Navigating the stock market is not for amateurs. It’s a complex and alluring maze that can be overwhelming, especially when you’re just starting to invest or want to find more affordable ways of getting into it. The best way I’ve found so far? Subscribing to investment gurus and taking a look at their stock picks.
Israel “Izzy” Englander is an American billionaire and hedge fund manager. His New York-based Millennium Management firm has over $57.4 billion in assets under management (AUM) and offices around the globe. Englander has mastered the art of turning a small loss into an opportunity. A consistent performer, the fund manager makes sure Millennium is not just another high-risk investment firm by making low-risk bets others often ignore. That has earned double-digit returns on average per year over many decades in business.
As one of the older living investors at 73 years old, Englander’s story continues to inspire young and seasoned professionals alike. So, without further ado, let’s take a deep dive into some the top stock picks of this legendary name:
- Amazon (NASDAQ:AMZN)
- Apple (NASDAQ:AAPL)
- Alibaba Group (NYSE:BABA)
- Microsoft (NASDAQ:MSFT)
- Tesla (NASDAQ:TSLA)
- Facebook (NASDAQ:FB)
- Micron Technology (NASDAQ:MU)
Top Stock Picks: Amazon (AMZN)
First up on this list of stock picks is AMZN stock. Amazon’s recent earnings report had investors worried about the company’s future. In just a day, shares tanked about 8% after the report dropped. On top of this, the recent rise in U.S. Treasury yields is also weighing down sentiment for large tech stocks. When you couple that with a somewhat disappointing report, it should come as no surprise why the stock recently registered one of its longest recent losing streaks.
However, it is a surprising turn of events when it comes to the bigger picture. After all, AMZN stock and price corrections rarely go hand in hand. Still, anything is possible in the current markets. Now though, shares are trading at a very enticing price point. And this is still Amazon at the end of the day — one of the biggest and most successful enterprises in the world.
Back in 2020, annual revenues jumped 38% to $386 billion. Net income was $21.3 billion, up from $11.6 billion in the year-ago period. And even though last quarter was a letdown, the company still posted its third $100 billion-plus quarter in a row. The next earnings report is expected to drop after the market closes on Oct. 28. Amazon has set a conservative 10% to 16% growth target for revenue.
Time will tell if the company can deliver another beat. But history is on its side, despite the semiconductor shortage and supply chain issues. That makes it one of the top picks for a legendary investor like Englander.
Apple (AAPL)
Apple has been on a roll lately, with its latest report exceeding expectations yet again. The company reported solid earnings per share (EPS) and stellar revenue. Specifically, revenue surpassed analyst forecasts and was up 36%, with services reaching a new all-time high in particular. The company’s services revenue was up nearly 33% year-over-year (YOY) in the June quarter, marking an impressive turnaround from an otherwise sluggish growth rate previously.
Of course, this company offers many different types of content via its App Store platform, including music streaming services and video game distribution. It also just announced a suite of new products. Apple’s hardware margins are also larger than its service margins, although each dollar of added services sales disproportionately boosts AAPL’s profits in comparison to flagship products like the iPhone.
Touching upon the results, Apple CFO Luca Maestri said the following:
“We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”
Clearly, AAPL stock is a solid entry among this list’s stock picks.
Top Stock Picks: Alibaba (BABA)
Alibaba is an e-commerce giant and tech name based in China that serves nearly 240 million international customers through its platform as well as a bevy of customers domestically. There’s really only one comparison you can make to this company on a global level: Amazon. Alibaba’s U.S. counterpart has more than 300 million international customers.
Like Amazon, BABA also offers a comprehensive range of products, including consumer electronics, clothing, furniture, foodstuffs and more. Surprisingly though, despite its excellent financial performance, BABA stock is down nearly 17% in the last three months.
There are a couple of factors at play here, but the biggest thing behind this decline is a recent governmental crackdown. Basically, Alibaba has been the target of regulatory scrutiny over allegations that it has actively tried to restrict competition. As a result, the company was ordered to cough up a $2.8 billion fine.
Still, there is another way to look at this case. Compared to other major antitrust activities in recent years, the fine is a bit of a slap on the wrist. And if the worst is over? For this one of the stock picks, now may be the perfect time to get in the game.
Microsoft (MSFT)
MSFT stock is the next entry on this list of top stock picks. Microsoft is a global software company. It makes a variety of operating systems and devices — from PCs to gaming consoles — and also operates search engine Bing for users around the world. This software giant is ubiquitous in the space. And its track record shows there is no stopping its momentum.
