When billionaire financier Ray Dalio takes a step, Wall Street draws attention. Dalio, who began working on the floor of the New York Stock Exchange trading commodity futures, founded the world’s largest hedge fund, Bridgewater Associates, in 1975. With the company managing approximately $ 140 billion in global investment and Dalio’s own net worth reaching $ 17 billion, he has gained legendary status on Wall Street. Summary of its success, Dalio has three pieces of advice for investors. First, diversify. Keeping a wide range of stocks in the portfolio, from several sectors, is the safest way to invest well. Second, do not think that rising markets will rise forever. This is Dalio’s variation on an old saw that past results do not guarantee future returns. Dalio will tell you that all the strong past returns really guarantee are current high prices. And finally, Dalio tells investors, “Do the opposite of what your instincts are.” Or put another way, do not follow the crew, because thinking often leads to suboptimal results. When we looked at Dalio to invest in inspiration, we used TipRank’s database to find out if three stocks that the billionaire recently added to the fund represent compelling games. According to the platform, analysts believe they do, with all choices earning “Strong Buy” consensus ratings. Linde PLC (LIN) The first new position is in Linde, the world’s largest industrial gas production company, regardless of whether it is calculated on the basis of revenue or market shares. Linde produces a range of gases for industrial use and is the dominant supplier of argon, nitrogen, oxygen and hydrogen, together with niche gases such as carbon dioxide for the soft drink industry. The company also manufactures gas storage and transfer equipment, welding equipment and refrigerants. In short, Linde embodies Dalio’s “diversify” dictum. Linde’s industry leaders and key products helped the company jump back from the corona crisis. The company’s revenues decreased during the first half of the year, but grew during the second half of the year and reached levels before the corona during Q3 and exceeded these levels during Q4. In a sign of confidence, the company kept its dividend stable during the “corona year” to 96 cents per ordinary share – and in its latest Q1 declaration, Linde raised the payment to $ 1.06 per share. This is annualized to $ 4.24 and gives a return of 1.7%. The key point here is not the modest return, but the company’s confidence in the security of its positions, which makes it possible to keep a steady dividend at a time when many peers are reducing profit sharing. It is therefore not surprising that an investor like Dalio would be interested in a company like Linde. The billionaire’s fund raised 20,149 shares during the fourth quarter, worth $ 5.05 million in current prices. Assessing Linde for BMO, analyst John McNulty expresses his confidence in Linde’s current performance. “LIN continues to implement its growth strategy to drive solid double-digit profit growth, especially without requiring further macro improvements. In our view, the management’s 11-13% guide for 2021 is still conservative driven by upcoming projects, continued pricing, efficiency gains and solid repurchases with In addition, the solid FCF position gives them plenty of dry powder for M&A, de-cap, etc. We believe that LIN is ready to continue to surprise investors and surpass the wider group even in a cyclical market. largest global industrial gas company, “said McNulty. In line with his bullish comments, McNulty classifies LIN as a buy, and its $ 320 price target represents an increase of ~ 28% for the coming year. (To see McNult’s record, click here) Wall Street analysts agree on the quality of Linde’s shares, as evidenced by the 15 Buy reviews that outperform 3 Hold. This gives the stock its Strong Buy analyst agreement. Shares are priced at $ 250.88, and their average price target of $ 295.73 indicates that they have a growth of ~ 18% going forward. (See LIN share analysis on TipRanks) BlackRock (BLK) Next up is the world’s largest asset manager. BlackRock has over $ 8.67 billion in assets under management. The company is one of the dominant index funds in the US financial scene and had sales of $ 16.2 billion last year with a net income of $ 4.9 billion. BlackRock’s latest Q4 report shows its strength, as far as the numbers can. EPS was $ 10.02 per share, a 12% sequential gain and 20% compared to the same period last year. Quarterly revenue of $ 4.8 billion increased by 17% annually. The full-year top line increased by 11% from 2019. BlackRock achieved all this even when the corona crisis leveled the economy during the first half of the year. During the first quarter of this year, BlackRock declared its regular quarterly dividend and increased the