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Intel Corp. (INTC) underperformed the S&P 500, falling roughly 45% compared to the S&P 500’s loss of about 20% over the past year. Amidst challenging economic conditions, hedge funds were actively selling Intel’s shares.

Intel is a multinational technology company that designs, develops, and manufactures semiconductor computer products and technologies. The company operates through various segments, including the Client Computing Group, Data Center Group, Internet of Things Group, Non-volatile Memory Solutions Group, and Programmable Solutions Group.

Over the past five decades, Intel has evolved into a more data-centric company. While personal computer (PC) related products are still a significant part of its revenue stream, Intel continues to adapt, invest in research and development, and utilize strategic partnerships to enhance technologies and meet consumer demands. Intel has a lot of competition in the chipmaker market and is presently investing in its semiconductor manufacturing operations to improve the fabrication process. Much of the challenges Intel faced over the past year were experienced by the semiconductor industry overall, which has been impacted by high inflation, rising interest rates, and supply-chain delays.


Mixed Actions from Hedge Funds and Institutions

Hedge funds were selling in the second quarter, with the aggregate 13F shares held by hedge funds lowered to about 337.8 million from 349.8 million, a change of approximately 3.4%. Of the hedge funds, 31 created new positions, 163 added to an existing position, 56 exited, and 148 reduced their position. In contrast to hedge funds, institutions increased their aggregate holdings by about 0.5% to approximately 2.50 billion from 2.49 million. The 13F metrics between 2005 and 2022 show that while funds have been on a steady upward trend, Intel’s stock price has taken a downturn over the past two years.


Declining Forecast

Analysts are cutting their earnings estimates for Intel. Earnings are expected to decline in the coming year, decreasing to $1.26 by December 2023, down from an expected $2.05 for December 2022. Performance is expected to bring revenue to roughly $62.0 billion by late 2023, down from 63.6 billion in 2022.


Price Targets Are Adjusted

Analysts appear to share a lukewarm view of the company based on ratings and declining price targets. Christopher Danely of Citi maintained a Neutral rating on Intel and lowered the firm’s price target on the company to $27 from $30. Baird & Co. analyst Tristan Gerra was encouraged by Intel’s earnings report and kept a Neutral rating on shares. Gerra lowered the firm’s price target on Intel to $34 from $40. Gus Richard of Northland Capital Markets held a $52 price target on Intel, and an Outperform rating. Richard expects to see improved performance by the second half of 2023.

Queue the Patient Investor

Analysts’ estimates for Intel include a decline in earnings and revenue through 2023. However, while forecasts for the year ahead may not be encouraging, investors should keep an eye on the stock and wait as its business turns around. Intel is still one of the largest chipmakers in the semiconductor industry and has been making strategic business decisions to improve its infrastructure and reduce costs. The stock has a better long-term outlook for patient investors.

Shares of Netflix Rebound Amid Renewed Growth

Posted on October 31st, 2022

Netflix, Inc. (NFLX) experienced a challenging year navigating 2022’s tumultuous market. Netflix had disappointing performance and faced strong competition. Fortunately, Netflix saw a mild rebound in October but continues to underperform the S&P 500. Netflix has fallen by approximately 60% compared to the S&P’s decline of about 12% as of October 27, 2022, over the past year. Hedge funds were actively selling the stock in the second quarter, though the stock rose on the WhaleWisdom Heatmap to a ranking of nine from sixteen.

Netflix is an entertainment services company that provides a subscription streaming service and has a production company that produces and co-produces streaming content. The company has over 200 million subscribers worldwide and brings in revenue primarily from subscriber fees, with a more recent focus on advertising. Netflix seeks to improve subscribership and revenue statistics by cracking down on customers’ password sharing. Their strategy involves monetizing the practice of account sharing by allowing subscribers to transfer profiles beyond their primary household and create sub-accounts for a smaller fee. Netflix is also launching an ad-supported membership option in twelve countries beginning in November 2022. For a lower subscription cost, customers can choose the ad-supported plan, which will apply targeted marketing capabilities for audiences based on factors such as the content they stream and the country they reside in.


Hedge Funds and Institutions Sell

Hedge Funds adjusted their portfolios in the second quarter, and the aggregate 13F shares held decreased to approximately 70.8 million from 73.4 million, a slide of about 3.6%. Overall, 50 hedge funds created new positions, 139 added, 114 exited, and 99 reduced their holdings. Institutions also sold and lowered their holdings by about 3.3% to $333.7 million. The 13F metrics between 2005 and 2022 suggest that Netflix still has long-term investment potential.


Encouraging Multi-year Estimates

Analysts anticipate earnings will rise through 2023, with year-over-year increases in growth that could bring earnings to $10.66 per share by December 2023, up from a projected $10.31 for 2022. Revenue predictions are also favorable, with revenue expected to increase to about $33.9 billion by 2023, up from an estimated $31.6 billion in December 2022.


