Did you ever copy from the smart kid in class and then score straight A’s? Well, now you can replicate this savvy move with top investor trades — and make some money while you’re at it!
By tracking the most popular stocks of investors who consistently outperform the market, you can easily boost your own returns. In order to find these key top investor stocks, we used TipRanks’ Individual Investor Sentiment tool.
This nifty tool enables you to pinpoint the most popular stocks from the best-performing investors in any sector. Even more usefully we can see if top investors are ramping up their holdings over the last month/week, as well as the proportion of the portfolio these investors (on average) dedicate to that stock.
Interestingly, as we will soon discover, investors don’t always agree with the Street- especially when it comes to controversial hot stocks like Tesla Inc (NASDAQ:TSLA).
So without further ado let’s delve in now to these 3 top stock picks:
Tesla’s big ambitions and disruptive potential have clearly struck a chord with top investors. This volatile auto stock boasts a “Very Positive” investor sentiment. Over the last 30 days, the best-performing investors have increased their TSLA exposure by no less than 10.8%.
But the Street does not share this optimism — quite the contrary. Right now, the stock has a hold analyst consensus rating with only six recent buy ratings. This is versus eight hold and nine sell ratings. Meanwhile, the $309 price target suggests big downside potential of 10% from the current share price.
Top Jefferies analyst Philippe Houchois has just slashed his 2018 revenue estimate for Tesla by 14%. He has also cut his fiscal 2018 Model 3 delivery forecast by 35% to just 175,000 units. In a bearish report (entitled “Another Curve Ball”) the analyst reiterates his “sell” rating and $240 price target (30% downside).
And he isn’t feeling overly impressed by CEO Elon Musk’s new merit-based compensation package. Houchois says the new deal sends “mixed messages” and is “overly incentivized on valuation multiples rather than financial performance.”
With NVIDIA Corporation (NASDAQ:NVDA) shares exploding by an incredible 125% in the last year, it’s no surprise that top investors are feeling super bullish. In the last 30 days alone, the number of top portfolios holding NVDA is up by 4.4%. Not only that, these investors dedicate a sizable portion (almost 8%) of their portfolio to this fast-growing chip stock.
However, Susquehanna analyst Christopher Rolland isn’t convinced that the party can last. He calculates that NVDA benefited from approx. $500 million Ethereum-related GPU sales in Q4. This would boost Q4 results and near-term guidance. But ultimately, he sees substantial longer-term risks resulting from this unsustainable mining profitability.
In contrast, Vivek Arya — a five-star analyst — singles out Nvidia as a top pick. He ups his price target to $275 (11% upside). Arya believes there is 1) a large-scale upgrading opportunity 2) continued strength in crypto and 3) upside in high-performance computing. Note that Arya’s approach is paying off with an eye-dropping 94% success rate and 102% average profit across his NVDA stock ratings.
Top investors still have faith in the market-leading power of iPhone maker Apple Inc. (NASDAQ:AAPL). Both in the last week and in the last 30 days, top investors have upped their Apple shareholdings (by 0.5% and 3.9% respectively). Plus Apple tends to make up a considerable chunk — 9% — of these portfolios.
However, the Street is not quite as bullish on AAPL stock as it used to be. The consensus is no longer “Strong Buy” but “Moderate Buy.” Analysts believe iPhone X sales peaked early and say Apple will guide for a lower March quarter than previously expected.
With this in mind, top Atlantic Equities analyst James Cordwell downgraded AAPL to “hold” with a $190 price target. He explains:
“This better than anticipated supply means that a greater proportion of demand was able to be served in the December quarter, leaving March quarter expectations (which were predicated on significant pent-up demand) for ~20% iPhone unit growth now looking somewhat aggressive (~20% iPhone unit growth).”