2 Stocks Top Global Fund Managers Have Been Buying
Some of the industry’s best stock-pickers are buying these names—but should you?
Susan Dziubinski: I’m Susan Dziubinski with Morningstar. To find new investing ideas to research further, we often peek into the portfolios of some of our favorite fund managers. Today we’re looking at some of the recent buys of two top-rated money managers who run concentrated funds in Morningstar’s global large-stock growth category.
The management teams of GQG Partners Global Quality Equity GQRRX and T. Rowe Price Global Stock PRGSX picked up shares of Eli Lilly LLY and Broadcom AVGO during the most recent quarter. Are these stocks attractive buys today from Morningstar’s perspective? Let’s go through them one by one.
2 Stocks Top Global Fund Managers Have Been Buying
Eli Lilly stock has performed phenomenally during the past couple of years, thanks to investor enthusiasm around the firm’s GLP-1 drugs Mounjaro and Zepbound. The stock has pulled back a bit, however, since hitting its all-time high in August. Morningstar thinks Lilly has a lot going for it. For starters, we think this wide-moat company is likely to remain the largest player in a potential $200 billion global GLP-1 market by 2031. And we think Lilly holds industry-leading growth potential as it launches several new blockbusters and as patent losses fade. But Lilly’s stock nevertheless looks unattractive. We think shares are worth $580, and they trade well above that.
What about Broadcom? Is this stock pick from these two top managers a buy today? Well, Morningstar considers Broadcom to be a tech giant with a wide economic moat and growing upside from artificial intelligence. While Broadcom’s non-AI semiconductor revenue remains weak, we expect these non-AI chip markets to rebound over the coming quarters. We also expect strong growth for the company over the next five years, driven by AI chip demand. Today, Broadcom’s stock is one to keep on a watchlist for now: We think the stock is worth $155 per share.
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Morningstar director Karen Andersen and analyst William Kerwin provided the research behind this report.
Watch Top Value Managers Are Buying These 4 Stocks for more from Susan Dziubinski.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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