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Thermo Fisher Scientific, Inc. (TMO) saw growth slow over the past six months. Despite a bear market, the life sciences company still outperformed the S&P500 and rose by approximately 5% compared to the S&P’s loss of about 10% over the past year. Hedge funds sold the stock in the first quarter, but it was still added to the WhaleWisdom Whale 100 index on May 17, 2022.

Thermo Fisher provides medical equipment, analytical instruments, reagents and consumables, software, and services for research analysis, diagnostics, and clinical laboratories. Thermo Fisher formed when the companies Thermo Electron and Fisher Scientific merged in 2006 and has since acquired other businesses to expand its life sciences presence. The company comprises four business segments: Analytical Technologies, Specialty Diagnostics, Life Sciences Solutions, and Laboratory Products and Services. Thermo Fisher was vital in delivering medical treatments during the Coronavirus pandemic. The company supplies specialty diagnostic tools and equipment to pharmaceutical and other healthcare companies to aid in clinical research of the Coronavirus and vaccine and medical treatment manufacturing.

(WhaleWisdom)

Hedge Funds Trim Portfolios

Thermo Fisher saw hedge funds and institutions decreasing holdings in their portfolio in the first quarter of 2022. The aggregate 13F shares held by hedge funds decreased to about 61.5 million from 61.9 million, a change of about 0.6%. Of the hedge funds, 28 created new positions, 133 added to an existing holding, 43 exited, and 179 reduced their stakes. Overall, institutions sold and decreased their aggregate holdings by about 1.3% to approximately 338.0 million from 342.4 million. The long-term 13F metrics between 2005 and 2022 demonstrate that Thermo Fisher’s investment potential maintains an upward trend.

(WhaleWisdom)

Favorable Multi-year Estimates

Analysts expect to see earnings rise through 2023, with a year-over-year estimated increase bringing earnings to $24.50 per share by December 2023, up from $22.79 for 2022. Revenue forecasts are also encouraging, with revenue expected to increase to $44.5 billion by 2023, up from a predicted $42.5 billion by 2022.

(WhaleWisdom)

Favorable Outlook

Thermo Fisher’s earnings estimates for 2022 and 2023 are encouraging for investors. While growth may have recently slowed, healthcare spending continues to rise, and the life sciences giant is well-positioned to respond to emerging needs. The stock’s trends suggest a long-term opportunity for investors.

Johnson & Johnson Co. (JNJ) has seen slower growth over the past year but, in recent months, has shown its ability to outperform the S&P 500. Johnson & Johnson rose by approximately 10% compared to the S&P’s loss of about 10% over the past year. Hedge funds were buying in the first quarter, and this healthcare-focused holding company was added to the WhaleWisdom WhaleIndex on May 17, 2022.

Johnson & Johnson is an investment holding company that develops pharmaceuticals, medical devices, and consumer personal care goods. Johnson & Johnson has three business segments: Consumer, Pharmaceutical, and Medical Devices. Its Consumer segment is well known for products such as Band-Aid bandages, Neutrogena skin care products, and Johnson’s Baby products. Its Medical Devices segment is utilized across hospitals, retailers, and wholesalers. The Pharmaceutical segment focuses on vaccines, infectious diseases, oncology, pain management, contraception, and neurology, among other products.

(WhaleWisdom)

Its company includes about 250 subsidiary companies with operations and sales worldwide, though its pharmaceutical business represents most of the sales revenue. The company engages in research and development through its pharmaceutical arm, Janssen Pharmaceutica. Johnson & Johnson announced in late 2021 that it plans to separate the pharmaceutical business from consumer products by late 2023. This significant change also comes amid ongoing legal challenges for the conglomerate related to its baby powder product. As the 2023 business changes approach, Johnson & Johnson appears focused on being a leader in the pharmaceutical and medical technology industries.

(WhaleWisdom)

Mixed Actions from Institutions and Hedge Funds

Johnson & Johnson’s stock saw hedge funds buying in the first quarter, with the aggregate 13F shares held increasing to about 296.80 million from 296.77 million, a mild change of approximately 0.01%. Of the hedge funds, 32 created new positions, 216 added, 30 exited, and 200 reduced their positions. In contrast to hedge funds, institutions sold and decreased their aggregate holdings by about 0.9% to approximately 1.80 billion from 1.81 billion. Johnson & Johnson’s long-term 13F metrics between 2004 and 2022 show that the company remains on an upward growth trend for the stock price and funds helds.

(WhaleWisdom)

Positive Earnings Estimates

Analysts expect to see earnings increase in 2022 and 2023, bringing earnings per share to $10.88 by December 2023, up from an estimated $10.26 for December 2022. Estimates are also encouraging for revenue, with an anticipated rise to approximately $96.5 billion by December 2022 and an estimated revenue of about $100.2 billion by December 2023.

