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Tandem Diabetes Care, Inc. (TNDM) has traversed a rocky path in 2020 and early 2021. The diabetes equipment supplier has seen both growth and setbacks along the way and yet managed to climb to the impressive ranking of two on the WhaleWisdom HeatMap in the fourth quarter. Over the last few months, Tandem regained momentum, outperforming the S&P 500. Since the beginning of 2020, the stock has risen by approximately 59.4% compared to the S&P’s gain of about 18.5%.

Tandem is a medical device company that develops insulin pumps, insulin dosing systems, glucose monitoring software, and other products and services that improve individuals’ lives with diabetes. Tandem initially felt the sting at the start of the coronavirus pandemic in the spring of 2020. Government stay-at-home advisories, business closures, and general pandemic-induced fear by the public likely contributed to a temporary reduction in the volume of visits to doctors and delays in bringing Tandem’s products and services to new customers. Fortunately, about five months into the pandemic, the company’s business rebounded as medical visits started to return to normal levels and new customers began to try Tandem’s insulin pump therapy services.

Mixed Results from Hedge Funds and Institutions

Tandem seemed to fall out of favor with hedge funds. The fourth quarter aggregate 13F shares held decreased to about 14.9 million from 16.3 million, a decrease of approximately 8.6%. Of the hedge funds, 13 created new positions, 35 added to existing holdings, 21 exited, and 31 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 7.2%, to approximately 57.8 million from 54.0 million, helping to push Tandem on the HeatMap to 2 from 41.


Encouraging Multi-Year Estimates

Analysts estimate that year-over-year revenue growth for 2021 will increase by about 22.4%, continuing with growth in the range of 17.7% to 24.9% over the next few years. Between 2021 and 2024, revenue could very likely grow from approximately $610.5 million to $1.1 billion.

Earnings per share are forecast at breakeven in 2021, followed by a surge in 2022 to $0.59. Analysts expect positive year-over-year growth for 2023 and 2024 at about 138.1% and 17.9%, respectively. These surges in growth could bring earnings per share to an estimated $1.66 by December 2024.


Optimistic Analysts

Lake Street Capital Market’s analyst, Brooks O’Neil, took note of Tandem’s strong fourth-quarter results and raised its price target to $150 from $137. O’Neil’s enthusiasm about the stock is influenced by a great short and long-term outlook for Tandem’s role in addressing the diabetes epidemic. Worldwide increases in insulin pump shipments have contributed to Tandem beating Wall Street estimates for its fourth-quarter revenue.

Favorable Outlook

Tandem showed resiliency during the coronavirus pandemic. Despite its competition in the diabetic device market, it continues to build its customer base and deliver products and services that aid in the diabetes pandemic.

Analysts are bullish about the future, raising price targets as customer demand for diabetic devices remains strong. Tandem has regained some upward traction in recent months and holds promise beyond 2021 for patient investors.

Carvana Co. (CVNA) saw improved performance over the past ten months after a dip in February and March 2020 related to the coronavirus pandemic. Carvana outperformed the S&P 500, rising by approximately 221.6% compared to the S&P’s gain of about 21.8% since the end of 2019. This has helped to propel the stock up to number one on the Whale Wisdom Heat Map, from a previous rank of 24.

Carvana operates an online platform for buying used cars, serving customers throughout the United States. While car sales initially fell at the start of the pandemic as the country went into lockdown, the company has fortunately seen demand recover for its e-commerce style of automobile retail. Factors that may have contributed to Carvana’s strong growth are that many consumers want to spend more conservatively on automobiles when unemployment rates are high. New car inventories are low due to pandemic-related business shutdowns. Carvana offers touchless delivery options that align well with social distancing practices. Buyers don’t need to visit a used car lot, and vehicles are delivered to their homes with friendly return policies. It has worked in Carvana’s favor that transportation trends have temporarily shifted away from public transit during the pandemic and made driving vehicles more appealing. Government stimulus checks have also likely made it easier for consumers to make down payments on cars.

Hedge Funds and Institutions Are Buying

Carvana is enjoying positive actions by hedge fund managers and institutions. Looking at activity by the top hedge funds in the fourth quarter, the aggregate 13F shares held increased to about 40.6 million from 40.4 million, an increase of approximately 0.6%. Of the hedge funds, 40 created new positions, 33 added to existing holdings, 14 exited, and 41 reduced their stakes. With aggregate holdings increasing by about 4.5% to approximately 86.9 million from 83.2 million, institutions were also buying.


