At TipRanks, we provide investors with several tools to help them select the right stocks. One such tool is the Top Hedge Fund Managers tool, with which investors can track the investment decisions of leading financial experts. Today, we have focused on two stocks that carry a “Strong Buy” rating and were bought by hedge funds in the last quarter: MGM Resorts (NYSE:MGM) and Lamb Weston (NYSE:LW).
Let’s delve deeper into these two stocks.
MGM Resorts International
MGM Resorts is a global hospitality and entertainment company renowned for its resorts, casinos, and entertainment offerings. The Super Bowl weekend in Las Vegas and the Chinese New Year celebrations in Macau are both expected to have increased customer traffic in the current quarter. Furthermore, MGM’s strategic expansion efforts in the New York market bode well for long-term growth.
As per TipRanks’ database, hedge funds bought 341,100 shares of MGM Resorts last quarter. Several hedge fund managers, including Joel Greenblatt of Gotham Asset Management and Kenneth Tropin of Graham Capital Management, increased their holdings in the stock. Also, the Hedge Fund Confidence Signal is currently Positive.
Is MGM a Buy or Sell?
MGM stock has received 11 Buy and two Hold recommendations for a Strong Buy consensus rating. The analysts’ average price target on MGM stock of $56.08 suggests an upside potential of 18.79%. Shares of the company have gained 28.43% over the past six months. It is noteworthy that MGM Resorts stock carries an Outperform Smart Score of nine.
Lamb Weston Holdings, Inc.
Lamb Weston is an America-based maker of frozen potato products. The company’s near-term prospects look promising owing to improvements in its supply chain, the ramp-up of production capacity at the China facility, and the expansion of operations in Argentina.
Interestingly, LW stock has a Very Positive Hedge Fund Confidence Signal. As per TipRanks’ Hedge Fund Trading Activity tool, hedge funds bought 2.1 million shares of this company in the last quarter. Notably, Andreas Halvorsen from Viking Global Investors and Lee Ainslie from Maverick Capital were among the hedge fund managers who increased their exposure to LW stock.
Is LW Stock a Good Buy?
Lamb Weston stock has received seven unanimous Buy recommendations for a Strong Buy consensus rating. Following a surge of about 16% in its share price over the past six months, the analysts’ average price target on LW stock of $133.14 implies 24.98% upside potential from current levels.
Supporting the bull case, the stock has a Smart Score of “Perfect 10” on TipRanks. Note that shares with this Smart Score have historically outperformed the S&P 500 Index (SPX) by a wide margin.
Concluding Thoughts
Tracking the investment decisions of financial experts seems to be a prudent strategy during uncertain market conditions. For more ideas on Top Expert Picks, investors can visit the TipRanks Expert Center and make informed investment decisions.
Find out which stock the biggest hedge fund managers are buying right now.