payment by 13% to $ 4.13 per ordinary share. With an annual payment of $ 16.52, this gives a return of 2.3%. The company has kept the dividend reliable for the past 12 years. Not wanting to miss a convincing opportunity, Dalio’s fund pulled the trigger on 19,917 shares and gave it a new position in BLK. The value of this new addition? More than $ 14 million. Analyst Brian Bedell, who covers BLK for Deutsche Bank, writes: “We see 4Q results as very good with strong long-term net inflows over their products, which we expect to continue despite a non-recurring flow of $ 55 billion of low-priced stock index assets expected during 1H21 mgmt. said would have a minimal impact on base fee revenue. In addition, the total net inflow led to an annual organic base management growth of 13%, a quarterly record, to an annual long-term organic management growth of 7%. We expect organic basic fee growth to exceed organic AuM growth until 2021, which is driven by a flow mix that is skewed towards higher fee products for now. For this purpose, Bedell rates BLK a Buy and its price target of $ 837 suggests that the stock has ~ 18% up ahead. (To see Bedell’s track record, click here) The analyst’s consensus tells a very similar story. BLK has received 6 Buy ratings in the last three months against a single Hold – a clear sign that analysts are impressed by the company’s potential. Shares are sold for $ 710.11 and the average price target of $ 832.17 gives the stock a 17% upward potential. (See BLK stock analysis at TipRanks) AbbVie, Inc. (ABBV) AbbVie is a big name in the pharmaceutical industry. The company is the manufacturer of Humira, an anti-inflammatory drug used in the treatment of a wide range of chronic diseases including rheumatoid arthritis, Crohn’s disease and psoriasis. The company’s other immunological drugs, Skyrizi and Rinvoq, were approved by the FDA in 2019 as treatments for psoriasis and rheumatoid arthritis, respectively, and saw total sales of $ 2.3 billion last year. AbbVie expects these drugs to “fill the gap” in profits when the Humira patents expire in 2023, with up to $ 15 billion in sales by 2025. Humira is currently the main driver of AbbVie’s immunology portfolio, providing $ 19.8 billion of the portfolio $ 22.2. billion in annual revenue and a significant portion of the company’s total sales. For the full year 2020, in all divisions, AbbVie saw $ 45.8 billion in revenue, with an adjusted diluted profit of $ 10.56. In addition to its high-profile anti-inflammatory line, AbbVie also has a “stable” of long-established drugs on the market. As an example, the company owns Depakote, a common remedy for seizures. AbbVie also maintains an active research pipeline with many drug candidates undergoing studies in immunology, neuroscience, oncology and virology. For investors, AbbVie has a long-term commitment to return profits to shareholders. The company has an eight-year history of holding a reliable – and growing – dividend. In the latest declaration, made this month for a payment to expire in May, AbbVie raised the dividend by 10% to $ 1.30 per ordinary share. At $ 5.20 on an annual basis, this gives a return of 4.9%. Again, we look at layers that embody some of Dalio’s advice. By operating the trigger on ABBV during the fourth quarter, Dalio’s companies bought 25,294 shares. At current valuation, this is worth $ 2.66 million. Leerink analyst Geoffrey Porges covers ABBV and is impressed with how the company is preparing in advance for the loss of American exclusivity on its best-selling product. “Between ABBV’s ex-Humira portfolio growth path and a broad portfolio of catalysts over early, middle and late stage assets, it is difficult to find a biopharma company that is better positioned, even with its looming LOE. ABBV is prepared for 2023 and has growth-driving drivers to drive better than the industry’s average top- and bottom-line growth during the period before (2021-2022) and after (2024-2028) 2023, ”said Porges. Porges gives ABBV an Outperform (ie Buy) value and sets a price target of $ 140 which indicates room for 33% one-year upward. (To see Porge’s results, click here) In total, there are 10 reviews of ABBV shares, and 9 of them are for sale – a margin that makes the analyst’s consensus assessment a strong buy. The stock is trading at $ 105.01 and has an average price target of $ 122.60. This indicates an increase of ~ 17% over the next 12 months. (See ABBV’s stock analysis on TipRanks) To find great ideas for stocks trading at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a recently launched tool that unites all of TipRanks’ stock insights. Disclaimer: The views expressed in this article are solely those of analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investments.
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