Analysts Are Encouraged by Improved Performance

Netflix saw growth once again in October, and analysts took notice. Pivotal Research Group analyst Jeffrey Wlodarczak raised the firm’s rating on the stock to a Buy from a Sell and set a price target of $375 on Netflix shares. Wlodarczak expressed optimism at Netflix’s ability to recoup revenue lost from customers’ password sharing and appeared cautious about the risk of customers downgrading subscription services in a recession. Analyst Satoshi Tanaka of Daiwa Capital raised their firm’s price target on Netflix to $330 from $226 following improved earnings and upgraded the stock to an Outperform rating from a prior Neutral rating projection. Oppenheimer & Co. analyst Jason Helfstein kept an Outperform rating on Netflix and raised the firm’s price target to $365 from $325. Helfstein was encouraged by Netflix’s strategy to identify shared accounts and push many account holders to ad-supported streaming subscriptions.

Better Days Beyond 2022

Netflix is beginning to rebound from this bearish market, and investors should be encouraged by analysts’ optimistic earnings and revenue estimates through December of 2023. While hedge funds sold in the second quarter, Netflix’s losses offer the opportunity to acquire the stock for less. Netflix continues to offer new streaming content and older TV and movie favorites to its customers. The streaming provider has developed strategies to launch ad-supported membership globally and recoup lost revenue from ad-sharing. Netflix has positioned itself well to adapt to changes in demand and draw investors’ attention.

UnitedHealth Group Inc. (UNH) stock slower has dropped over the past year, though the company significantly outperformed the S&P 500, rising by approximately 22% compared to the S&P’s loss of about 21% as of October 20, 2022. Hedge funds were selling, and the healthcare company landed on the WhaleWisdom HeatMap at a ranking of three.

UnitedHealth is a diversified healthcare and insurance company that offers healthcare products and insurance services. The company’s two core platforms include UnitedHealthcare, comprised of its health benefit plans and services, and OptumRx, a line of pharmacy care services and programs, including home delivery and clinical capabilities. UnitedHealth generates the bulk of its revenue from premiums on risk-based products, fees for services, the sale of healthcare products, and investments.

Rising expenses and temporary government mandates have impacted the healthcare industry throughout the Coronavirus pandemic. Health insurers’ medical costs and profits fluctuated from increased hospitalizations, restrictions on non-urgent and elective procedures, and inflation. However, United Health anticipates that these challenges and higher costs will ease in the coming year.

Hedge Funds Sell Shares

UnitedHealth saw hedge funds selling in the second quarter of 2022, with the aggregate 13F shares held lowered to approximately 143.5 million from 150.7 million, a change of roughly 4.8%. Of the hedge funds, 30 created new positions, 175 added their stakes, 48 exited, and 208 reduced their holdings. Institutions sold and decreased their aggregate holdings by a modest 0.2% to approximately 808.9 million from 810.8 million.

Favorable Revenue Estimates

Analysts expect to see earnings increasing through 2023, bringing earnings per share to $22.03 by December 2022 and $24.95 by December 2023. Estimates are also encouraging for revenue, with an anticipated rise by December 2022 to approximately $323.3 billion; this momentum may continue with revenue estimated at $352.1 billion by December 2023.

Analysts Respond to Strong Q3 Results

UnitedHealth exceeded Wall Street’s expectations in the third quarter, causing the company to raise its earnings outlook and many analysts to raise price targets. Deutsche Bank analyst George Hill kept a Buy rating on UnitedHealth’s shares and increased the firm’s price target to $615 from $569. RBC Capital Markets maintained an Outperform rating on the stock and raised its price target on UnitedHealth to $592 from $588. Raymond James lowered its price target on UnitedHealth to $615 while maintaining the company as a Strong Buy.

Optimistic Outlook

UnitedHealth’s performance over the past year demonstrates its ability to grow despite pandemic challenges and a volatile market. The healthcare industry has growth potential, and UnitedHealth’s products and services will likely see continued demand. Analysts’ encouraging earnings and revenue growth predictions through 2023 support UnitedHealth as a worthwhile investment opportunity.

Charles Schwab Corp (SCHW) saw improvements over the past few months and outperformed the S&P 500. Despite recent gains, the shares of Charles Swab have fallen approximately 10% compared to the S&P’s loss of about 19% over the past year. Hedge funds were actively buying the stock in the second quarter, and this financial services company was added to the WhaleWisdom WhaleIndex on August 16, 2022.

Charles Schwab is a multinational financial services company that provides banking and trust services, retail brokerage, corporate brokerage, retirement, and investment advisory services to institutional and individual customers. Charles Schwab has a strong history as an investment services firm. The company’s stock trading tools are designed to help investors with stock selection and trading. The opportunity to choose from its varying levels of investment support pairs well with the ongoing trend of do-it-yourself investing.


Mixed Actions from Hedge Funds and Institutions

Looking at the second quarter activity by hedge funds, Charles Schwab saw an increase of approximately 2.4% in the aggregate 13F shares held, bringing shares held to about 346.4 million from 338.2 million. Of the hedge funds, 29 created new positions, 136 added, 41 exited, and 87 reduced their holdings. In contrast to hedge funds, institutions were selling, and overall, institutions decreased their aggregate holdings by about 0.4% to approximately 1.317 billion.


