In this article, we will look at 5 cheap global stocks to buy now. If you want to explore similar stocks, you can go to 12 Cheap Global Stocks to Buy.
5. Cenovus Energy Inc. (NYSE:CVE)
PE Ratio (TTM) as of March 30: 7.35
Number of Hedge Fund Holders: 46
Cenovus Energy Inc. (NYSE:CVE) is placed fifth among the best cheap global stocks to buy now. As of March 30, the stock has returned 5.42% to investors over the past 6 months and is trading at a PE multiple of 7x.
On March 27, Morgan Stanley updated its price target on Cenovus Energy Inc. (NYSE:CVE) to C$32 from C$33 and maintained an Overweight rating on the shares.
At the close of the fourth quarter of 2022, 46 hedge funds were long Cenovus Energy Inc. (NYSE:CVE) and disclosed stakes worth $2.31 billion in the company. Of those, Soroban Capital Partners was the top shareholder in TransDigm Group Incorporated (NYSE:TDG) and held a position worth $1 billion.
Here is what L1 Capital had to say about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2022 investor letter:
“Cenovus Energy (Long -13%) shares declined over the quarter due to an ~18% decline in oil prices on increasing fears of a U.S recession and a slowdown in global growth. Given the long-life nature of its oil sand assets and its low cost of production, we estimate Cenovus is free cash flow break-even at an oil price of ~US$40/bbl. Despite the recent fall, oil prices remain more than double this break-even point, implying considerable free cash flow generation potential for the company at current levels, with Cenovus currently trading on a consensus FY22 free cash flow yield of around 20%. There are also additional value realisation catalysts with the company continuing to progress the de-gearing of its balance sheet via organic cash generation and asset sales.”
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4. Suncor Energy Inc. (NYSE:SU)
PE Ratio (TTM) as of March 30: 6.44
Number of Hedge Fund Holders: 47
On February 14, Suncor Energy Inc. (NYSE:SU) announced earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $1.36 and beat EPS expectations by $0.03. The stock is one of the best cheap global stocks to buy now. As of March 30, Suncor Energy Inc. (NYSE:SU) is trading at a PE multiple of 6x.
This March, Morgan Stanley analyst Devin McDermott revised his price target on Suncor Energy Inc. (NYSE:SU) to C$58 from C$61 and reiterated an Overweight rating on the shares.
Suncor Energy Inc. (NYSE:SU) was held by 47 hedge funds at the end of Q4 2022. These funds disclosed collective stakes worth $2.46 billion in the company, up from $2.01 billion in the previous quarter when 45 hedge funds held stakes in the company. The hedge fund sentiment for the stock is positive.
As of December 31, Elliott Management is the top shareholder in Suncor Energy Inc. (NYSE:SU) and has a stake worth $317.3 million.
Artisan Partners made the following comment about Suncor Energy Inc. (NYSE:SU) in its Q4 2022 investor letter:
“Suncor Energy Inc. (NYSE:SU), a Canada-based operator of oil sands mines, refineries and retail gas stations, was the third-largest contributor to return for the year, mainly due to higher oil prices. The share price increased by one third. Notably, the portfolio generated significant returns from energy stocks, including Suncor, Tenaris, Imperial Oil and tangentially Alimentation Couche-Tarde and Seven & i Holdings, both of which are in the gas station business. Given the cyclicality and commodity nature of the oil business, we have sold shares of these investments, including the complete sale of both Tenaris and Imperial Oil.”
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3. General Motors Company (NYSE:GM)
PE Ratio (TTM) as of March 30: 5.86
Number of Hedge Fund Holders: 80
At the end of Q4 2022, General Motors Company (NYSE:GM) was spotted on 80 hedge funds’ portfolios. The total stakes of these hedge funds amounted to $3.46 billion in the company.
On March 27, Citi analyst Itay Michaeli reiterated a Buy rating on General Motors Company (NYSE:GM) and revised his price target on the stock to $76 from $82.
General Motors Company (NYSE:GM) has gained 9.36% over the past 6 months, as of March 30, and has a TTM PE ratio of 5.86. The stock is placed third among the best cheap global stocks to buy now.
As of December 31, Berkshire Hathaway is the most prominent shareholder in General Motors Company (NYSE:GM) and has disclosed stakes worth $1.68 billion.
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2. QUALCOMM, Incorporated (NASDAQ:QCOM)
PE Ratio (TTM) as of March 30: 11.98
Number of Hedge Fund Holders: 82
On February 2, QUALCOMM, Incorporated (NASDAQ:QCOM) posted market-beating earnings for the first quarter of fiscal 2023. The company reported an EPS of $2.37 and outperformed EPS estimates by $0.02. QUALCOMM, Incorporated (NASDAQ:QCOM) has returned 8.46% to investors over the past 6 months, as of March 30, and has a TTM PE ratio of 11.98. The stock is one of the best cheap global stocks to buy now according to hedge funds.
On February 5, Citi maintained a Neutral rating on QUALCOMM, Incorporated (NASDAQ:QCOM) and raised its price target on the stock to $132 from $105.
82 hedge funds held stakes in QUALCOMM, Incorporated (NASDAQ:QCOM) at the end of Q4 2022. The total value of these stakes amounted to $2.39 billion.
As of December 31, Matrix Capital Management is the most prominent shareholder in QUALCOMM, Incorporated (NASDAQ:QCOM) and has a stake worth $366.9 million.
Here is what Madison Funds had to say about QUALCOMM Incorporated (NASDAQ:QCOM) in its fourth-quarter 2022 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM) continues to be challenged by headwinds in the smartphone supply chain with an expected decline in units for 2022. Despite solid gains in the Internet of Things and Auto segments, Qualcomm’s dominant business remains the smartphone market. We expect to see stabilization of the smartphone market in 2023, including a recovery in China.”
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1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
PE Ratio (TTM) as of March 30: 14.36
Number of Hedge Fund Holders: 86
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was spotted on 86 investors’ portfolios at the end of the fourth quarter of 2022. These funds held collective stakes of $10.2 billion in the company.
On March 29, KGI Securities reinstated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with an Outperform rating and a NT$603 price target. As of March 30, the stock has returned 33.40% to investors over the past 6 months and is trading at a PE multiple of 14x. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is placed high on our list of the best cheap global stocks to buy now.
As of December 31, Lone Pine Capital is the largest investor in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and has a stake worth $774 million.
Here is what Baron Funds had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third-quarter 2022 investor letter:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”
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