In this article, we will discuss the 10 cheap stocks to buy according to Louis Navellier’s hedge fund.
Louis G. Navellier, one of Wall Street’s most popular and renowned growth investors, is the founder and Chief Investment Officer (CIO) of Navellier & Associates. His investment firm is based in Reno, Nevada. For more than three decades, Navellier has been a prominent voice and advisor to tens of thousands of investors in the US. New York Times described him as “an icon among growth stock investors.” Navellier is the editor of four investing newsletters published by InvestorPlace Media, LLC named Emerging Growth (formerly known as MPT Review), Blue Chip Growth, Quantum Growth, and Global Growth. According to Hulbert Financial Digest, his longest-running publication ‘Emerging Growth’ has garnered 5387.9% returns in the last 22 years, outpacing the S&P 500. He has also authored a BusinessWeek bestseller titled “The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing” in 2020.
Founded in 1987, Navellier & Associates is a money management firm that delivers customized portfolio strategies for individual investors based on a close analysis of market trends and inefficiencies.
Some of the notable stocks in Louis Navellier’s hedge fund’s Q2 portfolio include NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Zoom Video Communications, Inc. (NASDAQ:ZM).
Louis Navellier of Navellier & Associates
Our Methodology
We picked 10 notable stocks priced under $10 from Louis Navellier’s hedge fund’s portfolio as of the second quarter of 2021.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Cheap Stocks to Buy According to Louis Navellier’s Hedge Fund
10. inTEST Corporation (NYSE:INTT)
Navellier’s Stake Value: $474,000
Percentage of Navellier’s 13F Portfolio: 0.07 %
Number of Hedge Fund Holders: 08
Price as of October 20: $10.73
inTEST Corporation (NYSE:INTT) is a global manufacturer and supplier of precision-engineered solutions. Founded in 1981, inTEST Corporation has been serving the semiconductor industry for decades with its test and process solutions.
As of the second quarter of 2021, inTEST Corporation recorded an EPS of $0.27, beating the analysts’ estimate by $0.02. Following these results, investment advisory Lake Street maintained a Buy rating on inTEST Corporation stock and raised the price target from $11 to $16.
In October, inTEST also announced its successful acquisition of all the substantial assets of Z-Sciences Corp., an ultra-cold storage solutions developer. The company did not disclose the terms of the acquisition.
As of the second quarter of 2021, 8 hedge funds held positions in inTEST Corporation, up from 4 in the previous quarter.
9. United Microelectronics Corporation (NYSE:UMC)
Navellier’s Stake Value: $6,949,000
Percentage of Navellier’s 13F Portfolio: 1.04 %
Number of Hedge Fund Holders: 10
Price as of October 20: $10.65
United Microelectronics Corporation (NYSE:UMC), a Hsinchu-based Taiwanese company, was a spin-off of the government-sponsored Industrial Technology Research Institute. It was Taiwan’s first semiconductor company. The company secures the 9th position in our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund.
As per the latest data, Navellier owns 735,322 shares in United Microelectronics Corporation worth over $6.9 million as of the second quarter of 2021. For the same period, a total of 10 hedge funds have a cumulative stake worth $141.2 million in the stock.
In the latest quarter earnings, United Microelectronics Corporation beat the analysts’ estimate by $0.03 by recording an EPS of $0.18. In September, UMC reported sales up by 29.01%, worth NT$18.75 million.
Despite the stock being range-bound in the first half of the year, the United Microelectronics Corporation stock received upgrades in summer 2021. The stock rating was upgraded to Conviction Buy from Buy at Goldman Sachs and Overweight from Neutral at JPMorgan on “stronger for longer” margins.
Apart from United Microelectronics Corporation, Louis Navellier also has a stake in popular stocks like NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Zoom Video Communications, Inc. (NASDAQ:ZM).
8. Himax Technologies, Inc. (NASDAQ:HIMX)
Navellier’s Stake Value: $924,000
Percentage of Navellier’s 13F Portfolio: 0.13 %
Number of Hedge Fund Holders: 16
Price as of October 20: $10.65
On the 8th position in our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund is Himax Technologies, Inc. (NASDAQ:HIMX). The company provides fabless semiconductor solutions dedicated to displaying image processing technologies to consumer electronic brands globally.
As of the second quarter of 2021, Yiheng Capital was the largest stakeholder in the company, with an investment of over $149.7 million. Overall, 16 hedge funds were long on the stock with a stake worth $301.4 million.
Himax Technologies, Inc. is focused on an environment-friendly policy for its products, ensuring quality with social responsibility. Himax recorded an EPS of $0.62 for Q2 2021, beating the analysts’ estimate by $0.12.
Recently, venture capital firm Vertical Group issued a Neutral rating to Himax Technologies, Inc.. The rating was issued by Jon Lopez, an analyst at Vertical Group.
NVIDIA Corporation (NASDAQ:NVDA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Zoom Video Communications, Inc. (NASDAQ:ZM) are some of the most famous stocks included in Louis Navellier’s portfolio.
7. The Container Store Group, Inc. (NYSE:TCS)
Navellier’s Stake Value: $1,873,000
Percentage of Navellier’s 13F Portfolio: 0.28 %
Number of Hedge Fund Holders: 21
Price as of October 20: $10.35
The Container Store Group, Inc. (NYSE:TCS) is a leading specialty retail company based in Texas, United States. Founded in 1978, the company offers storage, organization products, and custom closets.