Positive Multi-year Figures

Analysts expect to see earnings rise, with increases in growth that could bring earnings to

$4.91 by December 2023, up from an estimated $3.92 for December 2022. Estimates are also optimistic for revenue, with an anticipated rise by the end of 2022 to approximately $20.8 billion. Continued momentum may bring revenue of about $23.6 billion by December 2023. Charles Schwab’s long-term 13F metrics between 2004 and 2022 suggest that their investment potential remains strong.


Optimistic Analysts though Price Targets Vary

Analysts’ views vary on Charles Schwab, but there appears to be overall optimism. Analyst Brian Bedell of Deutsche Bank Securities lowered the firm’s price target on Charles Schwab to $95 from $99 while maintaining a Buy rating on shares. Bedell is cautious about the stock but recognizes the positive side of Charles Schwab’s recent price declines, including good long-term entry points for investors. Erste Group’s analyst, Hans Engel, upgraded Charles Schwab to a Buy from a Hold due to the investment services company’s earnings growth in 2022 and expected future growth. Daniel Fannon of Jefferies & Co. maintained a Buy rating on Charles Schwab and raised the firm’s price target to $86 from $78.

Favorable Outlook

Charles Schwab’s growth has slowed in 2022, but its earnings history and estimates for 2023 are encouraging for investors. Continued demand for its financial services and analysts’ ratings and price targets support the company’s growth potential in the coming year. Patient investors may see the stock as a long-term opportunity. Charles Schwab is worth watching as it continues to regain ground.

Tesla, Inc. (TSLA) continues to see fluctuating growth, aligning closely in performance with the S&P 500 in early October 2022. Both Tesla and the S&P saw a loss of approximately 12% over the past year. Hedge funds were selling the stock, and Tesla slid on the WhaleWisdom HeatMap to a rank of eighteen from two.

Tesla is a multinational automotive and clean energy company that designs, develops, manufactures, and sells electric vehicles (EVs), energy generation products, and energy storage systems. Tesla has made its mark on the automotive industry, and the market for Tesla’s EVs continues to grow as a larger volume of consumers seek to lower their carbon footprint while also appreciating Tesla’s unique luxury vehicles. The company’s energy generation and storage business, run through its Tesla Energy subsidiary, has grown in 2022 despite market challenges.

Tesla has opened several new factories over the past two years, both nationally in the US and overseas, supporting manufacturing expansion and meeting the demand for its products. New factories in Texas and Germany represent some of the most significant new additions and produce lithium-ion batteries for EVs, among other energy devices. Tesla continues to see increased competition in the EV space. However, its investment in battery technology and overall efficiency continues to give them an advantage. Recent concerns in the news related to Tesla’s primary founder, Elon Musk’s, back-and-forth decisions about buying Twitter, Inc. Some investors have concerns about whether this purchase will require selling more Tesla shares. Over the past year, Tesla has also been negatively impacted by economic and political factors but continues to move forward with production and innovation.

Mixed Results from Hedge Funds and Institutions

Tesla saw mixed results during the 2022 second-quarter activity, and the aggregate 13F shares held by hedge funds decreased to about 165.9 million from 175.2 million, a decrease of approximately 5.3%. Of the hedge funds, 28 created new positions, 188 added, 50 exited, and 117 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 3.2% to approximately 1.34 billion from 1.29 billion. The 13F metrics between 2012 and 2022 are a good reflection of Tesla’s ability for growth despite a rocky path of upward mobility.



Favorable Estimates

Analysts estimate that year-over-year increases will bring earnings to $5.86 per share by December 2023, up from December 2022’s predicted $4.31 earnings. Revenue estimates are also encouraging, expecting approximately $85.1 billion by December 2022 and a rise to about $120.0 billion by December 2023.

Analysts React to Missed Expectations

Analyst Ryan Brinkman of JPMorgan Chase & Co. kept an Underweight rating on shares and raised the firm’s price target on Tesla to $153 from $137. Even after Tesla’s third quarter (Q3) vehicle deliveries tracked below consensus estimates, Brinkman maintained his estimates. While Tesla expanded production capacity, some factory locations, such as the Shanghai plant, have continued to face shutdowns and delays related to Coronavirus lockdowns and restrictions. While Tesla has reported record delivery figures, the volume has not met consensus expectations, and there are concerns regarding demand. Oppenheimer & Co. Inc. analyst Colin Rusch acknowledged that the Q3 deliveries did not meet expectations but still advised that Tesla shares are a buy and is optimistic about fourth quarter (Q4) deliveries. Deutsche Bank’s analyst, Emmanuel Rosner, also reported Q3’s deliveries being shy of expectations and lowered his Q3 revenue and earnings forecasts.

Positive Outlook Ahead

While Tesla’s growth has slowed, revenue and earnings predictions through 2023 are encouraging. The company has taken measures to expand its manufacturing capacity and continues to innovate its clean energy solutions and expand its EV portfolio. Demand for Tesla’s products and solutions is likely to gain strength, especially with a long-term shift by consumers to electric vehicles. The stock’s trends suggest the company is still a buy for patient investors.