From technological advancements to shifts in consumer behavior, the variables influencing stock performance on Wall Street are numerous. However, Paul Tudor Jones’ recent moves highlight his confidence in specific sectors that promise robust growth and stability. These include technology, green energy, and consumer goods €”areas that not only align with current market trends but also resonate with forward-thinking investment strategies.
Many on Wall Street note that the firm’s approach is meticulous, focusing on diversification, market timing, and, most importantly, resilience in the face of market volatilities. For those looking to invest like a hedge fund king, understanding the dynamics behind Jones’ choices is important. Therefore, today we discuss three Paul Tudor Jones stocks and exchange-traded funds (“ETFs”), handpicked from his portfolio, representing a unique blend of stability and growth potential.
Stocks Backed by Paul Tudor Jones: UnitedHealth Group (UNH)
Among Paul Tudor Jones stocks we are covering is the diversified health care company UnitedHealth Group (NYSE:UNH). The business operates through four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. These units focus on a wide range of health care needs, from insurance coverage and benefits to pharmacy care services and health management solutions. UnitedHealth’s integrated business model allows it to serve millions of patients, leveraging vast data insights while managing costs effectively.
In the first quarter of 2024, UnitedHealth Group reported strong performance across its business segments. As a result, revenues came in at $99.8 billion, up nearly $8 billion year-over-year (YoY). Management grew its commercial benefits significantly, adding 2 million more people. Optum Health is on track to expand its value-based care arrangements, while Optum Rx saw a 12% revenue growth. Despite challenges such as the recent cyberattack, the company reaffirmed its full-year adjusted earnings outlook.
Looking ahead, UnitedHealth Group is focused on modernizing the health care system and expanding its value-based care offerings, which are expected to drive sustainable long-term growth. The reaffirmed long-term earnings-per-share (“EPS”) growth objective of 13-16% highlights the company’s confidence in its strategic direction and operational capabilities. In addition, UnitedHealth Group’s significant investments in technology, particularly in data analytics and telehealth, are expected to drive future growth.
Year-to-date, UNH stock has traded flat, in part due to Wall Street concerns over the Change Healthcare cyberattack. Meanwhile, the current dividend yield is 1.4% and the shares are trading at 19 times forward earnings. Analysts are eyeing an upward move of over 8% in the 12 months ahead. If you’re looking for a robust business model and a strategic approach to growth and innovation in the health care market, then UnitedHealth Group stock needs to be on your radar. Easily, this is one of the best stocks backed by Paul Tudor Jones.
Zoetis (ZTS)
Animal health heavyweight Zoetis (NYSE:ZTS) is the next company among our featured Paul Tudor Jones stocks. The company develops animal health medicines and vaccines, serving a large market, including livestock and companion animals.
At present, Zoetis has a market capitalization (cap) of approximately $80 billion. Zoetis’s first quarter of 2024 was marked by a 12% operational revenue growth and a 15% increase in adjusted net income. The company has raised its operational guidance for 2024. There has been strong demand for its companion animal products and robust performance across its parasiticide and dermatology franchises. The launch of new products like Librela and Solensia for osteoarthritis in dogs and cats has also contributed to recent growth.
Analysts remain optimistic about Zoetis’s financial performance, projecting a steady increase in EPS” in the coming years. For the fiscal year 2024, the mean EPS estimate stands at $5.77. Expectations rise to $6.37 by 2025 and $7.02 by 2026. Meanwhile, Zoetis continues to expand its presence in emerging markets, where the demand for animal healthcare products is growing rapidly. The company’s focus on countries such as China, Brazil, and India positions it well to capture growth opportunities in these regions.
Yet, so far in 2024, ZTS stock has declined about 11.5%, while the shares are changing hands at a forward price-to-earnings (“P/E”) ratio of 30x. Finally, the current 12-month price forecast suggests a potential increase of over 25%. Interested readers should also note the dividend yield of 1%.
SPDR S&P 500 ETF Trust (SPY)
We end our discussion of Paul Tudor Jones stocks with an ETF, namely the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which gives access to the S&P 500 index, the barometer for the U.S. market. The index, managed by S&P Global (NYSE:SPGI), is a market-capitalization-weighted index comprising 500 of the largest publicly traded companies stateside. It covers approximately 80% of available market cap. As of May 2024, the total market cap of the S&P 500 stands at approximately $44 trillion. About a year ago, it was around $34 trillion.
Meanwhile, the SPDR S&P 500 ETF Trust is one of the widely traded and largest ETFs in the world. At present, SPY manages over $525 billion in assets. In terms of sectors, information technology leads the list with 30%. Then we see financials (30%), health care (12%), communication services (9%), and industrials (8%), among others. Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN) are SPY’s four largest holdings, comprising about 22% of the fund’s roster.
As of date, SPY has posted a YTD gain of approximately 11%. This alignment with the resturn of the S&P 500 index underscores the ETF’s effectiveness in providing exposure to the index. Potential investors should also note the dividend yield of 1.3% and the annual expense ratio of 0.09% for SPY while they may consider the fund as a Paul Tudor Jones stock. If you are looking for stocks backed by Paul Tudor Jones, make sure you grab this one.
On the date of publication, Tezcan Gecgil 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.
Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.