5 Best Bargain Stocks to Buy in August

In this article, we will be taking a look at the 5 best bargain stocks to buy in August. To read our detailed analysis of current market dynamics, you can go directly to see the 12 Best Bargain Stocks To Buy in August.

5. Interactive Brokers Group, Inc. (NASDAQ:IBKR)

Number of Hedge Fund Holders: 44

Upside Potential as of August 1: 17.34%

Average Price Target: $105

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an investment banking and brokerage company. It is based in Greenwich, Connecticut.

Benjamin Budish at Barclays holds an Overweight rating and a $106 price target on Interactive Brokers Group, Inc. (NASDAQ:IBKR) shares as of July 13.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) was seen in the portfolios of 44 hedge funds in the first quarter, with a total stake value of $2.2 billion.

Here’s what LVS Advisory said about Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its second-quarter 2023 investor letter:

“We also modestly added to our position in Interactive Brokers Group, Inc. (NASDAQ:IBKR) in the mid-$70s. We initiated our Interactive Brokers position last summer and published a write-up in September 2022. Interactive Brokers continues to trade at a discounted multiple as investors are skeptical that the company will continue to sustain the current level of net interest income beyond the near future. However, recent reports showing strength in the US economy and labor market suggest that interest rates won’t be cut in the near term. The company publishes monthly KPI metrics and investors appear to be ignoring recent strength in trading volume and margin loans. The current market environment of rising stock prices and elevated interest rates is a goldilocks environment for the company. With this last buy, we have now reached our limit of investing 10% of our portfolio at cost in the stock and can no longer increase the holding size.”

4. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 34

Upside Potential as of August 1: 18.66%

Average Price Target: $43.17

A Buy rating was maintained on shares of The Kraft Heinz Company (NASDAQ:KHC) by Jason English at Goldman Sachs on July 27, alongside a $41 price target.

The Kraft Heinz Company (NASDAQ:KHC) is a consumer staples company manufacturing food and beverage products. It is based in Pittsburgh, Pennsylvania.

There were 34 hedge funds long The Kraft Heinz Company (NASDAQ:KHC) in the first quarter, with a total stake value of $13.1 billion.

3. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 55

Upside Potential as of August 1: 19.07%

Average Price Target: $117

We saw 55 hedge funds long Philip Morris International Inc (NYSE:PM) in the first quarter. Their total stake value in the company was $5.9 billion.

Pamela Kaufman at Morgan Stanley holds an Overweight rating and a $118 price target on Philip Morris International Inc (NYSE:PM) shares as of June 27.

Philip Morris International Inc (NYSE:PM) is a tobacco company. It is based in Stamford, Connecticut.

Ariel Investments made the following comment about Philip Morris International Inc (NYSE:PM) in its first-quarter 2023 investor letter:

“Finally, tobacco maker, Philip Morris International Inc. (NYSE:PM) declined in the period on concerns related to supply-chain disruptions resulting from the war in Ukraine, which we view as temporary. We believe the favorable economics and margin expansion associated with market share gains from the IQOS brand and Reduced Risk Products should yield value creation opportunities in the years ahead. Furthermore, at current trading levels, we think the company’s operating leverage, pricing power, and free cash flow profile offer a margin of safety.”

2. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 60

Upside Potential as of August 1: 19.94%

Average Price Target: $91.14

Gilead Sciences, Inc. (NASDAQ:GILD) is a biotechnology company developing medicines in the areas of unmet medical needs. It is based in Foster City, California.

A total of 60 hedge funds were long Gilead Sciences, Inc. (NASDAQ:GILD) in the first quarter, with a total stake value of $3.9 billion.

Piper Sandler’s Joseph Catanzaro holds an Overweight rating and a $100 price target on Gilead Sciences, Inc. (NASDAQ:GILD) shares as of July 24.

1. MP Materials Corp. (NYSE:MP)

Number of Hedge Fund Holders: 35

Upside Potential as of August 1: 36.49%

Average Price Target: $30

MP Materials Corp. (NYSE:MP) was seen in the portfolios of 35 hedge funds in the first quarter. Their total stake value in the company was $1.4 billion.

MP Materials Corp. (NYSE:MP) is a diversified metals and mining company. It is based in Las Vegas, Nevada.

A Buy rating and a $39 price target were maintained on MP Materials Corp. (NYSE:MP) shares by Matt Summerville at DA Davidson on July 11.

Bernzott Capital Advisors said this about MP Materials Corp. (NYSE:MP) in its fourth-quarter 2022 investor letter:

“MP Materials Corp. (NYSE:MP): Despite another quarter in which this rare earth materials company beat quarterly top and bottom-line expectations, the stock underperformed. Negative headlines surrounding near term electric vehicle demand and fears surrounding Covid-19 and China likely led to the underperformance. With a fortress balance sheet, an irreplaceable asset base and strong FCF generation, we believe this company can navigate these short-term headwinds and continue its focus on becoming the only supplier of magnets in the United States.”

See also 12 Cheap Travel Stocks to Buy Now and 11 Cheap Transportation Stocks To Buy.