5 Best Non-Tech Stocks To Buy Now

4. Berry Global Group, Inc. (NYSE: BERY)

Number of Hedge Fund Holders: 34
PE Ratio: 12.28

Berry Global is a Fortune 500 company that makes packaging solutions, including plastic packaging, non-woven specialty materials, specialty films, adhesives, nonwovens, drink cups, containers and bottles. The stock is up 95% over the last 12 months. The company recently priced the private placement of $775 million of additional 1.57% First Priority Senior Secured Notes due January 15, 2026, with an expiry date of March 4.

With a $367.5 million stake in Berry Global, Eminence Capital owns 6.5 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 34 hedge funds held stakes in BERY as of the end of the fourth quarter, versus 43 funds in the third quarter.

Rhizome Partners, in their Q4 2020 investor letter, said that Berry Global Group, Inc. (NYSE: BERY) has a potentially good investment upside. Here is what Rhizome Partners has to say about Berry Global Group, Inc. in their Q4 2020 investor letter:

“Berry Global is the “Rodney Dangerfield” of value investments. The company recently issued $750mm worth of 2026 debt at 1.57% and used the proceeds to pay down higher coupon debt. The spread between the debt and equity yield is about 10%. Something is mispriced. In 2020, Berry had generated “bond-like” cashflows and had paid down almost $1 billion of debt. The market simply yawned. We keep hearing that institutional investors will not touch Berry until it reduces leverage below 4x EBITDA. Perhaps Berry will work like Griffin in that once they reduce leverage below 4x and starts to show 4-6 quarters of 2% organic growth, the shares may move “violently” to the upside.”