In this article, we will discuss 5 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. If you want to read our detailed analysis of Gendell’s history, investment philosophy, and hedge fund performance, go directly to 11 Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management.
5. United States Steel Corporation (NYSE: X)
Gendell’s Stake Value: $25,170,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 2.23%
Number of Hedge Fund Holders: 39
United States Steel Corporation (NYSE: X) manufactures and trades tubular steel and flat-rolled products mainly in North America and Europe. The company was founded in 1901 and ranks fifth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Shares of United States Steel Corporation (NYSE: X) rallied 248.24% in the last 12 months, resulting in a $7.2 billion market capitalization.
On July 30, United States Steel Corporation (NYSE: X) posted earnings for the second quarter of 2021. It reported earnings per share of $3.37, beating the analysts’ expectations by $0.28. Revenue over the period was $5.03 billion, up 140.32% YoY, surpassing the predictions by $460.03 million. On July 1, Deutsche Bank analyst Sathish Kasinathan raised the price target on United States Steel Corporation (NYSE: X) to $38 from $30 and reiterated a “Buy” rating on the shares.
The hedge fund managed by Jeffrey Gendell owns 1.05 million shares in United States Steel Corporation (NYSE: X), worth $25.17 million, representing 2.23% of their portfolio. As of the second quarter of 2021, 39 hedge funds held a stake in United States Steel Corporation (NYSE: X) compared to 22 funds in the first quarter.
4. Citigroup Inc. (NYSE: C)
Gendell’s Stake Value: $25,597,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 2.26%
Number of Hedge Fund Holders: 87
Citigroup Inc. (NYSE: C) is a financial service firm that offers a wide range of economic goods and services to individuals, businesses, governments, and organizations. It was founded in 1812, and it stands fourth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. The company shares have offered investors more than 39.50% in returns over the course of the past 12 months.
On July 15, Piper Sandler analyst Jeffery Harte lowered the price target on Citigroup Inc. (NYSE: C) to $91 from $95 and kept an “Overweight” rating on the shares after the solid second-quarter results. While shares fell after management decided to spend higher for the year. Harte tells investors in a research note that the guidance is relatively consistent with management’s comments at an industry conference last month.
Jeffrey Gendell’s Tontine Asset Management increased its hold in Citigroup Inc. (NYSE: C) by 38% in the second quarter of 2021, ending the period with 361,792 shares of the company, worth $25.60 million. Citigroup Inc. (NYSE: C) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 87 in the second quarter compared to 90 positions in the previous quarter.
Artisan Partners Limited Partnership, in its fourth-quarter 2020 investor letter, mentioned Citigroup Inc. (NYSE: C). Here is what the fund said:
“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
3. Thor Industries, Inc. (NYSE: THO)
Gendell’s Stake Value: $46,844,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 4.15%
Number of Hedge Fund Holders: 26
Thor Industries, Inc. (NYSE: THO) develops, produces, and distributes recreational vehicles (RVs) and related components and accessories. The company was incorporated in 1980 and is placed third on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Shares of Thor Industries, Inc. (NYSE: THO) surged 16.66% in the past 12 months.
On July 1, Raymond James analyst Joseph Altobello initiated coverage on Thor Industries, Inc. (NYSE: THO) with an “Underperform” rating. The analyst feels Thor’s present valuation does not sufficiently compensate for risks, despite trading at a premium to competitor Winnebago (WGO). On June 18, Thor Industries, Inc. (NYSE: THO) declared a quarterly dividend of $0.41 per share, in line with the previous.
Tontine Asset Management holds 414,547 shares in Thor Industries, Inc. (NYSE: THO) worth $46.84 million, representing 4.15% of their portfolio. Thor Industries, Inc. (NYSE: THO) is the latest addition to Jeffrey Gendell’s portfolio. Harris Associates is a leading shareholder in Thor Industries, Inc. (NYSE: THO), with 1.93 million shares worth $217.78 million.
2. Cleveland-Cliffs Inc. (NYSE: CLF)
Gendell’s Stake Value: $144,001,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 12.76%
Number of Hedge Fund Holders: 44
Cleveland-Cliffs Inc. (NYSE: CLF) is a North American flat-rolled steel manufacturer. It was founded in 1847 and ranks second on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. Shares of Cleveland-Cliffs Inc. (NYSE: CLF) surged 276.54% over the last 12 months.
On August 11, Morgan Stanley analyst Carlos De Alba initiated coverage on Cleveland-Cliffs Inc. (NYSE: CLF) with an “Equal-Weight” rating and gave the price target of $26. On July 28, Cleveland-Cliffs Inc. (NYSE: CLF) announced earnings for the second quarter of 2021. It reported earnings per share of $1.43, missing the estimates by $0.08. The revenue over the period was $5.05 billion, up 361.70% YoY, beating the predictions by $92.84 million.
Tontine Asset Management holds 6.68 million shares in Cleveland-Cliffs Inc. (NYSE: CLF), worth over $144 million. This represents 12.76% of their portfolio. The hedge fund has increased its stake in the firm by 91% in the second quarter of 2021. Cleveland-Cliffs Inc. (NYSE: CLF) saw an increase in hedge fund sentiment recently. The number of hedge fund positions increased to 44 in the second quarter of 2021, compared to 36 positions in the previous quarter.
1. IES Holdings, Inc. (NASDAQ: IESC)
Gendell’s Stake Value: $586,585,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 51.97%
Number of Hedge Fund Holders: 13
IES Holdings, Inc. (NASDAQ: IESC) designs and installs integrated electrical and technology systems, as well as provides infrastructure products and services. The company was founded in 1997 and is placed first on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. IES Holdings, Inc. (NASDAQ: IESC) shares have offered 69.58% in returns to investors over the course of the past 12 months.
On August 5, IES Holdings, Inc. (NASDAQ: IESC) posted earnings for the third quarter of 2021. It reported revenue of $406 million, up 38.5% YoY. On June 11, IES Holdings, Inc. (NASDAQ: IESC) acquired the remaining 20% ownership interest in STR Mechanical, a North Carolina-based commercial and industrial mechanical services provider; the firm previously owned an 80% stake in STR.
Jeffrey Gendell’s Tontine Asset Management is IES Holdings, Inc. (NASDAQ: IESC)’s most significant stakeholder with 11.42 million shares, worth $586.59 million. There were 13 hedge funds in our database that held a stake in IES Holdings, Inc. (NASDAQ: IESC) in the second quarter of 2021, compared to 11 funds in the first quarter.
You can also take a peek at the 12 Best Value Dividend Stocks to Buy Now According to Warren Buffett and 10 Best Vaccine Stocks to Buy Now.