Encouraging Multi-year Estimates

Analysts expect to see revenue rise over the next four years, with increases in growth from 2020 to 2023 spanning from approximately 36.3% to 48.3%. This prediction for strong growth could bring revenue to $15.1 billion in 2023, up from $5.4 billion in 2020. Year-over-year estimated increases could also bring earnings to $2.00 per share in 2023.


Analysts See Growth Potential

Wells Fargo & Co. expects considerable growth for Carvana given the recent online auto evolution, and analyst Zachery Fadem sees the company as a leader in growth with continued potential. CFRA Research Co.’s analyst, Garrett Nelson, recently shared mixed views on the used car retailer, noting they have increased competition and don’t include money-making service operations or part sales as part of their business model, yet have an improving gross margin influenced by pandemic trends. CFRA raised its rating on Carvana to Hold from Sell.

Positive Outlook

Overall, there is a positive outlook for Carvana’s financial future. The company’s impressive growth and future revenue estimates appeal to many investors. While Carvana will have to contend with increased competition from other used car companies, they have great potential for increased revenue. Their business model has aligned well to changing shopping trends and priorities during the pandemic, leaving investors with strong motivations to acquire shares.

Sea Limited ADR (SE) saw impressive growth over the past year, substantially outperforming the S&P 500 and rising on the WhaleWisdom Heatmap to a ranking of nine. Hedge funds and institutions are actively buying the equity. Sea’s stock rose by approximately 582.82% since the start of 2020, a whopping gain compared to the S&P’s increase of about 21.2%.

Sea is a consumer internet company that offers e-commerce and online gaming and personal computer content, mobile digital content, and digital financial services. The technology company is structured with three business segments to deliver these services: Garena, Shopee, and SeaMoney. While many businesses have faced hurdles during the coronavirus pandemic, Sea has seen a significant boost in sales as customers following stay-at-home advisories and quarantines seek greater online retail therapy and digital entertainment, with no clear end in sight to these behavioral shifts.

Hedge Funds Are Buying

Sea has earned the favor of hedge fund managers and institutions. Looking at activity by the top hedge funds in the third quarter, the aggregate 13F shares held increased to about 72.5 million from 71.7 million, an increase of approximately 1.2%. Of the hedge funds, 33 created new positions, 48 added to an existing holding, 11 exited, and 67 reduced their stakes. Institutions were also buying, and aggregate holdings increased by about 0.9% to approximately 241.0 million from 238.8 million. Sea’s WhaleWisdom HeatMap ranking improved to 9 in the third quarter, up from 14 previously.


Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next several years, with increases in growth from 2020 through 2026 spanning from approximately 13.4% year over year to 56.4%. Estimated increases for earnings between 2020 and 2023 could bring year over year earnings to $2.77 per share in 2023, up from a loss of $2.47 for 2020.


Analysts See Strong Growth

Investment and financial service companies recognize Sea’s growth potential and street analysts are bullish. Credit Suisse Group AG recently bumped Sea’s price target to a Street high of $285, up from $225. Credit Suisse cited recent gaming growth and predictions for growth in Sea’s e-commerce unit, Shopee.

Positive Outlook

Hedge funds and institutions are buying, and analysts share optimism following a year of robust revenue growth. There is an opportunity for Sea to continue to reap the benefits of the pandemic’s influence on online shopping and entertainment habits. Recent growth and multi-year estimates are encouraging for investors in the long-term.

PayPal Holdings, Inc. (PYPL) saw strong momentum over the past year, significantly outperforming the S&P 500 and rising by approximately 150.0% compared to the S&P’s gain of about 19.8%.

PayPal is an American company with a technology platform that enables digital and mobile payments on behalf of merchants and consumers and supports online money transfers between friends and family. PayPal rebounded from a dip in performance around March of 2020 when the coronavirus pandemic gained traction in the United States. However, the poor performance quickly reversed as investors soon realized the benefits the pandemic would have as consumer shopping habits shifted online. Many businesses were forced temporarily to close with consumers adhering to social distancing guidelines. There was a shift to online technology for money management, including online shopping through digital payments. Despite the company soaring to new revenue heights, PayPal did slide on the WhaleWisdom HeatMap to a ranking of 34 from 16.

