Markets

Insider Trading

Hedge Funds

Retirement

Opinion

1281292 - 11759070 - 1

11 Best Cheap Stocks To Buy According To Billionaire Dalio

In this article, we discuss the 11 best cheap stocks to buy, according to billionaire Dalio. If you want to see more stocks in his portfolio, go to the 5 Best Cheap Stocks To Buy According To Billionaire Dalio.

In a LinkedIn post published on September 15, billionaire hedge fund manager Ray Dalio shared his outlook on the macroeconomic situation. Mr. Dalio thinks that the equity market will suffer a decline of 20% from current levels as the Federal Reserve will increase the benchmark interest rate towards 4.5% to control inflation that is presently hovering around a four-decade high.

The founder of Bridgewater Associates thinks that the increase in interest rate will bring down the growth of private sector credit, reducing private sector spending and contracting the economy.

While Mr. Dalio has a stake in popular big-cap companies like The Procter & Gamble Company (NYSE:PG), The Coca-Cola Company (NYSE:KO), and Alphabet Inc. (NASDAQ:GOOG) as of Q2, he also has some of the best cheap stocks in his portfolio that are expected to yield strong returns once the economy booms.

Ray Dalio of Bridgewater Associates

Our Methodology

We have picked these 11 cheap stocks from the second quarter portfolio of Ray Dalio’s Bridgewater Associates. We have shortlisted stocks that are trading below $15 per share as of September 28.

Best Cheap Stocks To Buy According To Billionaire Dalio

11. Southwestern Energy Company (NYSE:SWN)

Stock Price: $6.33

Ray Dalio’s Bridgewater Associates’ Holdings: $7.47 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.03%

Number of Hedge Fund Holders: 47

Southwestern Energy Company (NYSE:SWN) is a Texas-based corporation involved in the exploration and production (E&P) of natural gas.

In a research note issued on September 21, Paul Diamond at Citi increased the price target on Southwestern Energy Company (NYSE:SWN) from $8 to $10 and maintained a Buy rating on the stock. The analyst sees more clarity about the operational landscape of the industry in 2023 and anticipates strong operational performance in the coming quarters. Furthermore, Diamond believes that Southwestern Energy Company’s (NYSE:SWN) current pricing levels will sustain healthy free cash flow generation that would translate into capital gains. Experts think that Southwestern Energy Company (NYSE:SWN) has a prudent capital allocation strategy and a high level of financial flexibility. Bridgewater Associates re-initiated a position in Southwestern Energy Company (NYSE:SWN) during Q2 2022 with over 1.1 million shares, making it one of the best cheap stocks to buy according to Dalio.

Greenlight Capital discussed its outlook on Southwestern Energy Company (NYSE:SWN) in its Q1 2022 investor letter. Here’s what the firm said:

SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”

10. 360 DigiTech, Inc. (NASDAQ:QFIN)

Stock Price: $13.20

Ray Dalio’s Bridgewater Associates’ Holdings: $7.67 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.03%       

Number of Hedge Fund Holders: 7

360 DigiTech, Inc. (NASDAQ:QFIN) is a Shanghai, China-based fintech company.

The company is a provider of a digital line of credit for consumers that is often availed to supplement credit card debts. In 95% of the applications, the platform automatically makes the decision, and when a loan is approved, the borrower is given access to the funds within five minutes. Experts have a bullish take on 360 DigiTech, Inc. (NASDAQ:QFIN) stock as the stability of the regulatory environment of the Chinese fintech industry is increasing with every passing day. The market considers 360 DigiTech, Inc. (NASDAQ:QFIN) a leader in the fintech industry based on its competitive advantage in capital, financial licenses, and technology. Due to its strong positioning, the company is expected to observe an increase in its market share. 360 DigiTech, Inc.’s (NASDAQ:QFIN) bright long-term prospects have led hedge funds to consider it amongst the best cheap stocks to buy.

Tiger Pacific Capital was the leading hedge fund investor in 360 DigiTech, Inc. (NASDAQ:QFIN) during Q2 2022.

9. TAL Education Group (NYSE:TAL)

Stock Price: $4.95

Ray Dalio’s Bridgewater Associates’ Holdings: $8.39 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.04%

Number of Hedge Fund Holders: 17

TAL Education Group (NYSE:TAL) is a Beijing, China-based provider of smart learning solutions. The company is working on leveraging technology to enhance the educational experience of students belonging to diversified age groups in the K-12 segment.

The Chinese education segment has over 160 million students spread across 207,000 schools, reflecting a large addressable market for TAL Education Group (NYSE:TAL). The Chinese government is taking initiatives to support the education sector aggressively. Furthermore, the risk of TAL Education Group (NYSE:TAL) being delisted from the NYSE is almost out of the way now, with a deal between the US and Chinese authorities near completion. The deal will allow US accounting firms to review the records of Chinese entities listed on the NYSE in Hong Kong. The development was termed “a regulatory breakthrough” by Goldman Sachs.

