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Ray Dalio Picks Up These 3 “Strong Buy” Stocks

Sometimes, the experts will tell us what we already know. Ray Dalio, the founder of Bridgewater Associates, has built a legendary reputation in financial circles, for taking his firm from
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The post Billionaire Ray Dalio Picks Up These 3 “Stron

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Sometimes, the experts will tell us what we already know. Ray Dalio, the founder of Bridgewater Associates, has built a legendary reputation in financial circles, for taking his firm from a home business in his two-bedroom apartment to the international hedge fund giant, employing over 1,500 people and managing more than $138 billion in total assets, that it is today. But when questioned on how he did it, or how today’s investors can survive the ongoing pandemic crisis, his advice can sound downright ordinary.

Dalio’s advice for investing during the pandemic can be summed up easily enough. First, he says to diversify the portfolio. Diversification means spreading out the risk, which in turn will reduce your losses should one – or even several – investments turn south. Second, Dalio tells us not to bother trying to ‘time the market.’ Even the pros don’t usually get this right, and Dalio says that simply buying into a stock you like, and holding it long term, is a better strategy then trying to buy in at the right time.

The stock market is a risky place to put your money, and Dalio understands that. His tactics for mitigating that risk are age-old – and have arguably brought him great success.

Bearing this in mind, we decided to look at Bridgewater's recent activity for inspiration. Running three stocks Dalio's fund picked up during Q3 through TipRanks’ database, we found out that the analyst community is also on board, as each sports a “Strong Buy” consensus rating.

Baxter International (BAX)

We will start with Baxter International, a health care company based outside of Chicago. Baxter produces medical devices and other products for the treatment of acute and chronic conditions, particularly blood, immune, and kidney diseases. The company markets mainly to health care professionals and institutions, rather than the open market, and boasts over $11 billion in annual revenue.

The company’s revenues through 2020 have been stable, and in-line with historical values. Baxter ended 2019 with a $3 billion quarter; that slipped to $2.72 billion 1Q20, but had risen steadily to $2.97 billion by 3Q20. The company pays out a modest dividend for investors, which at 24.5 cents per common share gives a yield of 1.3%.

Dalio’s position in Baxter is a new one for him. His firm bought up 124,701 shares of the stock, a holding that is worth $9.73 million at current prices.

5-star analyst Danielle Antalffy, of SVB Leerink, writes of Baxter, “[We] see BAX's underlying fundamentals -- accelerating sales growth, meaningful margin expansion -- as unchanged. One of the most meaningful datapoints in this quarter was 6% peritoneal dialysis patient growth… well ahead of the mid-single-digit long-term growth outlook for the Renal business that the Street is modeling. As the COVID pressures begin to lift, visibility into the long-term growth drivers should improve, and we would expect the shares to move meaningfully higher.”

In line with her bullish comments, Antalffy rates BAX shares an Outperform (i.e. Buy), and her $105 price target implies a 34% one-year upside potential. (To watch Antalffy’s track record, click here)

Overall, the analyst consensus rating on Baxter is a Strong Buy, based on 12 reviews that include 11 Buys against just a single Hold. The stock is selling for $78, and its $95 average price target suggest it has room for ~22% upside growth in 2021. (See BAX stock analysis on TipRanks)

CVS Health Corporation (CVS)

The next stock is another healthcare company, but where Baxter, above, markets to the professional side of that sector, CVS aims squarely at the consumer healthcare market. This company is best known as the CVS pharmacy chain, and is a staple of the retail scene. CVS stores offer a range of home healthcare and hygiene products, along with basic groceries, pharmacy services, and some more specialized prescription medical equipment. The company has brought in more than $130 billion in annual revenues for the past three years.

CVS’ revenues showed a slight dip this year, during Q2, when economic conditions deteriorated, but quickly rebounded. The sequence of quarterly earnings in 2020, $66.7 billion, $65.3 billion, and $67.1 billion, show a steady sales base, to be expected from a retailer dealing in products mainly deemed essential during the shutdown policies. Q3 EPS came in at $1.66, well ahead of consensus expectations of $1.33.

The dividend here is 50 cents per share, and has been held steady at that level for over three years now. The payment annualizes to $2, and gives a yield of 2.7%.

Dalio’s Bridgewater bought 320,039 shares of CVS stock last quarter, expanding a test position that the firm already held. The buy boosted the total holding dramatically, to 333,804 shares, which are now worth $24.87 million.

Deutsche Bank analyst George Hill notes that CVS looks set for a ‘peaceful transition of power’ when the current CEO, Larry Merlo, steps down next year.

