In this article, we discuss the 5 stocks to buy under $20 according to Ken Fisher. If you want to read our detailed analysis of Ken Fisher’s investment philosophy, hedge fund returns and history, go directly to 10 Stocks to Buy Under $20 According to Ken Fisher.
5. Murata Manufacturing Co., Ltd. (OTC:MRAAY)
Fisher Asset Management’s Stake Value: $305,112,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: N/A
Murata Manufacturing Co., Ltd. (OTC:MRAAY) ranks next on the list of top stocks to buy under $20 according to billionaire Ken Fisher. Fisher Asset Management held 15.34 million shares in Murata Manufacturing Co., Ltd. (OTC:MRAAY) at the close of Q4 2021, with a value of $305.11 million and representing a 0.17% slice of its total holdings.
The Japanese firm provides electrical components such as capacitors, inductors, resistors, thermistors, sensors and other related products. Murata Manufacturing Co. Ltd.’s (OTC:MRAAY) North American unit Murata Electronics North America in February agreed to acquire the entirety of the shares of Resonant (NASDAQ:RESN), which will become a wholly-owned subsidy of the company. This $295.7 million deal will allow both firms to increase their offerings and expand their market reach and customer base.
In January, Goldman Sachs analyst Daiki Takayama reiterated a ‘Buy’ rating on Murata Manufacturing Co. Ltd. (OTC:MRAAY) revising the price target to 10,800 yen, up from 10,600 yen, noting that he remains remains bullish on the firm’s monolithic ceramic capacitors.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Fisher Asset Management’s Stake Value: $385,003,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 26
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is an oil and gas company based in Rio de Janeiro, Brazil. With a market cap of $92.16 billion, it is one of the largest producers of oil globally. Fisher Asset Management owns a $385 million stake in the firm as of Q4, comprising of 35 million shares and amounting to 0.21% of its total holdings.
Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to ‘Buy’ from ‘Neutral’ in December, and set a price target of $14.20, forecasting a positive risk/reward for the company heading into 2022. As of March 4, the firm has gained a whopping 90.17% in the last 12 months, and 32.15% year to date.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) reported its Q4 earnings on February 24, and recorded an EPS of $0.71, beating estimates by $0.06. Quarterly revenue of $26.22 billion was above analysts’ forecasts by $1.21 billion.
Investors were seen loading up on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) shares, with 26 hedge funds holding stakes in the company in Q4 2021, up from 23 in the previous quarter.
3. Fanuc Corporation (OTC:FANUY)
Fisher Asset Management’s Stake Value: $419,877,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 2
Fanuc Corporation (OTC:FANUY) is a Japanese firm which provides factory automation products to the manufacturing industry around the globe. These include lasers, robots, compact machining centers, electric injection molding machines and ultra-precision machines. As of the fourth quarter, Ken Fisher held 19.83 million shares in Fanuc Corporation (OTC:FANUY), with a combined value of $419.87 million. This is up 5% from the previous quarter where the billionaire held 19.03 million shares in the firm.
2 out of 924 elite hedge funds tracked by Insider Monkey were bullish on Fanuc Corporation (OTC:FANUY) in the fourth quarter, the same as the quarter before.
On February 17, BofA analyst Kenjin Hotta downgraded Fanuc Corporation (OTC:FANUY) to ‘Neutral’ from ‘Buy’, noting that he sees a peak for Japanese machine tool orders as of March, and believes investors should pivot towards stocks better positioned for growth, or defensive stocks that tend to perform better during down-cycles.
2. Intesa Sanpaolo S.p.A. (OTC:ISNPY)
Fisher Asset Management’s Stake Value: $476,500,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 1
Intesa Sanpaolo S.p.A. (OTC:ISNPY) is one of the largest banks in Europe, providing a range of financial services including consumer credit, e-money, leasing services, wealth management and private banking services. The Italian firm trades with a market cap of $40.14 billion.
As of the end of December, Fisher Asset Management held a stake worth $476.5 million in Intesa Sanpaolo S.p.A. (OTC:ISNPY), consisting of 30.7 million shares and amounting to a 0.26% slice of the fund’s total holdings. This signaled an increase of 4% in holding from Q3, where the fund held 29.64 million shares in the firm.
In February, Morgan Stanley analyst Antonio Reale gave Intesa Sanpaolo S.p.A. (OTC:ISNPY) an ‘Overweight’ rating and a price target of €3.70, up from €3.30. Deutsche Bank analyst Giovanni Razzoli gave the Italian firm a ‘Buy’ rating and a revised price target of €3.30.
1. ING Groep N.V. (NYSE:ING)
Fisher Asset Management’s Stake Value: $674,347,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 7
ING Groep N.V. (NYSE:ING) is a Dutch banking company which provides financial services including asset management, life and non-life insurance, business lending and mortgage services to clients around the globe. In February, UBS analyst Johan Ekblom raised the firm’s price target on ING Groep N.V. (NYSE:ING) to €17 from €16.30 and reiterated a ‘Buy’ rating on the company shares.
7 out of 924 elite hedge funds tracked by Insider Monkey held positions worth roughly $686 million in ING Groep N.V. (NYSE:ING) in the fourth quarter of 2021. This is down from 8 hedge funds in the preceding quarter, holding combined stakes worth $693 million.
In the fourth quarter, Fisher Asset Management owned 48.44 million shares of ING Groep N.V. (NYSE:ING) worth $674.34 million, which accounted for 0.37% of the fund’s overall holdings. In comparison, Ken Fisher held 46.38 million shares of the firm in the quarter before.
On March 2, ING Groep N.V. (NYSE:ING) announced that it had stopped pursuing new businesses with Russian entities, and had also waived fees for transactions to Ukraine through its retail markets for personal customers. It also announced a €3 million donation towards UNICEF’s relief efforts to help children in war-affected Ukraine.
Artisan Partners, an investment firm, mentioned ING Groep N.V. (NYSE:ING) in its Q4 2021 investor letter, stating:
“While European bank stocks generally did well in 2021, ING performed exceptionally well—up almost 70% in euros. ING is the largest domestic lender in the Benelux and also has fintech operations with strong market positions in major markets including Australia, Germany, Spain, France, Italy and several Eastern European markets. ING is profitable, and it operates with significant excess capital that it’s accumulated over several years through retained earnings. The pandemic’s onset led to a regulatory moratorium on distributions to shareholders, who reacted by pushing the share price down to levels last seen during the 2008 financial crisis. Back in 2008, ING was thinly capitalized, overdiversified and losing money—a very different profile from its profitable and overcapitalized position in 2020. We saw this as an opportunity and increased our position, and the price rebounded 60% from the 2020 bottom. Even after that impressive gain, the shares remained cheap, trading at 58% of book value—though even that simple statistic understates the undervaluation. At the time, the bank carried an estimated €12 billion of excess capital on a market cap of €30 billion. Net of that excess capital, the shares traded at 4.6X our estimate of normalized earnings. In 2021, conditions changed. The pandemic receded, leading to relaxed regulatory restrictions on shareholder distributions. In addition, profits boomed as provisions set aside for pandemic-era credit losses proved unnecessary. Additionally, a new CEO appointed in July 2020 has done a great job focusing the business on profitable geographies. Changes to the business have both improved profitability and increased the company’s already overcapitalized balance sheet. The share price has rebounded close to book value—a much more reasonable valuation.”
You can also take a look at 10 Best Renewable Energy Stocks to Buy Now and 10 Best High Yield Dividend Stocks To Buy.
