5 Best Cheap Stocks To Buy According To Billionaire Dalio

2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Stock Price: $11.79

Ray Dalio’s Bridgewater Associates’ Holdings: $29.71 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.13%

Number of Hedge Fund Holders: 68

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a New York-based mass entertainment and media conglomerate.

Warner Bros. Discovery, Inc.’s (NASDAQ:WBD) HBO Max finished the most recent quarter with a subscriber base of 92.1 million users. The leading streaming platform currently has a presence in 61 countries and intends to enter 190 countries by 2026. This would mean that the company would see its subscribers grow significantly in the future.

Experts believe that Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock is trading at a very cheap valuation as compared to the multiples of Netflix, Inc. (NASDAQ:NFLX) and the Walt Disney Company (NYSE:DIS). Warner Bros. Discovery, Inc.’s (NASDAQ:WBD) valuation is expected to double in the next 12 months from current levels. The growth outlook merits the inclusion of Warner Bros. Discovery, Inc. (NASDAQ:WBD) as one of the best cheap stocks in Dalio’s portfolio.

Here’s what Distillate Capital Partners LLC said about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q2 2022 investor letter:

Warner Bros. Discovery was the next largest position added to the portfolio and came after a nearly-50% price decline in the quarter. Consequently, the stock offers a mid-teens free cash flow yield and is expected to earn nearly half of its enterprise value in free cash over the next three years.”