"While we believe Ms. Lynch will likely consider executing upon CVS’ vertically integrated care delivery strategy, we do expect her to take a fresh look at the business and have little fear of exploring new directions. We believe Mr. Merlo’s legacy will be having the courage to try to reshape and better utilize the struggling retail pharmacy with the Aetna deal," Hill noted.

"CVS is in the early innings on delivering against its vision of a vertically integrated healthcare services company with outsized consumer engagement," the analyst concluded.

To this end, Hill rates CVS shares as a Buy, and gives them a $101 price target, indicating his confidence in 35% growth potential over the next months. (To watch Hill’s track record, click here)

Overall, CVS has 7 recent Buy reviews and 2 Holds, giving the stock a Strong Buy rating from the analyst consensus. The average price target is $83.29, suggesting an 11% upside from the current share price of $74.50. (See CVS stock analysis on TipRanks)

Darling Ingredients (DAR)

With the last stock, we move from healthcare to the food industry. Darling Ingredients recycles the waste products of the restaurant industry and the animal-processing industry – namely, oils, fats, and grease – and manufactures usable meat and bone meals, yellow grease, and tallow. The company’s products are used in pet foods, animal feeds, bioenergy, and fertilizers.

Darling has delivered strong performance through 2020. The company’s quarterly earnings have held between $848 million and $852 million during the corona crisis, while earnings have been shown year-over-year gains in each quarter. The Q3 results included 61 cents EPS on $850 million in top line revenues. DAR stock has been rising steadily since last winter’s market crash, and is up ~77% year-to-date.

This is another new holding for Dalio and Bridgewater. During Q3, the fund pulled the trigger on 69,392 shares, which are now worth $3.46 million.

Covering the stock for Wolfe Research, 5-star analyst Sam Margolin is impressed by Darling’s combination of cutting-edge renewable fuels and mature feed segments.

“We rate DAR Outperform because of its rapid growth in the Renewable Diesel segment (Diamond Green Diesel JV), supported by its feedstock/manufacturing advantage sourced largely from the base business… DAR’s other segments are Food and Feed ingredients, which are relatively mature compared to Fuels. While we do not expect material growth in Food and Feed, we note that margins in the segments have been remarkably steady over recent years…”

These comments support Margolin’s Outperform (i.e. Buy) rating, and his $67 price target implies 34% upside growth next year. (To watch Margolin’s track record, click here)

Other analysts are on the same page. With 5 Buys and 1 Hold received in the last three months, the word on the Street is that DAR is a Strong Buy. Shares are currently priced at $49.87, and the $58.83 average price target suggests double-digit growth of 18%. (See DAR stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Billionaire Ray Dalio Picks Up These 3 “Strong Buy” Stocks appeared first on TipRanks Financial Blog.

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Pharma industry reputation remains steady at a ‘new normal’ after Covid, Harris Poll finds

The pharma industry is hanging on to reputation gains notched during the Covid-19 pandemic. Positive perception of the pharma industry is steady at 45%…

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March 13, 2024

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The pharma industry is hanging on to reputation gains notched during the Covid-19 pandemic. Positive perception of the pharma industry is steady at 45% of US respondents in 2023, according to the latest Harris Poll data. That’s exactly the same as the previous year.

Pharma’s highest point was in February 2021 — as Covid vaccines began to roll out — with a 62% positive US perception, and helping the industry land at an average 55% positive sentiment at the end of the year in Harris’ 2021 annual assessment of industries. The pharma industry’s reputation hit its most recent low at 32% in 2019, but it had hovered around 30% for more than a decade prior.

Rob Jekielek

“Pharma has sustained a lot of the gains, now basically one and half times higher than pre-Covid,” said Harris Poll managing director Rob Jekielek. “There is a question mark around how sustained it will be, but right now it feels like a new normal.”

The Harris survey spans 11 global markets and covers 13 industries. Pharma perception is even better abroad, with an average 58% of respondents notching favorable sentiments in 2023, just a slight slip from 60% in each of the two previous years.

Pharma’s solid global reputation puts it in the middle of the pack among international industries, ranking higher than government at 37% positive, insurance at 48%, financial services at 51% and health insurance at 52%. Pharma ranks just behind automotive (62%), manufacturing (63%) and consumer products (63%), although it lags behind leading industries like tech at 75% positive in the first spot, followed by grocery at 67%.

The bright spotlight on the pharma industry during Covid vaccine and drug development boosted its reputation, but Jekielek said there’s maybe an argument to be made that pharma is continuing to develop innovative drugs outside that spotlight.

