17 George Soros Stocks that are on Sale Now
In this article, we will discuss the 17 George Soros Stocks that are on sale now. If you want to explore similar stocks, you can also take a look at 5 George Soros Stocks that are on Sale Now.
George Soros is one of the greatest investors of all time, renowned for aggressive investment strategies that have netted him billions of dollars over the years. The 93-year-old billionaire investor is best described as a greedy, impulsive risk taker, market-timer, and short seller who is always ready to go against the grain. Averaging gains of over 30% a year between 1970 and 2000 through the Quantum Fund underscores why he is regarded as one of the greatest in the investment circles.
The stellar performance is down to the Hungarian-American businessman doing what investors are often advised not to do. The market is always efficient, the share price always reflects all relevant information, and that the stock market is always fairly valued; that’s the general thumb rule that most investors always stick to. However, not George Soros; to him, humans are not rational, especially with money. Therefore, the market can never be efficiently priced.
Soros has always stuck to the idea that market prices are inefficient. Instead, they are distorted most of the time from reality.
“My interpretation of financial markets directly contradicts the efficient market hypothesis which has been the prevailing theory about financial markets. That theory three claims that markets tend towards equilibrium deviations occur in a random fashion and can be attributed to extraneous shocks if that theory is valid mine is false and vice versa,” Soros once said.
The theory that markets are never efficient allowed Soros to turn $12 million in seed funding to well over $20 billion using his hedge fund, Soros Fund Management. With a net worth of over $8 billion, Soros could have been much richer, given that he has donated well over $30 billion to charitable causes.
Soros is best remembered as the man who broke the Bank of England, generating a single-day gain of over $1 billion at the expense of the British Pound. Using leverage, Soros took a $10 billion short position on the pound, a trade that ended up being one of the greatest of all time, racking $1 billion in profits as the pound imploded.
The hedge fund manager also bet $1 billion against the Thai baht as the financial crisis was ensuing in 1997. He bet the currency would implode as the Bank of Thailand had run out of ammunition to support the currency. The currency did implode even though the billionaire had generated significant returns before it imploded. With age slowly catching up with the legendary investor, he has had to relinquish control of Soros Fund Management to his 37-year-old son, Alex Soros. He is tasked with managing over $20 billion.
Since 2011, Soros has carried out investment activities through his family office, Soros Fund Management, which most people continue to follow to gain insights into the direction the market is likely to move. The hedge fund relies on diversification to generate returns in the market with stakes in technology companies to healthcare and Industrial goods consumer discretionary. He is also big on renewable energy as one of the proponents of fighting climate change.
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is one of the biggest holdings in the Soros fund, followed by Rivian Automotive, Inc. (NASDAQ:RIVN). Soros also has exposure in the tech industry through Alphabet Inc. (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN), having also made significant investments in Salesforce, Inc. (NYSE:CRM).
Soros has also sought exposure to the artificial intelligence boom with stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA). He has also increased stakes in Meta Platforms, Inc. (NASDAQ:META), heavily invested in AI large language models.
Yet, Soros is sometimes wrong and has endured losses and difficulties in his work. For example, in 2000, he lost about $2 billion when he bet against the rise of technology stocks during the dot-com bubble. In 2016, he lost about $1 billion when he bet against the U.S. stock market after Donald Trump's election victory. In 2018, he faced criticism and backlash from some governments and groups for his support of liberal causes and organizations.
Soros admits his mistakes and learns from them. He invests based on "reflexivity", which means markets are shaped by people's actions and beliefs. He adapts his strategies to changing situations. With this angle in mind let's explore 17 George Soros stocks that are on sale now.
Our methodology
While the overall market has turned bullish in 2023, some stocks in the Soros hedge fund have been on the receiving end amid deteriorating macro conditions. We have compiled a list of the stocks that have shed a significant amount of market value and underperformed the S&P 500, which is up by about 15%. The stocks are ranked chronologically based on their year-to-date losses. Moreover, we looked into the perspectives of 910 hedge funds in our database on each stock at the end of Q2 2023.
George Soros stocks that are on Sale now
17. Blue Apron Holdings, Inc. (NYSE:APRN)
Year to Date Loss: 30%
Number of Hedge Fund Holders: 2
Blue Apron Holdings, Inc. (NYSE:APRN) operates a direct-to-consumer platform that delivers original recipes with fresh and seasonal ingredients. Likewise, it operates an e-commerce platform that offers cooking tools, utensils, pantry items, and other products.