Hedge Funds Are Selling

Despite PayPal’s gains, hedge funds and institutions were selling in the third quarter. Hedge funds decreased their aggregate 13F shares held to approximately 226.6 million from about 237.5 million. Of hedge funds, 49 created new positions, 153 added to an existing holding, 25 exited, and 221 reduced their stakes. Institutions decreased their aggregate holdings to about 967.7 million from 980.0 million, a mild decrease of 1.3%.


Revenue Is on the Rise

Analysts have positive views on PayPal with year over year growth ranging from 15.8% to 20.8% over the next four years. Revenue is forecast to reach approximately $43.2 billion in 2024, up from $25.6 billion in 2021. Predicted increases may bring earnings to $11.37 per share by 2025, up from $4.55 for the fiscal period ending in December 2021.

Enthusiastic Views

Analysts appear enthusiastic about the stock. Mizuho Securities USA’s analyst, Dan Dolev, believes that the company is becoming the “ultimate financial ‘super app,’ that transcends across payments, commerce, and financial services.” PayPal recently announced the upcoming launch of a new cryptocurrency business unit, and this also has analysts’ attention. Keefe Bruyette & Woods Inc’s (KBW) analyst, Sanjay Sakhrani, shared similar sentiments and noted that the cross-generational behavior shift towards eCommerce creates the opportunity for sustainably higher earnings power.


Positive Overall Outlook

PayPal’s recent growth brings an encouraging outlook, as supported by future earnings estimates that show continued growth through 2025. Amidst the pandemic, this digital payment leader offers investors an opportunity as it continues to see increased demand for its services.

Apple Sets Revenue Record as Growth Continues

Posted on February 1st, 2021

Apple Inc. (AAPL) saw strong performance over the past 12 months, outperforming the S&P 500 and rising by approximately 86.7% compared to the S&P’s gain of about 17.2%. Despite strong growth, hedge funds and institutions actively sold the stock in the third quarter, which explains the company’s recent slide in rating on the WhaleWisdom Heat Map to 40 from 4.

Apple is a multinational technology company that designs, manufactures, develops, and sells mobile communication and media devices, personal computers, computer software, portable music players, networking applications, and various online services. The company has moved beyond the initial negative impact of the coronavirus pandemic that many companies faced in the spring of 2020. Apple has continued to thrive as demand for its products and services strengthened.

Hedge Funds’ Enthusiasm Wanes

Hedge Funds were selling Apple’s stock in the third quarter of 2020. The aggregate 13F shares held by hedge funds decreased to approximately 1.3 billion from 1.4 billion, a decrease of about 9.2%. Overall, for hedge funds, 42 created new positions, 136 added to an existing holding, 30 closed out their position, and 331 reduced their stakes. Institutions decreased their aggregate holdings by about 5.0%, to 9.7 billion from 10.2 billion.


Favorable Forecasts

Apple has achieved record-level revenue and held the top sales position in the fourth quarter due to the iPhone 12’s successful launch. In the summer of 2020, analysts such as Wedbush Capital’s Daniel Ives noted the opportunity ahead for Apple as many consumers were coming eligible for upgrades to mobile phones; these upgrades are now coming to fruition. Katy Huberty of Morgan Stanley maintained an outperform rating on the stock and raised the price target to $164 from $152, noting customer loyalty as one major factor. Piper Sandler Co.’s analyst, Harsh Kumar, highlighted Apple’s impressive sales growth and increased Apple’s price target to $160 from $135.

Predictions for Continued Growth

Analysts have optimistic revenue estimates for the company over the next four years, expecting that earnings will rise year-over-year from 2020 through 2023. Revenue increases range from approximately 21.1% year over year in 2021 to 13.2% in 2024. These significant year-over-year estimates would bring earnings to $5.43 per share in 2024, up from $4.35 for 2021.

Positive Outlook

Hedge funds may have been selling, but analysts are very optimistic about the stock. Apple’s iPad sales continue to catch pandemic tailwinds, and there is strong demand for the iPhone 12. Recent growth and multi-year estimates are encouraging for investors in the long-term.