“When you look at pharma reputation during Covid, you have clear sense of a very dynamic industry working very quickly and getting therapies and products to market. If you’re looking at things happening now, you could argue that pharma still probably doesn’t get enough credit for its advances, for example, in oncology treatments,” he said.

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I created a ‘cosy game’ – and learned how they can change players’ lives

Cosy, personal games, as I discovered, can change the lives of the people who make them and those who play them.

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March 13, 2024

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Cosy games exploded in popularity during the pandemic. Takoyaki Tech/Shutterstock

The COVID pandemic transformed our lives in ways many of us are still experiencing, four years later. One of these changes was the significant uptake in gaming as a hobby, chief among them being “cosy games” like Animal Crossing: New Horizons (2020).

Players sought comfort in these wholesome virtual worlds, many of which allowed them to socialise from the safety of their homes. Cosy games, with their comforting atmospheres, absence of winning or losing, simple gameplay, and often heartwarming storylines provided a perfect entry point for a new hobby. They also offered predictability and certainty at a time when there wasn’t much to go around.

Cosy games are often made by small, independent developers. “Indie games” have long been evangelised as the purest form of game development – something anyone can do, given enough perseverance. This means they can provide an entry point for creators who hadn’t made games before, but were nevertheless interested in it, enabling a new array of diverse voices and stories to be heard.

In May 2020, near the start of the pandemic, the small poetry game A Solitary Spacecraft, which was about its developer’s experience of their first few months in lockdown, was lauded as particularly poignant. Such games showcase a potential angle for effective cosy game development: a personal one.

Personal themes are often explored through cosy games. For instance, Chicory and Venba (both released in 2023) tackle difficult topics like depression and immigration, despite their gorgeous aesthetics. This showcases the diversity of experiences on display within the medium.

However, as the world emerges from the pandemic’s shadow, the games industry is facing significant challenges. Economic downturns and acquisitions have caused large layoffs across the sector.

Historically, restructurings like these, or discontent with working conditions, have led talented laid-off developers to create their own companies and explore indie development. In the wake of the pandemic and the cosy game boom, these developers may have more personal stories to tell.

Making my own cosy game

I developed my own cosy and personal game during the pandemic and quickly discovered that creating these games in a post-lockdown landscape is no mean feat.

What We Take With Us (2023) merges reality and gameplay across various digital formats: a website, a Discord server that housed an online alternate reality game and a physical escape room. I created the game during the pandemic as a way to reflect on my journey through it, told through the videos of game character Ana Kirlitz.

The trailer for my game, What We Take With Us.

Players would follow in Ana’s footsteps by completing a series of ten tasks in their real-world space, all centred on improving wellbeing – something I and many others desperately needed during the pandemic.

But creating What We Take With Us was far from straightforward. There were pandemic hurdles like creating a physical space for an escape room amid social distancing guidelines. And, of course, the emotional difficulties of wrestling with my pandemic journey through the game’s narrative.

The release fared poorly, and the game only garnered a small player base – a problem emblematic of the modern games industry.

These struggles were starkly contrasted by the feedback I received from players who played the game, however.

This is a crucial lesson for indie developers: the creator’s journey and the player’s experience are often worlds apart. Cosy, personal games, as I discovered, can change the lives of those who play them, no matter how few they reach. They can fundamentally change the way we think about games, allow us to reconnect with old friends, or even inspire us to change careers – all real player stories.

Lessons in cosy game development

I learned so much about how cosy game development can be made more sustainable for creators navigating the precarious post-lockdown landscape. This is my advice for other creators.

First, collaboration is key. Even though many cosy or personal games (like Stardew Valley) are made by solo creators, having a team can help share the often emotional load. Making games can be taxing, so practising self-care and establishing team-wide support protocols is crucial. Share your successes and failures with other developers and players. Fostering a supportive community is key to success in the indie game landscape.

Second, remember that your game, however personal, is a product – not a reflection of you or your team. Making this distinction will help you manage expectations and cope with feedback.

Third, while deeply considering your audience may seem antithetical to personal projects, your game will ultimately be played by others. Understanding them will help you make better games.

The pandemic reignited the interest in cosy games, but subsequent industry-wide troubles may change games, and the way we make them, forever. Understanding how we make game creation more sustainable in a post-lockdown, post-layoff world is critical for developers and players alike.

For developers, it’s a reminder that their stories, no matter how harrowing, can still meaningfully connect with people. For players, it’s an invitation to embrace the potential for games to tell such stories, fostering empathy and understanding in a world that greatly needs it.

Looking for something good? Cut through the noise with a carefully curated selection of the latest releases, live events and exhibitions, straight to your inbox every fortnight, on Fridays. Sign up here.