The home meal kit delivery company has underperformed in the market for the better part of the year, a situation compounded by a worsening debt situation. It has seen its sentiments take a hit on slowing growth amid increasing competition and soaring inflation.
Blue Apron Holdings, Inc. (NYSE:APRN) was down by about 30% before it emerged. It is an acquisition target for Wonder Group, which has agreed to purchase it for $13 a share, representing a 137% premium. APRN shares currently trade at $12.83 a share and more than doubled before we are able to publish this article.
16. Norfolk Southern Corporation (NYSE:NSC)
Year to Date Loss: 13%
Number of Hedge Fund Holders: 51
Norfolk Southern Corporation (NYSE:NSC) is a company that underscores Soros' investment in the Industrial sector. The company engages in rail transportation of raw materials. It transports agriculture, forest, and consumer products.
Norfolk Southern Corporation (NYSE:NSC) is down by 23% year to date after shedding 13% in market value last year. Wall Street has a Moderate Buy rating on the stock with a $246.31 price target, implying a 25.07% upside potential to current levels.
15. Canada Goose Holdings Inc. (NYSE:GOOS)
Year to Date Loss: 14%
Number of Hedge Fund Holders: 7
With its subsidiaries, Canada Goose Holdings Inc. (NYSE:GOOS) designs, manufactures, and sells performance luxury apparel for men, women, youth, and children. The company has seen its prospects take a significant hit amid waning consumer spending power with persistent Inflationary pressure.
Early in the year, the company struck a cautious note on its business amid easing luxury spending in the US. Canada Goose Holdings Inc. (NYSE:GOOS) said it expects full-year earnings of between $1.20 and $1.48, lower than estimates of $1.46. The stock is down by about 26% year to date compared to 155 gain for the S&P 500.
14. RingCentral, Inc. (NYSE:RNG)
Year to Date Loss: 14%
Number of Hedge Fund Holders: 37
Soros's exposure in the burgeoning cloud segment is further firmed by stakes in RingCentral, Inc. (NYSE:RNG), which provides cloud communications, video meetings, and collaborative contact center solutions. The company’s sentiments took a hit after founder long-term CEO Vlad Shmunis announced he was stepping down in August.
The announcement came as RingCentral, Inc. (NYSE:RNG) delivered impressive Q2 results but offered disappointing guidance. Revenue in the quarter was up 11% to $539 million. It is one of the stocks in the red in Soros's portfolio, having shed 14% in market value year to date. Nevertheless, analysts on Wall Street maintain a Moderate Buy rating on the stock with a $43.70 price target, implying 47.49% upside potential.
13. BlackLine, Inc. (NASDAQ:BL)
Year to Date Loss: 20%
Number of Hedge Fund Holders: 23
Soros Fund Management holds stakes in BlackLine, Inc. (NASDAQ:BL), a company that offers cloud-based solutions for automating and streamlining accounting and finance operations. The company provides financial close management solutions for account reconciliation.
BlackLine, Inc. (NASDAQ:BL)'s poor run that began last year and saw it lose about 28% in market value has persisted in 2023. The stock is already down by 20% year to date. The stock is currently rated as a Hold with a $59.0 price target, implying a 7.99% upside potential from current levels.
12. Alteryx, Inc. (NYSE:AYX)
Year to Date Loss: 21%
Number of Hedge Fund Holders: 39
Alteryx, Inc. (NYSE:AYX) operates an analytic process automation platform that allows organizations to enhance business outcomes and the productivity of business analyst data scientists and data engineers. It was one of the biggest losers in Soros's portfolio after dropping by 28% in August on delivering slowing sales that fell below expectations.
Slowing sales saw Alteryx, Inc. (NYSE:AYX) deliver a 4% increase, half an 8% increase that analysts expected. A 22% growth in annual recurring revenue also suggests things are not okay in the company as it struggles amid deteriorating macroeconomic conditions.
The company is exploring a potential business sale as it faces stiff competition from Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NYSE:ORCL). Amid the sale push, the stock is still rated as Moderate Buy with a $48.57 price target, implying a 28.87% upside potential to current levels.
11. Sea Limited (NYSE:SE)
Year to Date Loss: 21.8%
Number of Hedge Fund Holders:
Soros turned to Sea Limited (NYSE:SE) to gain exposure in the digital entertainment e-commerce and digital financial sector. The company offers a platform that allows people to access mobile and PC games and sports operators. It also operates an e-commerce platform and provides financial services.
