In this article, we will take a look at the 15 best low-priced stocks to buy now.
2023 is turning out to be another surprising year for investors as they see no end in sight to their woes amid an economy that remains overheated on the back of strong employment, rising inflation and increased spending. Optimists who were forecasting a pause in rate hikes in 2023 and a normalization in inflation have been proven wrong. For example, a 2023 outlook report by JPMorgan had said that it was expecting inflation levels to show normalization in 2023. The firm was also expecting a pause in central banks’ rate hikes. However, so far it has not been the case. However, JPMorgan said was right on one account: it foresaw a temporary rally in the market when it said:
“While risks around the international growth outlook are high for 2023, they are also much better reflected in equity valuations (and currencies) – and “less bad” news can be enough to fuel a powerful rebound once the worst is priced into earnings expectations.”
That’s exactly what happened in the start of this year as markets began to rally and the Federal Reserve’s chair Jerome Powell announced that the disinflationary process had started. While that optimism stands tarnished, now might be the right time to pile into low priced, undervalued stocks that could grow in the long term.
For this article, we used the Finviz stock screener to initially screen stocks trading under $20 as of March 10 with PE ratios (current or forward) under 25. This gave us a long list of low-priced stocks that are not overvalued. We then picked 15 of these stocks with highest number of hedge fund investors. We gauged hedge fund sentiment by using stock holdings data of 943 hedge funds tracked by Insider Monkey. The idea was to find the best low-priced stock to buy according to the smart money.
Image by Gerd Altmann from Pixabay
Best Low-Priced Stocks To Buy Now
15. Orange S.A. (NYSE:ORAN)
Number of Hedge Fund Holders: 6
French telecom company Orange S.A. (NYSE:ORAN) is a low-priced stock with a high dividend yield. Orange S.A. (NYSE:ORAN) has a strong market position in France. Orange S.A. (NYSE:ORAN) has been deploying fiber network in major cities to tackle the rising competition in the local market.
6 hedge funds tracked by Insider Monkey had stakes in Orange S.A. (NYSE:ORAN) at the end of the fourth quarter of 2022. The biggest hedge fund stakeholder of Orange S.A. (NYSE:ORAN) was Dmitry Balyasny’s Balyasny Asset Management which owns a stake worth over $1 million in the company.
14. Plains All American Pipeline, L.P. (NYSE:PAA)
Number of Hedge Fund Holders: 8
A total of 8 hedge funds tracked by Insider Monkey reported having stakes in Plains All American Pipeline, L.P. (NYSE:PAA). The biggest stakeholder of Plains All American Pipeline, L.P. (NYSE:PAA) was Henry Breck’s Heronetta Management with a $595 million stake in the company. While Plains All American Pipeline, L.P. (NYSE:PAA) missed analyst estimates for EPS and revenue for Q4, for 2023, it forecasts EBITDA at the high end of $2.55 billion with FCF of $1.60 billion.
13. Wipro Limited (NYSE:WIT)
Number of Hedge Fund Holders: 13
Indian technology giant Wipro Limited (NYSE:WIT) ranks 13th in our list of the best low-priced stocks to buy now. In January, Wipro Limited (NYSE:WIT) posted results for fiscal third quarter. GAAP EPS in the period reached $0.07, meeting analyst estimates. Revenue in the quarter jumped 4.1% on a YoY basis to reach $2.81 billion but missed estimates by $30 million. IT services revenue saw an increase of 10.4% year over year.
12. Barclays PLC (NYSE:BCS)
Number of Hedge Fund Holders: 14
While Barclays PLC (NYSE:BCS) has been falling after announcing its Q4 results, the stock could be a decent long-term pick. Barclays PLC (NYSE:BCS)’s profit before tax fell about 8% on a YoY basis in the fourth quarter. Barclays PLC (NYSE:BCS) said that the macroeconomic conditions were to blame for the results.
Barclays PLC (NYSE:BCS) said that based on the current macroeconomic outlook, it expects a loan loss ratio of 50-60 basis points in 2023, vs. 30bps reported in 2022.
Out of the 943 hedge funds tracked by Insider Monkey, 14 hedge funds reported having stakes in Barclays PLC (NYSE:BCS) at the end fourth quarter of 2022. The biggest stakeholder of Barclays PLC (NYSE:BCS) among these hedge funds was Mike Masters’ Masters Capital Management which owns a $23.4 million stake in the company.
11. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Number of Hedge Fund Holders: 15
Deutsche Bank Aktiengesellschaft (NYSE:DB) ranks 11th in our list of the best low-priced stocks to buy now. Insider Monkey’s proprietary database of 943 hedge funds shows that 15 hedge funds had stakes in Deutsche Bank Aktiengesellschaft (NYSE:DB) at the end of the fourth quarter of 2022. Deutsche Bank Aktiengesellschaft (NYSE:DB) is facing headwinds in global markets amid the current macroeconomic conditions. But Deutsche Bank Aktiengesellschaft (NYSE:DB) could be a decent pick for the long term.
Recently, Bloomberg reported that Deutsche Bank Aktiengesellschaft’s (NYSE:DB) asset management unit, DWS Group, was planning to buy monitory stakes in two crypto companies: Deutsche Digital Holdings and Tradias.
10. Ambev S.A. (NYSE:ABEV)
Number of Hedge Fund Holders: 16
Brazil-based beverage company Ambev S.A. (NYSE:ABEV) ranks 10th in our list of the best low-priced stocks to buy now.
At the end of the last quarter of 2022, 16 hedge funds reported owning stakes in Ambev S.A. (NYSE:ABEV). The total value of these stakes was about $244 million. The biggest hedge fund stakeholder of Ambev S.A. (NYSE:ABEV) was Jean-Marie Eveillard’s First Eagle Investment Management which had a $777 million stake in the company.
Earlier in March, Ambev S.A. (NYSE:ABEV) posted its Q4 results. Adjusted EPS in the quarter came in at R$0.33. Revenue in the quarter increased by about 3.1% on a YoY basis to reach R$22.69 billion.
For 2023, Ambev S.A. (NYSE:ABEV) expects its revenue growth to be “more driven by net revenue per hectoliter performance than volumes.”
9. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 17
Nokia Oyj (NYSE:NOK) has been showing strong performance lately. It is one of the best low-priced stocks for the long term. Recently, Nokia Oyj (NYSE:NOK) posted its Q4 results. Adjusted EPS in the quarter came in at Є0.16, beating estimates by Є0.03. Revenue in the quarter jumped about 12.2% on a YoY basis to total Є7.45 billion.
In February, Nokia Oyj (NYSE:NOK) won a ten-year extension to its existing nationwide 5G network deal with Antina Pte. Ltd., which is a JV formed by M1 and StarHub in Singapore.
A total of 17 hedge funds tracked by Insider Monkey entered 2023 with stakes in Nokia Oyj (NYSE:NOK).
8. United Microelectronics Corporation (NYSE:UMC)
Number of Hedge Fund Holders: 18
United Microelectronics Corporation (NYSE:UMC) is a Taiwanese semiconductor company.
As of the end of the fourth quarter of 2022, 18 hedge funds tracked by Insider Monkey reported owning stakes in United Microelectronics Corporation (NYSE:UMC). The total value of these stakes was about $214 million. The most notable stakeholder of United Microelectronics Corporation (NYSE:UMC) was D. E. Shaw, with a $22.2 million stake.
During the fourth quarter, United Microelectronics Corporation (NYSE:UMC)’s operating revenue increased by about 14.8% on a YoY basis to reach $2.21 billion. Earnings per ADS jumped by about 18.4% on a YoY basis to total $0.251.
7. Vodafone Group Public Limited Company (NASDAQ:VOD)
Number of Hedge Fund Holders: 20
A total of 20 hedge funds tracked by Insider Monkey reported owning stakes in Vodafone Group Public Limited Company (NASDAQ:VOD) as of the end of the fourth quarter of 2022. The total value of these stakes was about $336 million. The most significant stakeholder of Vodafone Group Public Limited Company (NASDAQ:VOD) was D. E. Shaw, which a $19.3 million stake in the company.
In January, BofA upgraded Vodafone Group Public Limited Company (NASDAQ:VOD) stock to Buy. The firm said that it sees Vodafone Group Public Limited Company (NASDAQ:VOD) “bottoming out” with room for an upside. BofA said that it is hopeful on Vodafone Group Public Limited Company (NASDAQ:VOD) because of a change in management that could “expedite a strategy to reallocate capital.”
In February, it was reported that Liberty Global (NASDAQ:LBTYA) has bought a 4.92% stake in Vodafone Group Public Limited Company (NASDAQ:VOD).
6. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Number of Hedge Fund Holders: 21
Swedish telecom giant Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) ranks 6th in our list of the best low-priced stocks to buy now. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is apparently bracing for a global economic slowdown as recently it announced to lay off 8,500 employees globally, according to Reuters. This comes after Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)’s plan to cut about 1,400 jobs in Sweden.
