9 Hedge Fund Favorites With Barclays Buy Ratings

When an investment bank or other such specialized institution gives a stock a “buy rating,” they are advising investors they believe them likely to yield high returns. In other words, these stocks could be a good investment. For your benefit, we have gathered “Overweight” (strong buys) ratings from one of the top investment banks out there, Barclays Capital, and made a list to help you make your investment decisions.

To narrow down our list of “overweight” stocks, we also looked for bullish signals from institutional investors. Institutional investors are basically organizations who specialize in investing in stocks and other securities. This includes hedge funds, mutual funds and investments banks, which employ expert analysts to evaluate stocks before investing in them. These organizations seek to make profits on the stocks they buy, therefore, their portfolios can act as a good indicator for which stocks might be profitable.

Business Section: Investing Ideas

The following “Overweight” stocks are very popular among institutional investors at the moment. Do you think this reflects good prospects for these companies in the future? Use this list as a starting point for your own analysis.

For a similar list, see: Barclays has “Overweight” Ratings on these 9 Stocks, But Institutions are Still Selling

 

1. Cornerstone OnDemand, Inc. ( CSOD, Earnings, Analysts, Financials): Provides learning and talent management solution delivered as software-as-a-service. Market cap at $1.37B, most recent closing price at $27.28. On 12/06/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 2.5M shares, which represents about 7.22% of the company’s float of 34.65M shares.

 

2. Corrections Corporation of America ( CXW, Earnings, Analysts, Financials): Operates privatized correctional and detention facilities in the United States. Market cap at $3.31B, most recent closing price at $33.11. On 12/13/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 9.1M shares, which represents about 9.25% of the company’s float of 98.36M shares.

 

3. Cymer Inc. ( CYMI, Earnings, Analysts, Financials): Engages in the development, manufacture, and marketing of excimer light sources for the manufacturers of photolithography tools in the semiconductor equipment industry. Market cap at $2.48B, most recent closing price at $79.58. On 01/03/2012, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 2.3M shares, which represents about 7.98% of the company’s float of 28.84M shares.

 

4. Informatica Corporation ( INFA, Earnings, Analysts, Financials): Provides enterprise data integration and data quality software and services worldwide. Market cap at $2.88B, most recent closing price at $26.65. On 12/06/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 6.3M shares, which represents about 6.21% of the company’s float of 101.52M shares.

 

5. Lululemon Athletica Inc. ( LULU, Earnings, Analysts, Financials): Engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth primarily in Canada, the United States, and Australia. Market cap at $7.79B, most recent closing price at $69.80. On 12/02/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 5.2M shares, which represents about 5.14% of the company’s float of 101.18M shares.

 

6. NetSuite Inc. ( N, Earnings, Analysts, Financials): Provides an on-demand integrated business management application suite to businesses and divisions of companies worldwide. Market cap at $4.31B, most recent closing price at $60.10. On 12/06/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 2.4M shares, which represents about 8.32% of the company’s float of 28.84M shares.

 

7. Pacira Pharmaceuticals Inc. ( PCRX, Earnings, Analysts, Financials): Engages in the development, commercialization, and manufacture of pharmaceutical products for hospitals and ambulatory surgery centers. Market cap at $528.94M, most recent closing price at $16.25. On 12/09/2011, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 7.7M shares, which represents about 33.71% of the company’s float of 22.84M shares.

 

8. RPX Corporation ( PRXC, Earnings, Analysts, Financials): Provides patent risk management solutions in the United States, Europe, and Asia. Market cap at $449.51M, most recent closing price at $8.84. On 01/03/2012, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 3.4M shares, which represents about 13.82% of the company’s float of 24.61M shares.

 

9. Weight Watchers International, Inc. ( WTW, Earnings, Analysts, Financials): Provides weight management services worldwide. Market cap at $3.15B, most recent closing price at $56.68. On 03/09/2012, Barclays Capital had a Overweight rating on the stock. Net institutional purchases in the current quarter at 28.4M shares, which represents about 51.24% of the company’s float of 55.43M shares.

 

 

On average, analysts seem to agree with Barclay’s optimism, but not as strongly. Click play to see how average analyst ratings have changed over the past two years:

Written by Fay Faatin

Analyze These Ideas: Getting Started

 

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