In August, Sea Limited (NYSE:SE)’s shares tumbled by more than 28% after the rampant missed sales estimates and indicated plans to increase spending on e-commerce, a move that could lead to further losses. While the company has increased spending on e-commerce, such spending has only led to losses, which continues to spook investors.
A slide that began in late 2021 shows no signs of slowing down, with the stock down by 21.8% year to date. Last year, the stock fell by about 73%.
Amid the underperformance of Wall Street rates, Sea Limited (NYSE:SE) has a Moderate Buy with a $66 price target, implying a 50% upside potential.
10. NIKE, Inc. (NYSE:NKE)
Year to Date Loss: 23%
Number of Hedge Fund Holders: 70
NIKE, Inc. (NYSE:NKE) and its subsidiary are a footwear and accessories company that designs, develops, and markets athletic footwear apparel equipment and services worldwide. It provides athletic and casual footwear apparel and accessories under the jump man trade wear.
Deteriorating earnings has been NIKE, Inc. (NYSE:NKE)’s biggest undoing, having reported its first revenue loss for the first time in two years. In its fiscal first quarter, it delivered $12.94 billion in revenue, missing $12.98 billion expected. Heightened inflation has seen most people cut back spending on footwear and other accessories. Nike has also struggled amid slowing growth in China
NIKE, Inc. (NYSE:NKE) has underperformed the overall market as it is down by 23% years to date compared to a 15% gain for the S&P 500. Despite the underperformance, the stock is still rated as a moderate Buy with a $120.54 price target implying a 26.06% upside potential
9. RTX Corporation (NYSE:RTX)
Year to Date Loss: 30%
Number of Hedge Fund Holders: 56
Soros has also diversified his holdings into the aerospace and defense sector with stakes in RTX Corporation (NYSE:RTX). The company provides systems and services for commercial, military, and government customers. It has four segments: Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense.
RTX Corporation (NYSE:RTX)'s sentiments have significantly hit following a massive recall of its most popular aircraft engine. The recall is expected to result in $3 billion in charges. Likewise, the stock has tumbled by about 30% year to date. Nevertheless, the stock is still rated as a Moderate Buy with an $88.29 price target, implying a 22.68% upside potential to current levels.
8. SPDR S&P Regional Banking ETF (NYSEARCA:KRE)
Year to Date Loss: 32%
Number of Hedge Fund Holders: N/A
Soros has also sought to gain exposure in the financial sector through exchange-traded funds. SPDR S&P Regional Banking ETF (NYSEARCA:KRE) is one of the ETFs in the legendary investor portfolio that tracks the performance of regional banks in the US.
With regional banks trying to bounce back from the banking crisis early in the year, the ETF has continued to underperform the overall market. The ETF is down by about 32% year to date.
7. The Beauty Health Company (NASDAQ:SKIN)
Year to Date Loss: 33%
Number of Hedge Fund Holders: 18
The Beauty Health Company (NASDAQ:SKIN) is a company that designs, develops, manufactures, and sells aesthetic technologies and products worldwide. Its flagship product, HydraFacial, enhances the skin to cleanse, extract, and hydrate it with proprietary solutions and serums.
The Beauty Health Company (NASDAQ:SKIN) has underperformed in 2023 as investors react to demand trends for its products slowing. Revenue in the first quarter was only up 14% compared to 41% last year. The stock did receive a boost after the company announced a business reorganization and a stock repurchase program
Nevertheless, The Beauty Health Company (NASDAQ:SKIN) is down by 33% year to date. The stock is also rated as a Moderate Buy with a $12.33 price target, implying 104% upside potential.
6. Block, Inc. (NYSE:SQ)
Year to Date Loss: 38%
Number of Hedge Fund Holders: 66
Block, Inc. (NYSE:SQ) develops tools for sellers to take card payments and get reports and analytics. It also includes hardware products, including Square Register, point-of-sale software, and payment technology.
When Block, Inc. (NYSE:SQ) went public, it was a hot tech stock that attracted the likes of George Soros on its ability to develop fintech solutions. Nevertheless, the company has faced a myriad of challenges, among them struggling to be profitable.
Block, Inc. (NYSE:SQ) is down by 38%, dragging George Soros's portfolio lower. However, analysts are still bullish with a Strong Buy rating and an $85.72 price target, implying a 93.67% upside potential.
Click to continue reading and see 5 George Soros Stocks that are on Sale Now.
Suggested articles:
Disclosure: None. 17 George Soros Stocks that are on Sale Now is originally published on Insider Monkey.