to the analyst community, Stephen Ju, a 5-star analyst at Credit Suisse, rates FTCH as Outperform (aka Buy) along with a price target of $ 78. analyst came true. (To see Ju’s track record, click here) “We have a favorable view towards the company keeping EBITDA guidance adjusted as Farfetch will reinvest major top-line contributions towards customer acquisition, supporting long-term adoption rates term. We model ~ 700,000 new customers for 2021, ~ 600,000 for 2022, and as of 2023, our expectations also remain unchanged at ~ 1.2 million to 1.5 million, “Ju said. The analyst summed up: “Our investment thesis points remain: 1) the large $ 300 billion addressable market remains fragmented and underpenetrated, 2) its protection from competition from larger-cap online competitors, 3) exposure to increasing adoption of high-end assets. luxury in APAC and emerging markets. “Most analysts support Ju’s confidence in the online fashion company, as TipRanks’ analysis shows FTCH as a strong buy. Based on 8 analysts surveyed over the past 3 months, 6 they rate the stock as Buy, while 2 gives it a Hold. The 12-month average price target is $ 60.63, marking an increase of approximately 37% from current levels. (See FTCH Stock Analysis on TipRanks) Coursera (COUR) The pro The nth title we’re reviewing, Coursera, is a MOOC company – a huge provider of open online courses. This niche leverages the size and reach of the Internet to make a wide range of high-level university courses available to the masses. Coursera is a leader in the sector and since its foundation in 2012 has provided more than 4,000 courses from over 200 universities, in more than 30 degree programs, and at lower costs than in-person lessons. Through Coursera, students can take classes at top-tier schools such as Imperial College London, the University of Illinois Urbana-Champaign, the University of Michigan, and Johns Hopkins. The company boasts that over 77 million students have used its services. Although the company is 9 years old, it is new to public markets; Coursera held its IPO at the end of March this year. It made available 15.73 million shares on the NYSE, at an opening price of $ 33. This was the high end of the initial price range, which was set between $ 30 and $ 33. Overall, the IPO raised $ 519 million, before expenses. In early May, Coursera released its first quarterly report since it was made public. The report showed $ 88.4 million in total revenue, a 64% year-over-year increase. The company’s gross profit, at $ 49.5 million, was up 71% from the quarter a year ago. George Soros saw an opportunity in this IPO and his fund raised 105,000 shares of the company. This new position is valued at ~ $ 4 million at current share prices. Among the bulls is Needham’s 5-star analyst Ryan MacDonald, who lays out a clear and upbeat case for Coursera shares. “Given the growing role of automation, widening the skills gap and the shift to online learning, we believe Coursera’s comprehensive platform will help them earn shares in a large TAM between $ 47 billion and $ 50 in size. While the COVID-driven favorable wind to registered student growth in FY20 creates a difficult consumer segment comp in FY21, we believe Coursera’s efficient GTM movement and the shift to more value enterprise offerings and grades high can drive sustained growth of 25% + and gross margin expansion, “MacDonald noted. To that end, MacDonald estimates that COUR shares a Buy and its $ 56 price target indicates confidence in a 47% rally over the next 12 months. (To see MacDonald’s track record, click here) In its short time on the stock exchange, COUR collected 14 analyst reviews, with a breakdown of 12 out of 2 purchases taken to support the Strong Buy consensus rating. The shares are trading for $ 38 and their $ 54.67 average price target implies a 44% rise over a year. (See COUR stock analysis on TipRanks) Sotera Health (SHC) The last part of our list of new George Soros positions is Sotera Health, a holding company whose subsidiaries offer a range of consulting, laboratory testing and sterilization services in the healthcare sector. Sotera’s businesses belong to over 5,800 healthcare clients in over 50 countries. The company boasts 13 laboratories capable of performing more than 800 tests and 50 sterilization systems. Sotera’s customer base includes 75 of the top 100 medical device manufacturers and 8 of the top 10 pharmaceutical companies. SHC’s stock went public on November 24 last year, in an IPO that sold 53.6 million shares and raised $ 1.2 billion. The capital raised was used to repay the existing debt. The company has worked diligently to reduce debt levels and in the 1Q21 report said it has total debt of $ 1.87 billion and available cash of $ 108 million. Net revenue in the first quarter was $ 212 million, up 13% from the prior year. Net income showed a strong gain, going from a loss of 1 cent per share a year ago to an EPS earnings of 4 cents. In the first quarter, Soros took a new position in Sotera, purchasing 179,274 shares of the stock. At current share prices, this holding is worth over $ 4.3 million. Tycho Peterson, a 5-star analyst at JPMorgan, appreciates SHC and rates the stock as overweight (aka Buy). Its price target of $ 35 suggests a 45% rise from current trading levels. (To see Peterson’s track record, click here) Supporting his position, Peterson writes: “First quarter results were generally good and, while the indications remain unchanged, should provide a path to the company’s diversified operating platform. , persistent multi-year contracts, an efficient pricing strategy and high regulatory oversight, which on the whole support its broad competitive moat, with FCF supporting de-leveraging … “Overall, Street is unanimous in its outlook on Sotera shares; the stock has 8 recent positive reviews supporting the consensus rating of Strong Buy analysts. The shares are trading for $ 24.06 and their average price target of $ 31.75 implies a one-year rise in the ~ 32%. (See SHC Stocks Analysis on TipRanks) To find good ideas for trading stocks at attractive valuations, visit TipRanks’ Best Stocks to Buys, a tool just launched that combines all of TipRanks’ equity insights. Disclaimer: The views expressed in this article are solely those of the analysts present. The content is to be used for informational purposes only. It is very important to do your own analysis before making any investments.