In this article, we will take a look at the 13 best Nancy Pelosi stocks to buy now. To see more such companies, go directly to 5 Best Nancy Pelosi Stocks To Buy Now.
The US economy and consumer sentiment remained unexpectedly strong throughout 2023. When the year started there were incessant warnings about recession from major finance gurus and investment firms. But as the year rolled on stocks remained strong amid AI-fueled rally and strong consumer spending that also helped companies’ third quarter performance. But many analysts are now warning that the recession that was expected in 2023 could now come in 2024. Mohamed El-Erian, a famous Egyptian-American economists who is also the former CEO of PIMCO, recently gave an interview to the Wall Street Journal in which he talked about his rationale behind his worries regarding a 2024 recession. The economist said:
For the last year when people were saying we are going into recession in 2023, I pushed back. I kept on saying there’s no reason we’re going into recession. This economy is inherently strong. Balance sheets are robust. Now, I must say I’m more worried about 2024. And I’m more worried about 2024 for three reasons. One is the lagged effect of these massive increases in interest rates. They act with a lag. Second is that people’s savings have been run down. And thirdly, the international context has become even more uncertain.
In this backdrop, it makes sense to take a look at what famous US politicians are up to when it comes to stock trades. Former House Speaker Nancy Pelosi has a strong and active history in stock trading as a politician. Nancy Pelosi and her husband Paul Pelosi are known to be regular stock traders. For this article we went through stock filings of Nancy and Paul Pelosi and picked stocks that the former House Speaker or her husband have reported owning in the past three years. Some of these stocks were bought by Nancy or Paul Pelosi but later sold. Some of them are still on their portfolio. The idea was to look at the stocks that gained the attention of the Pelosis.
Best Nancy Pelosi Stocks To Buy Now
13. AllianceBernstein Holding LP (NYSE:AB)
Number of Hedge Fund Holders: 6
Nashville, Tennessee-based asset management company AllianceBernstein Holding LP (NYSE:AB) ranks 13th in our list of the best Nancy Pelosi stocks to buy now. Back in February 2022, the Pelosi family bought 10,000 shares of AllianceBernstein Holding LP (NYSE:AB). It was not a profitable trade. AllianceBernstein Holding LP (NYSE:AB) has lost about 33% over the past one year. Nancy Pelosi’s spouse dumped a partial stake in the company later.
AllianceBernstein Holding LP (NYSE:AB) talked in detail about its Q3 performance and guidance in its latest earnings call:
“Promotion and servicing costs decreased 5% sequentially due to seasonally lower firm meetings and T&E. G&A expenses were essentially flat in the third quarter versus the prior year period and declined 1% sequentially due to lower portfolio services fees. For the full year, we continue to target promotion and servicing and G&A growth below inflation levels up low single digits. Third quarter adjusted operating income of $237 million increased by 13% versus the prior year period and was up 7% sequentially. Third quarter adjusted operating margin of 28% increased 220 basis points year-on-year. As a reminder, last quarter we moved interest expense below the adjusted operating income line in order to facilitate comparability with peers. As shown in footnote two on this slide, interest expense increased by $8 million from the prior year period, reflecting higher interest rates and higher borrowings, and decreased $1 million sequentially reflecting lower average borrowings.
As outlined in the appendix of our presentation third quarter earnings exclude certain items which are not part of our core business operations. In the third quarter, adjusted operating earnings were $62 million above GAAP operating earnings due to acquisition related expenses and interest expense. Non-GAAP EPU was $0.15 above GAP EPU, primarily reflecting acquisition related expenses. The third quarter effective tax rate for ABLP was 5.7%. Our guidance for effective tax rate in 2023 remains approximately 5.5% to 6%. Each year we typically repurchase AB Holding units in the open market to help offset units issued to our Annual Incentive Compensation Process. During the third quarter we repurchased 1.8 million units for $56.9 million. We completed the program in the first week of October.
