For the past 15 years, investment guru Ken Fisher's stock picks have outperformed the overall market by more than 5% on average each year. So when money guys like Fisher make big moves, investors of all sizes pay attention. Lucky for us, money managers must disclose their stock moves every quarter.
Let's take a closer look at five stocks Fisher bought last quarter, according to Fisher Asset Management's most recent 13F SEC filing.
In the first quarter, Fisher bought stocks of Coinstar (NASDAQ:OUTR), semiconductor company Vishay Intertechnology (NYSE:VSH), and biotech firm AbbVie (NYSE:ABBV). As a provider of automated retail solutions, Coinstar's Redbox kiosks give customers access to movies and video games. Even though Redbox combines DVD rentals with online streaming content (through its partnership with Verizon) , Redbox must change its business model if it wants to keep up with Netflix and continue to grow. Even though the stock is popular with short sellers, Fisher feels differently. He backed up the truck and loaded up on Coinstar last quarter.
Two-billion-dollar market cap Vishay Intertechnology's last quarter beat on both revenue and earnings. Investors like Fisher are hoping that future earnings will also come in favorably. So far, the stock has had a nice run this year. Meanwhile, AbbVie stock, which spun off from Abbott Laboratories at the beginning of 2013, is up roughly 30% so far this year. Undoubtedly, Fisher likes that the biopharmaceutical company boasts not only an impressive drug portfolio including blockbuster anti-inflammatory drug Humira, but also a great deal of opportunities in the hepatitis C market.
Coinstar, Vishay Intertechnology, and AbbVie possess forward price-to-earnings ratios of 10, 12, and 14, respectively. By comparison, the P/E ratio of the S&P 500 is currently 18, signaling that these stocks may be undervalued. Our Motley Fool CAPS community rates Coinstar as a three-star (out of five) stock. Meanwhile, the CAPS community has a much more favorable outlook for Vishay Intertechnology and AbbVie, which both are crowned five-star stocks.
Fisher also bought both Genpact Limited (NYSE:G) and Fidelity National Information Services (NYSE:FIS) stocks. Business management and IT services company Genpact beat on both revenues and earnings last quarter. Its stock currently trades at a forward price-to-earnings ratio of 17. Meanwhile, trading at a forward P/E of 13, Fidelity National Information Services operates in more than 100 countries. The company provides processing services to financial institutions and recently acquired mobile banking service provider mFoundry. Our Motley Fool CAPS community rates Genpact and Fidelity National Information Services as two-star and three-star stocks, respectively.
Foolish final thoughts
Of these stocks, I like AbbVie right now. I think the long-term trends for the biopharmaceutical industry are favorable, and AbbVie is well positioned with its underappreciated pipeline of drugs. But don't take Fisher's (or my) opinion as the last word. Conduct your own research and formulate your own thesis. You'll be a better investor for it.