10 Best Single Digit Stocks to Buy Right Now

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6. UWM Holdings Corporation (NYSE:UWMC)

Share Price: $3.09

Number of Hedge Fund Holders: 40

UWM Holdings Corporation (NYSE:UWMC) is one of the best single digit stocks to buy right now. On May 15, Keefe, Bruyette & Woods reiterated its Market Perform rating on UWM Holdings Corporation (NYSE:UWMC) with a $4.50 price target on the stock.

The research firm shared its comments after the company’s recent investor day. The event highlighted the company’s operations, which supported growth and built UWM Holdings Corporation’s (NYSE:UWMC) position as a leading mortgage originator.

The company’s management pointed out that it sees further opportunities for growth as the company’s broker channel share could rise above 50% from the current 28%. UWM Holdings Corporation (NYSE:UWMC) is bringing servicing in-house, and the management also noted that a potential Two Harbors acquisition could help accelerate growth in mortgage servicing rights.

However, management added that such a deal is not essential for the company’s success, pointing out that UWM Holdings Corporation (NYSE:UWMC) already originates about $200 billion in annual volume. This, in terms of the mortgage servicing rights pool, is larger than Two Harbors’ unpaid principal balance.

According to Keefe, Bruyette & Woods, management also indicated that it is more open to considering a dividend cut to address higher leverage.

UWM Holdings Corporation (NYSE:UWMC) is the indirect parent company of United Wholesale Mortgage (UWM), which is the largest wholesale mortgage lender in the US.

While we acknowledge the potential of UWMC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UWMC and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Single Digit Stocks to Buy Right Now.

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