We continue to expect the national relocation will be accretive for the full year 2023, with compensation related savings more than offsetting increased occupancy cost … [read the full earnings call transcript here]”
12. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 35
In December 2021, Paul Pelosi purchased 100 call options for Roblox with a strike price of $100 and an expiration date of 1/20/23. About 5000 Roblox shares were dumped by the Pelosi family in January at an average price of $26.05 for a total loss of $235,836.
As of the end of the second quarter of 2023, 35 hedge funds had stakes in the company. The biggest stakeholder of Roblox was Catherine D. Wood’s ARK Investment Management which owns a $376 million stake in the company.
Artisan Mid Cap Fund made the following comment about Roblox Corporation (NYSE:RBLX) in its second quarter 2023 investor letter:
“We initiated new GardenSM positions in Keysight, Roblox and Liberty Media Corp–Liberty Formula One during the quarter. Roblox Corporation (NYSE:RBLX) is an online platform that allows users to play games created by other users and to create their own games using the Roblox Studio, a robust suite of development and coding tools. The company’s model is similar to a social network in that user-generated content scales with user growth on the platform and benefits from viral adoption. While the graphics, user interface and general gameplay currently appeal more to younger people, Roblox is pursuing a strategy of investing heavily to accelerate its technological capabilities so that it can provide experiences that appeal to an older demographic. We believe the valuation is justifiable given the stickiness of the core platform (the average user spends 2.4 hours per day on Roblox), its attractive business model and a potential bull case where Roblox becomes a leading place to create and consume social 3D experiences for the general population.
Roblox is another (there are more) example of a company that is well-positioned to benefit from generative AI advancements. As discussed earlier, Roblox is a social gaming platform that relies on user-generated content. This content is enabled by the platform’s robustyet-simple tools for relatively novice developers. AI has the potential to turbocharge this tool set—with AI-assisted code building and generative artwork creation. Over time, this should enable a deeper pool of user-generated content that attracts an expanding set of game players.”
11. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 73
American Express ranks 11th in our list of the best Nancy Pelosi stocks to invest in now. In January last year, Paul Pelosi exercised 50 call options (5,000 AXP shares) expiring 1/21/22 at a strike price of $80 stock. AXP stock has gained about 4.9% year to date through November 12.
Insider Monkey’s database of 910 hedge funds shows that 73 hedge funds had stakes in the company as of the end of the June quarter. The most significant stakeholder of the company was Warren Buffett’s Berkshire Hathaway which owns a $26.4 billion stake in the company.
ClearBridge Large Cap Value Strategy made the following comment about American Express Company (NYSE:AXP) in its Q3 2023 investor letter:
“Other detractors included American Express Company (NYSE:AXP), which fell on concerns over slower consumer spending and rising charge-offs, as well as wireless tower REIT American Tower, which was pressured by the increase in rates along with the broader real estate sector.”
10. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Tesla Inc. (NASDAQ:TSLA) ranks 10th in our list of the best Nancy Pelosi stocks to buy now. Back in March 2022, Nancy Pelosi’s husband Paul Pelosi exercised 25 call options (2,500 TSLA shares) expiring 3/18/22 at a strike price of $500.
As of the end of the second quarter of 2023, 79 hedge funds tracked by Insider Monkey reported having stakes in Tesla Inc. (NASDAQ:TSLA). The biggest stakeholder of Tesla Inc. (NASDAQ:TSLA) during this period was Catherine D. Wood’s ARK Investment Management which owns a $1.3 billion stake in the company.
9. Paypal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 86
Paypal Holdings Inc. (NASDAQ:PYPL) is another famous name that made its way to Nany Pelosi stock portfolio last year when her spouse exercised 50 call options (5,000 PYPL shares) expiring 1/21/22 at a strike price of $100.
As of the end of the second quarter of 2023, 86 hedge funds tracked by Insider Monkey reported having stakes in Paypal Holdings Inc. (NASDAQ:PYPL). The biggest stakeholder of Paypal Holdings Inc. (NASDAQ:PYPL) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $381 million stake in the company.