Louis Navellier owns 143,625 shares worth over $1.87 million in The Container Store Group Inc. as of the second quarter of 2021. The company recorded an increase in hedge fund sentiment, with the total number of hedge fund positions going up to 21 in the second quarter in comparison to 18 in the preceding quarter.
6. Retractable Technologies, Inc. (NYSE:RVP)
Navellier’s Stake Value: $666,000
Percentage of Navellier’s 13F Portfolio: 0.1 %
Number of Hedge Fund Holders: 7
Price as of October 20: $9.56
Retractable Technologies, Inc. (NYSE:RVP) designs, manufactures, and markets world-class safety medical devices to the healthcare industry. The company’s vision is focused on providing products proven to effectively reduce the risk of needlestick contamination and infections. In the second quarter of 2021, Navellier owned 57,653 shares worth $666,000 in Retractable Technologies Inc..
In June, Retractable Technologies Inc. saw an over 10% increase in its stock price after the announcement of the company’s common stock repurchase plan of up to $10 million.
5. SunOpta Inc. (NASDAQ:STKL)
Navellier’s Stake Value: $456,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 26
Price as of October 20: $7.96
SunOpta Inc. (NASDAQ:STKL) is at the fifth position on our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund. Based in Mississauga, Canada, SunOpta Inc. is a leading multinational focused on specialty foods and sourcing organic ingredients.
In Q2 2021, SunOpta Inc. recorded an EPS of $0, which was in line with the analysts’ estimate. Recently, Cowen analyst Brian Holland started coverage of SunOpta Inc. with an Outperform rating and a price target of $15.
4. Sharps Compliance Corp. (NASDAQ:SMED)
Navellier’s Stake Value: $547,000
Percentage of Navellier’s 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 15
Price as of October 20: $8.04
Sharps Compliance Corp. (NASDAQ:SMED) is a hazardous waste treatment and disposal company. The Texas-based company provides full waste management services for medical, pharmaceutical, and hazardous junk of small and medium quantity generators. Sharps Compliance Corp.’s lead products include the Sharps Recovery System and MedSafe Medication Disposal System.
At investment advisory firm Barrington, an Outperform rating was maintained on Sharps Compliance Corp. stock, but the price target was lowered from $18 to $13 by analyst Kevin Steinke, owing to the drop in COVID-19 vaccinations.
3. Tencent Music Entertainment Group (NYSE:TME)
Navellier’s Stake Value: $434,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 35
Price as of October 20: $8.31
Tencent Music Entertainment Group (NYSE:TME) is a music streaming service developer targeting the Chinese market. Founded in July 2016, the China-based company is a leading online music, and audio entertainment platform with 800 million active users and 120 million paid subscribers. Tencent Music’s products include popular apps like QQ Music, Kugou, Kuwo, and WeSing.
Gil Simon’s SoMa Equity Partners was the largest stakeholder in Tencent Music Entertainment Group, with 12.5 million shares worth over $193 million as of the second quarter of 2021.
Investment management firm Nordstern Capital mentioned Tencent Music Entertainment Group in its Q2 2021 investor letter. Here’s what the firm said:
“While Alibaba prefers to acquire and centralize, Tencent’s general capital allocation strategy is to invest and decentralize. As with Alibaba, Tencent’s ecosystem is so vast that it deserves several books.
The sell-side consensus projects 20% revenue compound-annual-growth-rate (CAGR) over the next three years for the operating business. Considering today’s share price, Tencent would trade at 21-times earnings three years out. This does not sound demanding for a dominating super-app ecosystem. However, the even greater long-term superpower of Tencent might be found in its investment prowess.
Tencent made thousands of investments in other companies over the last two decades. Just in the first half of 2021, Tencent closed more than 50 deals on gaming investments alone20. While Alibaba occasionally exits holdings, as it did with Meituan or Didi, Tencent hardly ever sells or divests investments and, like Berkshire Hathaway, primarily keeps adding more…and more…and more…
Tencent’s portfolio of public company holdings end of June 2021 swelled to $238bn21, which is about 35% of Tencent’s total market cap. Reviewing Warren Buffett’s investment success over his lifetime and comparing it to Tencent’s growth in shareholdings of public companies gives some idea of where Tencent could go over time…
The investment superpower of Tencent is to make early-stage private investments. However, if one had invested whenever Tencent either IPO-ed a portfolio company or announced an investment into a public company, the compound annual return rate would be around 20%. The results are driven by the 15 best performers, which more than make up for the plenty of declining public companies Tencent also holds.”
2. CEMEX, S.A.B. de C.V. (NYSE:CX)
Navellier’s Stake Value: $429,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 23
Price as of October 20: $7.17
CEMEX, S.A.B. de C.V. (NYSE:CX), a Mexican building materials company, is at the second position in our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund.
CEMEX, S.A.B. de C.V. recorded YoY revenue growth of 13.03% and saw a rise of 59% in its stock price over the last year.
On October 11, CEMEX, S.A.B. de C.V. was upgraded to Buy from Neutral by analyst Andres Cardona at Citi. The price target was lowered from $9.80 to $9.30.
1. iClick Interactive Asia Group Limited (NASDAQ:ICLK)
Navellier’s Stake Value: $670,000
Percentage of Navellier’s 13F Portfolio: 0.1 %
Number of Hedge Fund Holders: 05
Price as of October 20: $7.14
iClick Interactive Asia Group Limited (NASDAQ:ICLK) secured the first position on our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund. Founded in 2009, the company functions as a marketing cloud platform with a global customer base. Based in Hong Kong, iClick provides a diverse range of services, including digital marketing, software development, and display solutions.
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This article is originally published at Insider Monkey.