Most recently, Microsoft’s fiscal Q4 earnings and quarterly revenue guidance smashed analyst estimates. For the period, revenues jumped 21% YOY to $46.2 billion. Net income also grew 47% to $16.5 billion. What’s more, Microsoft’s Intelligent Cloud segment — including the Azure public cloud and Windows Server — had a 30% increase in revenue for Q4. That growth came from strong demand for its innovative software.
Overall, the quarter was another great showing for a company that seems to have no chinks in its armor. No wonder MSFT stock is one of the top picks for Englander as well as many other investment whizzes.
Top Stock Picks: Tesla (TSLA)
Nowadays, Tesla dominates investment discussions. Of course, that is bound to happen when a stock has a five-year return of over 2,000%. In fact, Tesla bulls have proven very stubborn thus far. Short sellers suffered losses of $40 billion in 2020. Now, although a large contingent of analysts remains on the fence, CEO Elon Musk is slowly bringing them around. Even while Nio (NYSE:NIO) is making steady strides, Tesla is in a league of its very own.
It will likely remain this way for quite some time. Tesla has a leg up on the competition in the electric vehicle (EV) space and is simultaneously leading the way in self-driving cars. True, the latter technology is still nascent, so don’t expect profits at this stage. But considering the potential of this growing market, self-driving is yet another reason to invest in TSLA stock. Plus, it doesn’t hurt that the company continues to smash delivery records.
Last year, the EV company set a goal to deliver 500,000 vehicles. Tesla fell short of that by only 450 cars. Meanwhile, deliveries in the first nine months of 2021 have already shot past 600,000 vehicles.
So, with all of these positive catalysts, don’t expect Tesla to slow down anytime soon. With the momentum it’s building, it should only go up from here, landing it a rightful place on this list of Izzy Englander stock picks.
Facebook (FB)
Facebook has been in some hot water lately. Specifically, the company’s lack of transparency about its platforms’ potential harm left former employee and whistleblower Frances Haugen more than frustrated. Seeking to expose Facebook’s wrongdoing, Haugen testified in front of a U.S. Senate subcommittee on Oct. 5.
So, it seems that U.S lawmakers are finally getting more serious about regulating Facebook. This is coming after years of concerns over user safety and the divisiveness brooding on the platform. But this is not the only reason FB has been in the news.
In addition to the regulatory drama, Facebook and its other platforms — including Instagram and WhatsApp — also faced a severe outage earlier this month. The company has confirmed the cause of the outage was not a software or hardware failure but rather a configuration change. However, the event was a reminder of FB’s immense power as a company. On the outage, U.S. Congresswoman Alexandria Ocasio-Cortez tweeted:
“If Facebook’s monopolistic behavior was checked back when it should’ve been (perhaps around the time it started acquiring competitors like Instagram), the continents of people who depend on WhatsApp & IG for either communication or commerce would be fine right now. Break them up.”
Considering these two pieces of news, it is not hard to figure out why FB stock is down 7% in the last one month. However, all is not lost. This social media giant has shown time and again that it is very nimble when dealing with public relations issues. That does not mean an overnight recovery, true. But Facebook has largely proven itself through several ordeals. So, considering that it’s trading at a relative discount, the risk is worth taking for this entry among the stock picks.
Top Stock Picks: Micron (MU)
Last up on this list of stock picks, Micron produces computer memory solutions and data storage devices, including dynamic random access memory (RAM), flash drives, solid-state disks and hard drives to store programs and information on.
Recently, Micron reported Q4 and full-year results for fiscal 2021. The period was yet another beat for the memory and storage solutions provider. For example, the company reported revenue of $8.27 billion versus $7.42 billion in the prior quarter, an increase of 11.5% quarter over quarter. Meanwhile, non-GAAP net income came in at $2.78 billion, or $2.42 per diluted share. Furthermore, for the whole year, revenues finished 29% higher at $27.71 billion versus $21.44 billion for the prior year. Non-GAAP net income came in at $6.98 billion, or $6.06 per diluted share.
For fiscal Q1 2022, revenues are now expected in the range of $7.65 billion, give or take $200 million. The gross margin is also expected to be between 45% and 47%. Speaking on the results, Micron CEO Sanjay Mehrotra remarked the following:
“In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend.”
With strong revenues and a leading position in its space, MU stock is clearly another ideal pick to buy.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.