5 Best Stocks Under $50 According to Hedge Funds

In this article, we discuss 5 best stocks under $50 according to hedge funds. If you want to read about some more stocks that hedge funds like, go directly to 10 Best Stocks Under $50 According to Hedge Funds.

5. Tapestry, Inc. (NYSE:TPR)

Number of Hedge Fund Holders: 36

Share Price as of September 1: $34.73

Tapestry, Inc. (NYSE:TPR) provides luxury accessories and branded lifestyle products. On August 18, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.78, beating market estimates by $0.01. The revenue over the period was $1.6 billion, almost the same as the revenue over the same period last year and missing estimates by $20 million. The board of the firm also approved a 20% increase to the dividend, with a quarterly cash dividend of $0.30 per share. 

On August 22, Barclays analyst Adrienne Yih maintained an Overweight rating on Tapestry, Inc. (NYSE:TPR) stock and raised the price target to $43 from $39, appreciating the second quarter earnings beat of the firm. 

At the end of the second quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $535 million in Tapestry, Inc. (NYSE:TPR), compared to 39 in the preceding quarter worth $605 million. 

In its Q3 2021 investor letter, Ariel Investments highlighted a few stocks and Tapestry, Inc. (NYSE:TPR) was one of them. Here is what the fund said:

“Luxury accessory and lifestyle brand, Tapestry, Inc. (NYSE:TPR) was the top contributor to performance over the trailing one-year period. Revenue improvement across all three brands with a notable increase in consumer demand, particularly for the Coach business, triple-digit growth in e-commerce, and better than expected pricing, drove margins higher. Looking ahead, we expect Tapestry’s supply chain and SKU rationalization initiatives to continue to deliver margin expansion. Together, with early signs of improved receptivity for the Kate Spade brand, we believe a significant value creation opportunity lies ahead.”