5 Stocks to Buy on Sale and Never Look Back

In this article, we will be taking a look at the 5 stocks to buy on sale and never look back. To skip our detailed analysis of these stocks and current market trends, you can go directly to see the 10 Stocks to Buy on Sale and Never Look Back.

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99

Share Price as of November 4: $35.89

Bank of America Corporation (NYSE:BAC) is a diversified banking company based in Charlotte, North California. The company offers banking and financial products for individual consumers, institutional investors, and large corporations, among others.

James Fotheringham, an analyst at BMO Capital, raised his price target on shares of Bank of America Corporation (NYSE:BAC)  on October 18 from $41 to $42. The analyst also reiterated a Market Perform rating on the stock.

General economic pessimism in the market has resulted in Bank of America Corporation (NYSE:BAC) falling behind its highs by 28% as of November 3. However, the company stands to gain tremendously because of rising interest rates. It estimates that for every 100 basis point shift in the yield curve, it will bring in $4.2 billion of annual net interest income. Now it the perfect time to buy the stock, to benefit from its enormous profitability in the future.

Bank of America Corporation (NYSE:BAC) was found among the 13F holdings of 99 hedge funds in the second quarter. Their total stake value was $35.9 billion.

4. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 109

Share Price as of November 4: $98.90

The Walt Disney Company (NYSE:DIS) is a movies and entertainment company. It operates through the Disney Media and Entertainment Distribution, and Disney Parks, Experiences and Products segments.

KeyBanc’s Brandon Nispel holds an Overweight rating on shares of The Walt Disney Company (NYSE:DIS) as of October 26. The analyst also placed a $143 price target on the stock.

The Walt Disney Company (NYSE:DIS) had a potential upside of 34% from a discounted cash flow analysis. The company also has a 70% win rate over fourth-quarter earnings. With the company’s strong fundamentals and significant upside potential, now is the best time to buy it on sale.

There were 109 hedge funds long The Walt Disney Company (NYSE:DIS) in the second quarter, and 113 hedge funds long the stock in the previous quarter. Their total stake values were $3.2 billion and $5.2 billion, respectively.

Third Point, a New York-based investment advisor, mentioned The Walt Disney Company (NYSE:DIS) in its third-quarter 2022 investor letter. Here’s what the firm said:

“As disclosed in our Q2 letter, we reinitiated a significant position in The Walt Disney Company (NYSE:DIS) when the company retested its Covid lows earlier this year. At the current price, Disney is trading for little more than the stand-alone value of its Parks business and a mere 15x ’24 “street” consensus. The company remains early in its Direct to Consumer (“DTC”) transition with a leading market position, and yet the current stock price ascribes negligible value to the streaming business. We believe this is due to questions around the terminal economics of streaming, given large losses being generated today at Disney (>$1 billion dollars last quarter) and stagnating margins at peers such as Netflix. On the last earnings call, management highlighted three items that could lead to an inflection in DTC profitability over the next 12 months: a 38% price increase for Disney+ in the US; moderating growth in cash content expense; and an advertising tier for Disney+ launching in two months that can drive additional ARPU given high demand for the Disney brand amongst advertisers.

While the company has guided to Disney+ achieving breakeven sometime within the fiscal year ending September 2024, the valuation suggests the market remains skeptical. Disney only trades at ~14x the $7 in earnings generated prior to the Fox acquisition, which implies investors don’t expect earnings to meaningfully exceed this figure in the coming years. Hence, the first value driver we highlighted in our last letter is the opportunity for management to optimize Disney’s cost base to drive earnings growth. We believe Disney has ample means to rationalize costs across its operating platform and deliver targeted content for home viewing that does not entail the same cost structure of exclusive theatrical releases…” (Click here to view the full text)

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Share Price as of November 4: $135.11

Apple Inc. (NASDAQ:AAPL) is an information technology giant. The company is the renowned producer of the iPhone and MacBook products.

Wamsi Mohan holds a Neutral rating on shares of Apple Inc. (NASDAQ:AAPL) as of November 1, alongside a $160 price target.

In the fourth quarter of 2022, Apple Inc. (NASDAQ:AAPL) increased its revenue by 8%, compared to the same period a year ago. Over the last 12 months, the company has been up 2.08% as of October 31. In comparison, the S&P 500 is down 15.13%, making now a good time to buy the stock before it grows further.

Apple Inc. (NASDAQ:AAPL) had 128 funds long its stock in the second quarter, with a total stake value of $1.4 billion.

2. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 153

Share Price as of November 4: $85.08

Alphabet Inc. (NASDAQ:GOOG) is another tech giant on our list, operating as a communication services company. It is based in Mountain View, California.

Mark Mahaney at Evercore ISI holds an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) shares as of October 26. The analyst also holds a $130 price target on the stock.

Alphabet Inc. (NASDAQ:GOOG) has a 26% growing cloud business. The business is expected to generate $9 billion in operating profit by 2027.

Our hedge fund data shows 153 hedge funds long Alphabet Inc. (NASDAQ:GOOG) in the second quarter, and 160 funds long the stock in the previous quarter. Their total stake values were $22.3 billion and $29.7 billion, respectively.

Investment management company First Pacific Advisors mentioned Alphabet Inc. (NASDAQ:GOOG) in its third-quarter 2022 investor letter. Here’s what the firm said:

“The share prices of both Meta and Alphabet Inc. (NASDAQ:GOOG) have declined significantly over the past twelve months. We believe this is due to a combination of a weakening ad market, depreciation of foreign currencies, and increased competitive intensity. On the positive side, we anticipate each company to continue to generate significant amounts of free cashflow even during these challenging times, which we expect to be redeployed into a combination of growth projects and share buybacks.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 252

Share Price as of November 4: $89.30

Amazon.com, Inc. (NASDAQ:AMZN) is an e-commerce giant based in Seattle, Washington. The company engages in the retail sale of consumer products and subscriptions.

Tigress Financial’s Ivan Feinseth holds a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) shares as of November 2. The analyst also placed a $192 price target on the stock.

Amazon.com, Inc. (NASDAQ:AMZN) is a particularly attractive stock to buy right now because it is down 50% from its recent highs as of November 3. The company is renowned in the market as a strong business and is currently trading for a market cap below $1 trillion for the first time in over two years. The company’s cloud service business under the Amazon Web Services platform gives it an edge in another field, apart from e-commerce. The cloud services market is expected to more than triple by 2030, meaning Amazon.com, Inc. (NASDAQ:AMZN) will not stay affordable forever.

In total, 252 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $30.1 billion.

Alger Capital, an investment management company, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s amazon web services business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. Shares outperformed during the quarter as investors were encouraged by strong second-quarter performance despite a challenging macroeconomic environment. Moreover, the company’s retail segment was resilient and avoided discounting inventory like some major retailers did. Revenues for the company’s cloud computing segment, amazon web services (AWS), grew faster than analysts’ estimates during the quarter due to continuing corporate demand for digitization. As a result, management provided better-than-expected forward guidance.”

See also Biggest Ecommerce companies in the US and 15 Countries That Consume The Most Alcohol.

Follow Insider Monkey on Twitter