Analysts Are Both Optimistic & Cautious

David Risinger of SVB Securities gave Johnson & Johnson an Outperform rating and a $200 price target, sharing expectations that the company will outperform the S&P 500 based upon consistent past earnings growth. Risinger is optimistic that the Medical Devices segment will continue to see sales growth in 2022 and 2023 and noted that Johnson & Johnson will exit from the Consumer segment in 2023. Citi analyst Joanne Wuensch gave Johnson & Johnson a Buy rating and lowered the firm’s price target to $205 from $210. Wuensch noted the impact of higher inflation and interest rates on the market, which is slowing growth for many companies and could also impact the medical technology industry.

Bright Outlook

Johnson & Johnson’s earnings estimates through 2023 are encouraging for investors. While growth may slow amid market volatility, the healthcare conglomerate and holding company has a strong track record of outperforming the S&P. Analysts appear bullish on the medical device and pharmaceutical businesses, and the stock’s trends suggest a long-term opportunity for investors.

Palo Alto Networks, Inc. (PANW) has outperformed the S&P 500, rising by approximately 25% compared to the S&P 500’s decline of roughly 10% over the past year. Hedge funds were buying in the first quarter of 2022 as demand for cybersecurity solutions remained strong, and the cybersecurity leader saw continued market growth. As a result, it was added to the WhaleWisdom WhaleIndex 100 on May 17, 2022.

Palo Alto Networks provides cybersecurity solutions worldwide through products and services such as firewalls, intrusion prevention and detection systems, mobile device protection, uniform resource locator filtering, and cybersecurity consulting. Palo Alto Networks brings in revenue through selling its software applications and subscriptions for the ongoing support of next-generation security (NGS) services. The company operates three distinct yet complementing ecosystems: Strata, Prisma, and Cortex. Strata is its core network security platform, Prisma is its suite of cloud-based security services, and Cortex is its artificial intelligence-powered threat detection platform.

(WhaleWisdom)

Hedge Funds Add to Holdings

Hedge funds and institutions were buying Palo Alto Networks’ stock in the first quarter of 2022. The aggregate 13F shares held by hedge funds increased to about 21.1 million from 21.0 million, an increase of approximately 1.6%. Of the hedge funds, 56 created new positions, 85 added, 39 exited, and 93 reduced their holdings. Institutions increased their aggregate holdings by about 2.9% to approximately 85.5 million from 83.1 million. The 13F metrics from 2014 through June 2022 show that funds and stock prices continue to move on an upward trend.

(WhaleWisdom)

Favorable Multi-year Estimates

Analysts expect to see positive revenue and earnings trend continue into 2023. The estimated growth rates could bring revenue to over $6.7 billion by July 2023. Earnings per share are expected to rise to $7.45 by July 2022 and $9.28 by July 2023.

(WhaleWisdom)

Analysts Adjust Price Targets

While not all analysts raised price targets following quarterly results, many view Palo Alto Networks’ stock as a worthy investment. Analyst Patrick Colville of Deutsche Bank raised the price target on Palo Alto Networks to $605 from $587 and kept a Buy rating on shares. Wedbush Securities analyst, Daniel Ives, lowered the firm’s price target on the cybersecurity stock to $580 from $660 and reiterated an Outperform rating on shares. Analyst Gregg Moskowitz of Mizuho Financial Group held a Buy rating on shares with a price target of $600. Mizuho shared enthusiasm over Palo Alto Networks’ impressive billings and product revenue, noting that the company has a robust collection of cloud assets.

Positive Outlook

Palo Alto Networks continues to weather market volatility, and the cybersecurity company is showing promise in 2022. Hedge funds and institutions were buying, and revenue estimates through 2023 look favorable. There continues to be solid demand for cybersecurity and cloud services, and the company’s long-term performance makes it an attractive opportunity for investors.

CrowdStrike May Rebound as Hedge Funds Buy

Posted on June 13th, 2022

CrowdStrike Holdings, Inc. (CRWD) saw its stock rebound slightly in June, after almost six months of disappointing performance during a volatile market. CrowdStrike continues to underperform the S&P 500, declining by approximately 25%, while the S&P has been flat over the past year. Despite the fluctuations, hedge funds were actively buying the stock in the first quarter, though the stock slid on the WhaleWisdom Heatmap to thirteen from nine.

CrowdStrike is a cybersecurity technology company that provides customers with cloud-based workload and endpoint security. CrowdStrike leverages modern technologies such as artificial intelligence (AI) and cloud computing and provides services such as threat intelligence and cyberattack response.