Wedgewood Partners made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2023 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a detractor from performance during the quarter. Total payment volume grew +11% while revenues grew +8% – both FX-neutral. Adjusted operating earnings grew +20%. E-commerce industry sales trends have normalized back to their pre-pandemic trend of growth, with high-margin branded payments keeping track with the industry. Despite this, investors continue to be concerned that PayPal’s fast-growing private-label payments solutions will dilute Company returns. However, payments is a very scalable business, and the Company will be able to manage both private label and branded for attractive returns and double-digit growth. While multiples in the payment industry have significantly compressed, especially after the multi-year process of being added to the index @inancial sector, PayPal’s businesses are substantially different enough from traditional spread-based businesses; in addition to possessing much more compelling growth drivers, PayPal’s well below market multiple should revert to its higher, historical average.”
8. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 86
Semiconductor company Micron Technology, Inc. (NASDAQ:MU) ranks 8th in our list of the best Nany Pelosi stocks to buy now. Back in December 2021, Paul Pelosi bought 100 call options with a strike price of $50 for Micron.
A total of 86 hedge funds tracked by Insider Monkey reported having stakes in Micron Technology, Inc. (NASDAQ:MU) as of the end of the June quarter.
Micron Technology, Inc. (NASDAQ:MU) bulls believe the company would soon catch up with Nvidia’s competition. In its fiscal Q4 earnings call, Micron Technology, Inc. (NASDAQ:MU)’s management talked about its AI-related plans and future expectations:
“The introduction of our HBM3E product offering has been met with strong customer interest and enthusiasm. Our HBM3E provides superior bandwidth, power and capacity for generative AI workloads. We developed this industry-leading design using our 1-beta technology, advanced TSV, and other innovations that enable a differentiated packaging solution. We have been working closely with our customers throughout the development process and are becoming a closely integrated partner in their AI roadmaps. Micron HBM3E is currently in qualification for NVIDIA compute products, which will drive HBM3E-powered AI solutions. We expect to begin the production ramp of HBM3E in early calendar 2024 and to achieve meaningful revenues in fiscal 2024. Micron also has a strong position in the industry transition to D5.
We expect Micron D5 volume to cross over D4 in early calendar 2024, ahead of the industry. We expanded our high-capacity D5 DRAM module portfolio with a monolithic die-based 128 gigabyte module, and we have started shipping samples to customers to help support their AI application needs. We expect revenue from this product in Q2 of calendar 2024.”
Read the full earnings call transcript here.
7. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 92
The Walt Disney Company (NYSE:DIS) shares shot up recently after the company posted fiscal fourth quarter results which lifted investors’ hopes that Bob Iger’s charm might finally be working as the company successfully cut costs and began to see hope in business. In January 2022, Paul Pelosi exercised 100 call options involving 10,000 DIS shares expiring 1/21/22 at a strike price of $100. The Walt Disney Company (NYSE:DIS) stock was trading at around $88.2 as of November 12, having lost about 6.37% over the past one year.
As of the end of the second quarter of 2023, 92 hedge funds tracked by Insider Monkey had stakes in The Walt Disney Company (NYSE:DIS). The biggest stakeholder of The Walt Disney Company (NYSE:DIS) was Nelson Peltz’s Trian Partners which owns a $574 million stake in the company.
Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:
“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS). The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”
6. Salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Holders: 122
Salesforce.com, inc. (NYSE:CRM) ranks 6th in our list of the top Nany Pelosi stocks to buy now. In December 2021, Nancy Pelosi’s spouse Paul Pelosi purchased 100 call options with a strike price of $210 and an expiration date of 1/20/23.
Of the 910 hedge funds in Insider Monkey’s database, 122 hedge funds were long Salesforce.com, inc. (NYSE:CRM). The biggest stakeholder of Salesforce.com, inc. (NYSE:CRM) was Natixis Global Asset Management’s Harris Associates which owns a stake worth over $1 billion.
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Disclosure: None. 13 Best Nancy Pelosi Stocks To Buy Now is originally published on Insider Monkey.