5 Cheap Value Stocks to Buy According to Seth Klarman

In this article, we discuss the 5 cheap value stocks to buy according to Seth Klarman. If you want to read about some more stocks in the Klarman portfolio, go directly to 11 Cheap Value Stocks to Buy According to Seth Klarman. 

5. Qorvo, Inc. (NASDAQ:QRVO)

Number of Hedge Fund Holders: 35 

PE Ratio: 14.21

Share Price as of December 26: $90.50

Qorvo, Inc. (NASDAQ:QRVO) develops and commercializes technologies and products for wireless, wired, and power markets worldwide. On November 2, Qorvo Inc posted earnings for the second quarter of 2022, reporting earnings per share of $2.66, beating market estimates by $0.12. The revenue over the period was $1.16 billion, down 7.9% compared to the revenue over the same period last year and beating market estimates by $30 million. At the end of the third quarter, Seth Klarman’s Baupost Group owned 6.8 million shares worth $538 million in Qorvo, Inc. (NASDAQ:QRVO). 

On November 15, Credit Suisse analyst Chris Caso initiated coverage of Qorvo, Inc. (NASDAQ:QRVO) stock with an Outperform rating and $120 price target, noting that the company is cyclically dependent on the phone market while also expanding its diversification into higher-growth non-handset industries.

At the end of the third quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $950.4 million in Qorvo, Inc. (NASDAQ:QRVO), compared to 30 in the preceding quarter worth $1.2 billion.

In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Qorvo, Inc. (NASDAQ:QRVO) was one of them. Here is what the fund said:

“Qorvo, Inc. (NASDAQ:QRVO) is one of the two major providers of radio frequency RF systems which are critical components of mobile devices including smart phones and the Internet of Things (IoT). Two transitory concerns have recently affected the company’s stock price. First, supply chain issues continue to be a constraint. Second, Apple recently announced its decision to decrease production of its iPhone SE model. Neither of these issues threatens their long-term competitive position. Qorvo’s value is stable and despite the recent pressure on the stock price, we feel its long-term prospects are promising.”