Adam Jerrett does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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The SNF Institute for Global Infectious Disease Research announces new advisory board

From identifying the influenza virus that caused the pandemic of 1918 to developing vaccines against pneumococcal pneumonia and bacterial meningitis in…

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March 13, 2024

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From identifying the influenza virus that caused the pandemic of 1918 to developing vaccines against pneumococcal pneumonia and bacterial meningitis in the 1970s, combating infectious disease has a rich history at Rockefeller. That tradition continues as the Stavros Niarchos Foundation Institute for Global Infectious Disease Research at Rockefeller University (SNFiRU) caps a successful first year with the establishment of a new advisory board.

Credit: Lori Chertoff/The Rockefeller University

From identifying the influenza virus that caused the pandemic of 1918 to developing vaccines against pneumococcal pneumonia and bacterial meningitis in the 1970s, combating infectious disease has a rich history at Rockefeller. That tradition continues as the Stavros Niarchos Foundation Institute for Global Infectious Disease Research at Rockefeller University (SNFiRU) caps a successful first year with the establishment of a new advisory board.

This international advisory board was created in part to give guidance on how to best use SNFiRU’s resources, as well as bring forward innovative ideas concerning new avenues of research, public education, community engagement, and partnership projects.

SNFiRU was established to strengthen readiness for and response to future health crises, building on the scientific advances and international collaborations forged in the context of the COVID-19 pandemic. Launched with a $75 million grant from the Stavros Niarchos Foundation (SNF) as part of its Global Health Initiative (GHI), the institute provides a framework for international scientific collaboration to foster research innovations and turn them into practical health benefits.

SNFiRU’s mission is to better understand the agents that cause infectious disease and to lower barriers to treatment and prevention globally. To speed this work, the institute launched numerous initiatives in its inaugural year. For instance, SNFiRU awarded 31 research projects in 29 different Rockefeller laboratories for over $5 million to help get collaborative new research efforts off the ground. SNFiRU also supports the Rockefeller University Hospital, where clinical studies are conducted, and brought on board its first physician-scientist through Rockefeller’s Clinical Scholars program. “One of the surprises was the scope of interest from Rockefeller scientists in using their talents to tackle important infectious disease problems,” says Charles M. Rice, Maurice R. and Corinne P. Greenberg Professor in Virology at Rockefeller and director of SNFiRU. “The research topics range from the biology of infectious agents to the dynamics of the immune response to pathogens, and also include a number of infectious disease-adjacent studies.”

In the past 12 months, SNFiRU often brought together scientists studying different aspects of infectious disease as a way to spur new collaborations. In addition to hosting its first annual day-long symposium, SNFiRU initiated a Young Scientist Forum for students and post-doctoral fellows to meet regularly, facilitating cross-laboratory thinking. A bimonthly seminar series has also been established on campus.

Another aim of SNFiRU is to develop relationships with community-based organizations, as well as design and participate in community-engaged research, with a focus on low-income and minority communities. To that end, SNFiRU is helping develop a research project on Chagas disease, a tropical parasitic infection prevalent in Latin America that can cause congestive heart failure and gastrointestinal complications if left untreated. The project will bring together clinicians practicing at health centers in New York, Florida, Texas, and California and basic scientists from multiple institutions to help the communities that are most impacted.

“The SNFiRU international advisory board convenes globally recognized leaders with distinguished biomedical expertise, unrivalled experience in pandemic preparedness and response, and a shared commitment to translating scientific advancements into equitably distributed benefits in real-world settings,” says SNF Co-President Andreas Dracopoulos. “The advisory board will advance the institute’s indispensable mission, which SNF is proud to support as a key part of our Global Health Initiative, and we look forward to seeing breakthroughs in the lab drive better outcomes in lives around the globe.”

The new advisory board will hold its first meeting on April 11th, 2024, following the second annual SNF Institute for Global Infectious Disease Research Symposium at Rockefeller.

Its members are: Rafi Ahmed of Emory University School of Medicine, Cori Bargmann of The Rockefeller University, Yasmin Belkaid of the Pasteur Institute, Anthony S. Fauci, the former director of the National Institute of Allergy and Infectious Diseases, Peter Hotez of Baylor College of Medicine and Texas Children’s Hospital Center for Vaccine Development, Esper Kallas of of the Butantan Institute, Sharon Lewin of the University of Melbourne Doherty Institue, Carl Nathan of Weill Cornell Medicine, Rino Rappuoli of Fondazione Biotecnopolo di Siena and University of Siena, and Herbert “Skip” Virgin of Washington University School of Medicine and UT Southwestern Medical Center.

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