5 Ridiculously Cheap Stocks to Buy Now and Hold for the Long Term

4. Cenovus Energy Inc. (NYSE:CVE)

PE Ratio as of April 12: 13.28

Revenue Growth (5-year): 48.28%

Number of Hedge Fund Holders: 50

Cenovus Energy Inc. (NYSE:CVE) is engaged in the development, production, refinement, transportation, and marketing of crude oil, natural gas, and refined petroleum products. As of April 12, the stock has a PE ratio of 13.28.

Cenovus Energy Inc. (NYSE:CVE) was part of 50 hedge funds’ portfolios, and the total stake value was $1.558 billion in the fourth quarter of 2023. Millennium Management has increased its stake in the company by 55% to 16.518 million shares worth $275.159 million and is the largest shareholder, as of the fourth quarter of 2023.

Cenovus Energy Inc. (NYSE:CVE) has witnessed sales growth of 48.28% over the last five years. On April 9, RBC Capital analyst Greg Pardy raised the price target on the stock to C$32 from C$28 and maintained an Outperform rating on the shares.

L1 Capital made the following comment about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2023 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long +23%) shares rallied as WTI oil prices rose to ~US$91/bbl over the month, the highest level since November 2022. The company also had tailwinds from higher refinery margins, particularly in North America which remains their key exposure. Cenovus continues to generate strong free cash flow at current oil price levels, with the long-life nature of its oil sands assets and its low cost of production providing a break-even oil price at around ~US$40/bbl. We estimate the company can reach its net debt target in early CY24, enabling a step-up in shareholder returns through on-market share buybacks.”