Bill Miller, who owns hedge fund Miller Value Partners, is known for his stock-picking strategies and investing perspective. His perspective is that one must thoroughly scrutinize the stock to gauge its core value first fully. He believes there will be a strong performance of stocks in 2021 as economic conditions are now changing with the easing of COVID-19 restrictions.
Below you can find Bill Miller’s Top 10 stock picks that will outperform the market in 2021.
Alibaba Group Holding Limited is the Chinese e-commerce giant. Miller Value Partners benefited when Alibaba’s shares increased by 200%. Its reported annual revenue of $23.9B. Facebook, another giant in this list, has stock prices surged in 2020 but is beginning to fall off this 2021. It may not be that stakeholders shift towards value stocks instead. However, because Facebook ads are still rampant for small businesses because of the pandemic, the value of Facebook will still rise.
ADT Inc, a security and smart home solutions company, had a strong performance in 2020 but is currently underperforming at the start of 2021. However, this seems not to be a problem because, with continued subscriber growth, good customer retention, and new product lines ADT Inc will surely boost revenue.
OneMain Holdings Inc, a financial service company, and Stitch Fix, known for its apparel goods, has had a good performance in 2020 despite the pandemic. OneMain Holding is a top performer, with a net income of $836 million. Its credit quality remains excellent. The shares of Stitch Fix grew by 38%; it has been said that moving online has helped in generating solid returns and more investors.
Desktop Metal Inc and Amazon have good performance at the end of 2020. With company mergers and robust business models, both companies have shown consistent growth and are expected to continue it this 20201.
DXC Technology Company is a global IT service company that underperformed in 2020. However, Miller still holds high regard for DXC; with a new CEO on-board, the company will now focus on improving relationships, reducing capital intensity, and introducing cross-selling initiatives that will have good potential for its shares.
Farfetch Limited is the 2nd largest stock holding of Miller value Partners. New global partnerships have helped boost their performance wherein have been significant price gains of the stock in 2020
Investor Bill Miller’s top pick is Uber Technologies. It is the most significant stock investment of Miller Value Partners, valued at $266 million. A portion of Uber Technology’s growth is seen in UberEats’ sales because of the pandemic. The company is expected to grow more because of new business ventures, company acquisitions, and joint ventures with other global companies.
You can read more about Value Investor Bill Miller’s Top 10 Stock Picks on Insider Monkey.