At the end of the fourth quarter of 2022, 21 hedge funds reported having stakes in Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), up from 17 hedge funds in the previous quarter. This shows that hedge fund sentiment on Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) is positive.
5. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 24
Headquartered in Australia, Amcor (NYSE:AMCR) is a global packing company. In February, Amcor (NYSE:AMCR) declared a quarterly dividend of $0.1225 per share, in line with the previous dividend. Forward dividend yield at the time came in at 4.32%. The dividend is payable on March 21 to shareholders of record as of March 1.
During the six months ending December 31, 2022, Amcor (NYSE:AMCR)’s adjusted EPS came in at $0.37 beating estimates by $0.01. Revenue in the period jumped about 6% on a YoY basis to reach $7.35 billion.
At the end of the fourth quarter of 2022, 24 hedge funds tracked by Insider Monkey had stakes in Amcor (NYSE:AMCR). The total worth of these stakes was $258 million.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 32
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the notable low-priced stocks to buy now.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) recently approved a whopping 35.8 billion reais in dividends for the fourth quarter.
However, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) fell after the company said it plans to allocate 6.5 billoin reais of the dividends in a reserve, which could result in a dividend cut.
As of the end of the fourth quarter of 2022, 32 hedge funds tracked by Insider Monkey reported owning stakes in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR). The total value of these stakes was about $3.8 billion. The biggest stakeholder of Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) was Rajiv Jain’s GQG Partners which owns a whopping $2.2 billion stake in the company.
3. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 38
Energy Transfer LP (NYSE:ET) is one of the best low-priced stocks with a high dividend yield. Its attractive dividends have caused investors to flock to its shares over the past few months amid recession fears. Energy Transfer LP (NYSE:ET) has gained about 25% over the past 12 months.
At the end of the fourth quarter of 2022, 38 hedge funds out of the 943 funds tracked by Insider Monkey reported having stakes in Energy Transfer LP (NYSE:ET), up from 33 hedge funds in the previous quarter. The net worth of these stakes was $613 million. The biggest hedge fund stakeholder of Energy Transfer LP (NYSE:ET) is David Abrams’ Abrams Capital Management which has a $212 million stake in the company.
2. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 40
Barrick Gold Corporation (NYSE:GOLD) is one of the notable gold stocks investors have been buying amid the market turmoil that started in 2022. Recently Barrick Gold Corporation (NYSE:GOLD) declared a quarterly dividend of $0.10 per share. However, it was a decrease of about 33% from the previous dividend. Barrick Gold Corporation (NYSE:GOLD)’s board also approved a new program for the repurchase of up to $1.0 billion of the company shares over the next 12 months.
At the end of the fourth quarter of 2022, 40 hedge funds tracked by Insider Monkey reported owning stakes in Barrick Gold Corporation (NYSE:GOLD). The net worth of these stakes was $721 million.
Old West Management made the following comment about Barrick Gold Corporation (NYSE:GOLD) in its Q4 2022 investor letter:
“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.
Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA”
1. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 47
Generic and specialty pharmaceuticals company Viatris Inc. (NASDAQ:VTRS) became net-income positive in the fourth quarter of 2022 as it posted a net income (GAAP) of $1 billion for the period, compared to a net loss of $263.8 million posted in the same period last year.
As of the end of the fourth quarter of 2022, 47 hedge funds tracked by Insider Monkey had stakes in Viatris Inc. (NASDAQ:VTRS).
Miller Value Partners made the following comment about Viatris Inc. (NASDAQ:VTRS) in its Q4 2022 investor letter:
“Viatris Inc. (NASDAQ:VTRS) gained after reporting 3Q22 net sales of $4.07B, -10.0% Y/Y (-1% operationally), below consensus of $4.14B, and Adjusted EBITDA of $1.50B (36.8% margin), ahead of consensus of $1.44B. Free cash flow (FCF) for the quarter came in at $765.1MM, which brings trailing twelve-month (TTM) FCF to $2.88B, or a FCF yield of 22.9%. Viatris paid down ~$614MM of debt in the quarter, bringing YTD debt reduction to ~$2.1B, in-line with the company’s previously stated target of reducing debt by ~$6.5B between 2021-2023. Additionally, the company announced the acquisitions of two Ophthalmology (eyecare) companies, Oyster Point Pharma and Famy Life Sciences, for an aggregate purchase price of ~$700-750MM, with management expecting these transactions to add at least $1B in sales and $500MM in Adjusted EBITDA to Viatris by 2028.”
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Disclosure: None. 15 Best Low-Priced Stocks To Buy Now is originally published on Insider Monkey.
