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James Li
James Li
Articles (1173)  | Author's Website |

6 High Financial Strength Stocks John Rogers and Paul Tudor Jones Agree On

The two hedge fund gurus believe it is a good time to buy

As markets attempt to rebound from lows stemming from the coronavirus outbreak, six high financial strength stocks John Rogers (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) agree on are Cardinal Health Inc. (NYSE:CAH), Costco Wholesale Corp. (NASDAQ:COST), EOG Resources Inc. (NYSE:EOG), Keysight Technologies Inc. (NYSE:KEYS), Microsoft Corp. (NASDAQ:MSFT) and Tiffany & Co. (NYSE:TIF).

The All-in-One Guru Screener, a Premium feature, allows users to find stocks that multiple gurus own. Figure 1 illustrates an example for Rogers and Jones.

Figure 1

Select the gurus you wish to combine the portfolios for from the “ALL Gurus” section and add them to the “Selected” section. Then, select the required minimum number of gurus owning shares using the “Current Hold Count” filter.

Dow continues three-day rally on Senate stimulus bill

The Dow Jones Industrial Average closed at 22,552.17, up 1,351.62 points or 6.38% from Wednesday’s close of 21,200.55 on the back of the Senate’s unanimous approval of a $2 trillion coronavirus relief package as it aims to stem the pandemic’s effect on American lives and wallets. Boeing Co. (NYSE:BA) and Walgreens Boots Alliance Inc. (NASDAQ:WBA) led the Dow’s surge, increasing over 13% and 10% for the day.

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The Senate’s stimulus bill comes during a day where the U.S. Department of Labor Statistics reported 3.28 million jobless claims for the week ending March 21 as the virus outbreak forces people to shelter-in-place around the U.S. According to John Hopkins University data, the number of cases reached nearly 500,000 around the globe with at least 69,000 cases in the U.S.

Gurus share perspectives on the market in the upcoming months

Jones, founder of Tudor Investment Corp., said on CNBC’s “Squawk Box” Thursday morning that while the markets might go through a “challenging” April as investors continue monitoring the virus outbreak, stocks might start rallying three to five months from now “once we get a peak in the epidemic curve.”

Jones’ comments follow Rogers’ statements Wednesday night that now might be “a maybe once in a lifetime opportunity to buy stocks at bargain prices.” The Ariel Investments founder noted that legendary investor Sir John Templeton famously said “buy when there is maximum pessimism.”

Cardinal Health

Rogers owns 694,625 shares of Cardinal Health as of December quarter-end, while Jones owns 9,518 shares.

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The Dublin, Ohio-based company engages in wholesale pharmaceutical and medical products. According to GuruFocus, the company has a 4.5-star business predictability rank, which suggests strong and consistent revenue and earnings growth over the past 10 years.

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GuruFocus ranks the company’s valuation 8 out of 10 on several positive investing signs, which include a price-sales ratio near a 10-year low and that outperforms 87.69% of global medical distribution companies.

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Other gurus with holdings in Cardinal Health include Charles Brandes (Trades, Portfolio)’ Brandes Investments and Jim Simons (Trades, Portfolio)’ Renaissance Technologies.

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Costco

Rogers and Jones own 44,912 and 1,866 shares of Costco as of December 2019.

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The Issaquah, Washington-based company’s members can shop in its warehouses, which feature products near wholesale pricing. GuruFocus ranks Costco’s profitability 8 out of 10 on several positive investing signs, which include expanding operating margins, a five-star business predictability rank and a return on equity that outperforms 89.18% of global competitors.

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Other gurus with holdings in Costco include Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) and Ken Fisher (Trades, Portfolio).

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EOG Resources

Rogers owns 922,831 shares of EOG Resources, while Jones owns 65,784 shares.

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The Houston-based company produces oil and gas in areas like the Permian Basin, Eagle Ford and Bakken. GuruFocus ranks EOG Resources’ profitability 7 out of 10 on the back of margins and returns outperforming over 80% of global competitors despite a modest Piotroski F-score of 5.

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Keysight Technologies

Rogers owns 1,161,024 shares of Keysight Technologies, while Jones owns 24,299 shares.

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The Santa Rosa, California-based company provides electronic design and test solutions to the communication and electronics industries. GuruFocus ranks the company’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and operating margins that are outperforming over 92% of global competitors despite contracting over the past five years.

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Microsoft

Rogers owns 2,091,981 shares of Microsoft, while Jones owns 14,017 shares.

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Founded by Bill Gates (Trades, Portfolio), the Redmond, Washington-based company develops and licenses well-known software products like Windows and Office 365. GuruFocus ranks Microsoft’s profitability 10 out of 10 on several positive investing signs, which include a four-star business predictability rank, expanding operating margins, a high Piotroski F-score of 8 and a return on equity that outperforms 95.89% of global competitors.

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Tiffany

Rogers and Jones own 188,015 shares and 162,039 shares of Tiffany as of December 2019.

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GuruFocus ranks the New York-based jeweler’s profitability 8 out of 10 on several positive investing signs, which include margins and returns that are outperforming over 83% of global competitors.

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Disclosure: The author is long Costco. Stocks and number of shares data mentioned in this article reflect holdings as of the December 2019 13-F filing and do not include buys, sells, short positions and portfolio hedges from the first quarter.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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