(WhaleWisdom)

Hedge Funds Are Buying

Despite CrowdStrike’s slowdown in performance, hedge funds were very bullish on the stock during the first quarter. Hedge funds increased their holdings, and the aggregate 13F shares rose to approximately 50.2 million from about 48.7 million, an increase of roughly 3.1%. Overall, 49 hedge funds created new positions, 99 added to an existing holding, 45 exited, and 70 reduced their stakes. Institutions also added shares to their portfolios, increasing aggregate holdings by about 5.1% to approximately 153.0 million from 145.6 million. The 13F metrics between 2019 and 2022 show that funds remained reasonably steady despite CrowdStrike’s fluctuating stock price.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts predict earnings per share will rise in the coming years, increasing to $1.76 by January 2024, up from an expected $1.20 for January 2023. Robust performance is anticipated to bring revenue to roughly $3.0 billion by early 2024, up from an estimated $2.2 billion in 2023.

(WhaleWisdom)

Analysts Share a Range of Price Targets

Analysts are far from consensus about the stock, with some raising price targets as others lower them. Morgan Stanley analyst Hamza Fodderwala raised the firm’s price target on CrowdStrike to $195 from $181 while maintaining an Equal Weight rating on shares. Fodderwala noted a strong technology spending environment and favorable revenue guidance for the second quarter. Analyst Joseph Gallo of Jefferies & Company, Inc. raised his firm’s price target on the cybersecurity stock to $215 from $200, citing impressive annual recurring revenue growth. Gallo kept a Buy rating on CrowdStrike’s shares. Analyst Rudy Kessinger of D.A. Davidson & Co. took a different view and lowered the firm’s price target on CrowdStrike to $235 from $280. Davidson adjusted the price target based upon consideration of peer competitors but also kept a Buy rating on shares. Oppenheimer & Co. analyst Ittai Kidron maintained an Outperform rating on shares, factoring in the potential for macroeconomic headwinds. Kidron lowered the firm’s price target to $250 from $300 but noted that the technology company has the opportunity for growth.

Positive Outlook Beyond 2022

While CrowdStrike’s growth has slowed, hedge funds are still buying shares, and earnings estimates through 2024 are encouraging. Demand for the company’s cybersecurity-themed services should continue to gain strength, and the technology stock appears to be an attractive opportunity for long-term investors.

Palo Alto Networks, Inc. (PANW) continues to weather market volatility in 2022. Hedge funds were buying as the company outperformed the S&P 500. Palo Alto Network’s stock rose by over 30%, compared to the S&P 500, which has been unchanged over the past year. The cybersecurity leader was added to the WhaleWisdom Whale Index on May 17, 2022.

Palo Alto Networks is a global cybersecurity company that offers network security functions, including firewalls, threat protection, and intrusion prevention and detection. The company’s products and services have garnered a higher demand over the past four years, supporting increased cloud-based computing and remote work across industries. Palo Alto Networks utilizes its cybersecurity ecosystems to serve customers worldwide by protecting their data and reducing security complexities. The company’s three primary segments are Strata, Prisma, and Cortex. Strata is a network security platform that generates the bulk of the company’s revenue, with Prisma and Cortex representing its next-generation security (NGS) services.

(WhaleWisdom)

Hedge Funds Buy

Palo Alto Networks saw hedge funds actively buying in the first quarter of 2022. The aggregate shares held by hedge funds increased to about 21.1 million from 20.8 million, approximately 1.6%. Of the hedge funds, 56 created new positions, 85 added to an existing one, 39 exited, and 93 reduced their holdings. Institutions also bought the stock and increased their aggregate holdings by about 2.9%, to approximately 85.5 million from 83.1 million. Also, the 13F metrics between 2014 and 2022 suggest that Palo Alto continues to have investment potential as it follows an upward trend.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise through 2023, with anticipated growth that could bring earnings to $7.45 by July 2022 and $9.29 by July 2023. Year-over-year estimates forecast approximately $6.7 billion in revenue by the summer of 2023, up from $5.5 billion for 2022.

(WhaleWisdom)

Favorable Analyst Feedback

Palo Alto Network’s stock has garnered interest and commentary from analysts. Patrick Colville of Deutsche Bank raised his firm’s price target on Palo Alto to $605 from $587 and kept a Buy rating on shares following solid third-quarter results that beat analysts’ estimates. Wedbush Securities analyst Dan Ives shared that Palo Alto’s cloud-driven strategy resonates well with cybersecurity customers. At the same time, Ives lowered the firm’s price target on the stock to $580 from $660 and kept an Outperform rating on shares. Morgan Stanley analyst Hamza Fodderwala noted the stock’s impressive billings growth and optimism that Palo Alto Network could continue its forward momentum and potentially double its market price within two years. Fodderwala shared an $823 price target on shares and an Overweight rating. Deutsche Bank analyst Patrick Colville kept a Buy rating on Palo Alto Network shares and raised the firm’s price target on the stock to $605 from $587.

Bright Outlook

Palo Alto Networks continues to outpace the S&P, despite overall market volatility. The cybersecurity leader’s multi-year earnings estimates speak to the stock’s potential. Factoring the company’s track record and analysts’ outlooks, Palo Alto Networks presents an attractive opportunity for investors.