TAL Education Group (NYSE:TAL) has rallied over 25% since the start of the year, in comparison to the  SPDR S&P 500 ETF Trust’s decline of 16% during the same period.

8. The Goodyear Tire & Rubber Company (NYSE:GT)

Stock Price: $11.15

Ray Dalio’s Bridgewater Associates’ Holdings: $9.04 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.04%

Number of Hedge Fund Holders: 30

The Goodyear Tire & Rubber Company (NYSE:GT) is an Akron, Ohio-based leading tire manufacturing company founded in 1898. The company has a presence in 23 countries through its 54 manufacturing facilities and a headcount of over 72,000 employees.

The Goodyear Tire & Rubber Company (NYSE:GT) is fundamentally strong and is well-positioned to benefit from an increase in EV investment. Investment levels in the EV sector are expected to reach an all-time high in 2022 and give a boost to the demand for The Goodyear Tire & Rubber Company’s (NYSE:GT) products.

Furthermore, with the acquisition of Cooper Tires, The Goodyear Tire & Rubber Company (NYSE:GT) owns a 25% market share of the replacement tire market now. Through this venture, The Goodyear Tire & Rubber Company (NYSE:GT) is aiming to capitalize on the increase in aging cars in the US. During these uncertain economic conditions, consumers are expected to prefer spending on their current vehicles instead of replacing them, playing in favor of The Goodyear Tire & Rubber Company (NYSE:GT). The company’s strong growth plans make it one of the best cheap stocks to buy.

7. SLM Corporation (NASDAQ:SLM)

Stock Price: $14.24

Ray Dalio’s Bridgewater Associates’ Holdings: $9.18 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.04%

Number of Hedge Fund Holders: 21

SLM Corporation (NASDAQ:SLM) is a Newark, Delaware-based provider and originator of US government-backed and private student loans. More popularly known as Sallie Mae, it is one of the cornerstones of the American financial system.

On September 28, David Chiaverini at Wedbush resumed coverage on SLM Corporation (NASDAQ:SLM) stock with an Outperform rating and a target price of $17. The target price reflects a potential upside of over 19% from the closing price as of September 28. The analyst highlighted the high market share of 56% for student loan originations as a key driver for a positive outlook on SLM Corporation (NASDAQ:SLM). Furthermore, the average FICO score for these loans stands at 750, which reflects the high quality of borrowers in the company’s loan portfolio.

Besides being one of the best cheap stocks in Dalio’s portfolio, 20 other hedge funds also held a stake in SLM Corporation (NASDAQ:SLM) as of Q2 2022.

6. WisdomTree Investments, Inc. (NASDAQ:WETF)

Stock Price: $4.87

Ray Dalio’s Bridgewater Associates’ Holdings: $11.16 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.05%

Number of Hedge Fund Holders: 18

WisdomTree Investments, Inc. (NASDAQ:WETF) is a New York-based sponsor of exchange-traded funds (ETFs), exchange-traded products (ETPs), and an asset manager.

WisdomTree Investments, Inc. (NASDAQ:WETF) has distinguished itself as a major ETF provider in the US after launching its first ETF in June 2006 with an asset under management (AUM) of over $70.5 billion. Given the downward bias for the broker and asset management segment due to the macroeconomic-related headwinds, experts believe that the current weakness provides an attractive long-term entry opportunity into WisdomTree Investments, Inc. (NASDAQ:WETF) stock.

WisdomTree Investments, Inc. (NASDAQ:WETF) has also undergone a transitioning process. The company has become the first leading firm to adopt blockchain-enabled technology to manage one of its funds either on the Ethereum or Stellar crypto network.

In addition to investing in some of the best cheap stocks like WisdomTree Investments, Inc. (NASDAQ:WETF), Dalio also has a stake in notable companies like The Procter & Gamble Company (NYSE:PG), The Coca-Cola Company (NYSE:KO), and Alphabet Inc. (NASDAQ:GOOG) as of Q2 2022.

Click to continue reading and see the 5 Best Cheap Stocks To Buy According To Billionaire Dalio.

Suggested Articles:

Disclose. None. 11 Best Cheap Stocks To Buy According To Billionaire Dalio is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s what to do next:

1. Subscribe to our Premium Readership Newsletter for just $9.99 a month. (33% Off – was $14.99).

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

 

Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

This offer vanishes in 7 days, so don’t miss your chance to lock in market beating returnsSign up NOW! The monthly newsletter comes with a 30-day, no-risk money-back guarantee. This offer is available to the first 1000 new investors who respond.

Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.