TDG - The Smartest People on Wall Street Are Buying These 3 Stocks -- Should You Follow?
According to 13F filings at the Securities and Exchange Commission (SEC), the number of hedge funds holding stock in toolmaker Stanley Black & Decker (NYSE: SWK) , aerospace-component manufacturer TransDigm (NYSE: TDG) , and industrial-giant General Electric (NYSE: GE) increased in the fourth quarter. Is that reason enough to buy the stocks? Let's take a closer look at all three stocks to find out.
The toolmaker's earnings have contained a lot of moving parts in recent years. On the downside, it was hit with $1 billion worth of cost headwinds from tariffs, adverse foreign-exchange movements, and cost increases. On the upside, the surge in do-it-yourself (DIY) interest caused by the stay-at-home measures led to soaring tool sales in the second half of 2020.
As such, management is expecting sales to increase by 27%-32% in the first half of 2021, but then sales are expected to fall by 12% to 7% in the second half when the company comes up against very tough comparisons from 2020. It's somewhat confusing, but investors need to keep an eye on the big picture. That's a good idea because it's a very attractive one.
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The Smartest People on Wall Street Are Buying These 3 Stocks -- Should You Follow?