In this article we discuss the 5 cheap stocks to buy now. If you want to read our detailed analysis of these cheap stocks, go directly to 10 Cheap Stocks To Buy Now.
5. BRF S.A. (NYSE: BRFS)
BRF is a Brazilian food company behind major brands including Sadia, Perdigão, Qualy, Paty, Dánica and Bocatti. The stock is up 62% over the last 12 months. In December, BRF shares soared after the company revealed its 10-year expansion plan, with operations set to launch in Turkey and Saudi Arabia, North America and various Asian countries.
A total of 11 hedge funds tracked by Insider Monkey were bullish BRFS at the end of the fourth quarter, up from 10 funds a quarter earlier.
4. DHT Holdings, Inc. (NYSE: DHT)
DHT ranks 4th on the list of 10 cheap stocks to buy now. The oil tanker company’s shares are up 13% over the last 12 months. The company has a dividend yield of over 3%. Earlier this year, the company bought two VLCCs built-in 2016 at DSME (Daewoo) for $136 million.
As of the end of the fourth quarter, there were 18 hedge funds in Insider Monkey’s database that held stakes in DHT, compared to 24 funds in the third quarter. Jim Simons’ Renaissance Technologies, with 6.02 million shares of DHT, is the biggest stakeholder in the company.
3. Owl Rock Capital Corporation (NYSE: ORCC)
Owl Rock provides lending services and is managed by Owl Rock Capital Advisors LLC. The company has about $27.1 billion worth of assets under management. The stock has gained 37% over the last 12 months. In February, RBC upgraded the stock to Outperform from Sector Perform. Janney’s analyst Michael Penn also upgraded the stock to Buy from Neutral and upped his price target to $15 from $13.
The company is also getting the attention of the smart money, as 20 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 15 funds a quarter earlier.
2. Qurate Retail, Inc. (NASDAQ: QRTEA)
Qurate Retail is a media company engaged in video and e-commerce industries. The company’s subsidiaries include QVC, Inc. Zulily and Home Shopping Network (HSN). In January, QVC launched YouTube TV streaming service. Through its 1313 broadcast networks, QVC reaches 380 million homes worldwide.
With a $172.99 million stake in QRTEA, FPR Partners owns 15.8 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 36 hedge funds held stakes in QRTEA as of the end of the fourth quarter, versus 41 funds in the third quarter.
Weitz Partners, in their Q3 2020 investor letter said that they added their position in Qurate Retail, Inc. (NASDAQ: QRTEA) because of the recent improvements in the company. Here is what Weitz Partners has to say about Qurate Retail, Inc. in their Investor Letter:
“The strongest quarterly performance came from Qurate Retail, a more modestly sized holding. Qurate’s home shopping offerings across pay-TV, dot-com and other digital channels were well suited for the current environment, driving a return to sales growth in the second quarter (the first in more than a year). Management also took steps to highlight the company’s resilient cash flow generation, paying a $1.50 cash dividend and distributing new 8% cumulative preferred securities to owners as part of a broader capital structure shuffle. We were encouraged by these announcements and bought additional shares of the common equity, which also allowed us to receive additional preferred shares. As trading in the preferred began, technical pressures led the shares to trade at a significant discount to par, giving us another opportunity to further build our position at attractive prices. In the days that followed, the pressure eased, and shares recovered to trade at a modest discount to par value.”
1. Kinross Gold Corporation (NYSE: KGC)
Number of Hedge Fund Holders: 36
PE Ratio: 6.66
Kinross Gold ranks 1st on the list of 10 cheap stocks to buy now. The company’s operations include exploring and mining gold, acquiring gold-bearing properties, and extracting gold ores. The company’s assets include Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Maricunga, Tasiast and Chirano. The company beat Q4 results amid a 25% surge in gold prices in the period. However, production fell 3.3% on a YoY basis.
As of the end of the fourth quarter of 2020, Jim Simons’ Renaissance Technologies owns 38.4 million shares of KGC worth $281.6 million. KGC accounts for 0.3% of Jim Simons’ total portfolio.
You can also take a peek at Tiger Cub Billionaire Stephen Mandel’s Top 10 Stock Picks and Billionaire John Paulson’s Top 10 Stock Picks.
