Certain names constantly garner attention in the fluctuating realm of stock trading, and among the most intriguing are the preferred stocks of Michael Burry. Irrespective of personal reservations, Michael Burry is a testament to savvy investing.
Sure Dividend analyzed that those following Burry’s investments would have made an astounding 56% annualized returns from May 2020 to May 2023, juxtaposed against the S&P 500‘s modest 12%. And if that isn’t compelling enough, who can forget how Burry preempted the 2007-2009 mortgage crisis. It was the period when he realized a personal profit of $100 million and amassed $700 million for his investors.
Given these credentials, sidelining his financial guidance could prove incredibly costly. Indeed, this may be the perfect time to invest in these top three Burry stocks.
Stellantis (STLA)
Stellantis (NYSE:STLA) is blazing a trail in the electric vehicle (EV) realm.
With grand designs including vehicles offering an 800 km range, STLA aims to take the EV market by storm. Through Scion Asset Management, Burry has recently anchored $5.7 million, or 5.12% of its portfolio, into STLA. Furthermore, it showcases its commitment to sustainability and future-proofing by planning six global gigafactories targeting 400 gigawatt hours by 2030.
STLA’s first-half financial metrics further accentuate its robust positioning. Financially, it stands strong €8.7 billion free cash flow with a stellar 63% year-over-year rise. Moreover, an adjusted operating income of €14 billion, combined with a commendable 14.4% adjusted operating margin, underscores its operating prowess.
Furthermore, it has a 1.5 billion share buyback program back on the field. And with TipRanks’ optimistic $24.9 price projection with an astounding 36% upside, all signs point to a gleaming future for Stellantis.
MGM Resorts International (MGM)
Scion Asset Management’s portfolio gleams with a $6.59 million investment in MGM Resorts International (NYSE:MGM). This figure represents a significant 5.92%.
MGM, a leading global casino titan, not only dominates with 16 U.S. casino resorts, but due to a massive 56% stake in MGM China, it also boasts two esteemed locations in Macau. Meanwhile, its robust global gaming footprint extends through LeoVegas and a formidable 50% stake in BetMGM.
Additionally, MGM’s latest financial report card is remarkably encouraging. Its second-quarter revenue surged 20.9% year over year (YOY) to a staggering $3.94 billion. It dazzled with an earnings-per-share of 59 cents, outshining the previous year’s four cents. Casino revenue skyrocketed 454% YOY in China, touching $670 million. On top of that, its sports betting income trajectory is on the rise, close to the $2 billion annual sales milestone.
Furthermore, its ambition continues as MGM’s BetMGM venture in the U.K, co-piloted with Entain (OTCPK:GMVHF). This will only further expand its growth trajectory. Additionally, its global sports ties with Formula 1 and Super Bowl reinforce its position as the leader in Las Vegas’s entertainment realm.
Vital Energy (VTLE)
In the dynamic arena of energy, Vital Energy (NYSE:VTLE) stands out, masterfully balancing market demand. Moreover, Michael Burry acquired a new position in VTLE stock worth $5.64 million.
VTLE recently boosted its oil production guidance by a sleek 8%. However, with multiple acquisitions in play, it’s poised to outpace initial forecasts by double-digit margins. Surpassing its own benchmarks, it produced a record 44.4 thousand barrels of oil daily and an aggregated 90,000 barrels of oil equivalent by the Q2 close.
In addition, VTLE’s second-quarter financial results showcase its brilliance. Its revised capital investment guidance of $665 million to $695 million, from an initial $675 million to $725 million, epitomizes its prudent strategy. Furthermore, a free cash flow of a whooping $57 million in the first half is projected to bounce to $150 million as the year closes, bolstered by the smart integration of its acquisition of Forge. The Permian-Earthstone acquisition further illuminates the path for VTLE, with a healthy surge in VTLE’s share price expected. Consequently, the horizon for Vital Energy looks remarkably bright.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
