In this article, we will take a look at the 5 oversold blue chip stocks to buy right now. To read our analysis of the recent trends and market activity, you can go to the 11 Oversold Blue Chip Stocks to Buy Right Now.
5. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
14-day RSI: 32.01
Number of Hedge Fund Holders: 36
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian company and one of the largest oil and gas producers in the world, mainly dedicated to exploration and production, refining, energy generation and marketing.
On March 7, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) released its financial results for Q4 2023. Its revenue declined by 10% y-o-y to $27.1 billion, while net income shrunk 24% y-o-y to $6.3 billion.
According to the Insider Monkey data on 933 leading hedge funds, 36 hedge funds were long Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) shares as of Q4 2023, with the total shares held by hedge funds valued at $5.6 billion. Rajiv Jain’s GQG Partners was the lead hedge fund shareholder with ownership of 213.2 million shares valued at $3.4 billion.
4. Tesla, Inc. (NASDAQ:TSLA)
14-day RSI: 31.26
Number of Hedge Fund Holders: 82
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y, Model X SUVs, and Cybertruck, while upcoming products include Tesla Roadster and Tesla Semi – a light commercial vehicle.
On January 24, Tesla, Inc. (NASDAQ:TSLA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $24.3 billion, while net income surged by 115% y-o-y to $3.7 billion. Its normalized EPS of $0.71 missed consensus estimates by $0.03.
Tesla, Inc. (NASDAQ:TSLA) ranks highest on our list of 11 oversold blue chip stocks to buy right now based on the value of shares held by hedge funds. As of Q4 2023, 82 hedge funds owned shares worth $6.3 billion. In its Q4 2023 investor letter, Tsai Capital Corporation, an investment management firm, made the following comments about Tesla, Inc. (NASDAQ:TSLA):
“Tesla has significant and underappreciated competitive advantages across multiple verticals including electric vehicles, software and energy storage. Misunderstood by much of Wall Street – and consequently a favorite of short sellers – Tesla continues to grow rapidly and increase its lead over the competition while delighting consumers in the process. [. . .] While we expect competition for EVs to intensify and for Tesla to lose market share over time, we also believe the company will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030 and further its lead in autonomous driving capability. In fact, we expect Tesla will eventually license its autonomous driving software, creating high-margin (70-80%), recurring licensing revenue. Tesla is also one of only two companies that dominate the energy storage market, which has the potential to grow to several hundred billion in revenue as power plants around the world increase their focus on renewable energy.”
3. Vale S.A. (NYSE:VALE)
14-day RSI: 30.96
Number of Hedge Fund Holders: 34
Rio de Janeiro, Brazil-based Vale S.A. (NYSE:VALE) is a global mining company producing iron ore, pellets, and nickel. In addition to mining, it has operations in logistics, energy, and steelmaking.
On February 22, Vale S.A. (NYSE:VALE) released its financial results for Q4 2023. Its net operating revenue increased by 9% y-o-y to $13.1 billion, while net income declined by 35% y-o-y to $2.4 billion. Its normalized EPS of $0.67 missed consensus by $0.26.
On March 8, RBC Capital analyst Marina Calero lowered the price target for Vale S.A. (NYSE:VALE) shares from $19 to $18.5 and maintained an ‘Outperform’ rating for its shares. The target price represents a potential upside of 50.65% based on the latest share price.
2. Snowflake Inc. (NYSE:SNOW)
14-day RSI: 27.65
Number of Hedge Fund Holders: 86
Snowflake Inc. (NYSE:SNOW) is a leading cloud platform provider allowing customers to use its Data Cloud platform to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Customers use its platform to execute workloads including applications, collaboration, cybersecurity, data engineering, data lake, data science, data warehousing, and unistore.
On February 28, Snowflake Inc. (NYSE:SNOW) released its financial results for the quarter ended January 31, 2023. Its revenue went up by 32% year-on-year to $775 million while its net loss went down by 18% year-on-year to $170 million.
Following the earnings release, JPM Securities analyst Joe Goodwin raised the price target for Snowflake Inc. (NYSE:SNOW) shares to $235 from $212 and maintained a ‘Market Outperform’ rating for its shares.
Snowflake Inc. (NYSE:SNOW) has been a consistent component of hedge fund portfolios since its IPO. As of Q4 2023, its shares were held by 86 of the 933 hedge funds tracked by Insider Monkey. Brad Gerstner’s Altimeter Capital Management was the largest shareholder on record with ownership of 12.4 million shares valued at $2.5 billion.
1. The Boeing Company (NYSE:BA)
14-day RSI: 24.82
Number of Hedge Fund Holders: 69
Founded in 1916, The Boeing Company (NYSE:BA) is one of the world’s largest aerospace companies and a leading provider of commercial airplanes, defense, space and security systems, and global services.
On January 31, The Boeing Company (NYSE:BA) released its financial results for Q4 2023. Its revenue increased by 10% y-o-y to $22 billion while net loss shrunk by 95% y-o-y to $30 million. Its normalized EPS of -$0.47 surpassed consensus estimates by $0.32.
Following the earnings release, RBC Capital lowered the price target for The Boeing Company (NYSE:BA) shares to $260 from $285 and maintained an ‘Outperform’ rating for its shares.
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