5 Very Cheap Stocks to Buy Right Now

3. Flex Ltd. (NASDAQ:FLEX)

Number of Hedge Fund Holders: 35

Real-Time Share Price as of December 12: $17.29

Flex Ltd. (NASDAQ:FLEX) provides electronic manufacturing and supply chain services. In October, the company had announced the acquisition of Anord Mardix, a critical power solutions firm, in a deal worth $450 million as part of a plan to expand in the data center market. 

In earnings results for the third quarter, posted on October 27, Flex Ltd. (NASDAQ:FLEX) reported earnings per share of $0.48, smashing predictions by $0.08. The revenue over the period was $6.2 billion, up over 3% year-on-year. 

At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Flex Ltd. (NASDAQ:FLEX), compared to 43 the preceding quarter worth $1.4 billion.

In its Q4 2020 investor letter, Sound Shore Management, an asset management firm, highlighted a few stocks and Flex Ltd. (NASDAQ:FLEX) was one of them. Here is what the fund said:

“Our third quarter addition of contract manufacturer Flex provides a great example. Originally an electronics-focused outsource manufacturer with highly cyclical cash flows and short product lifecycles, the company has evolved its customer base toward the capital goods, automotive and healthcare industries. Having successfully recast itself as a longer-cycle, “new industrial,” Flex’s stock is benefitting from more stable and diversified cash flows and more consistent revenue growth. CEO Revathi Advaithi joined in early 2019 and she has refocused the company by accelerating the transition to these longer-cycle businesses. Moreover, the company has been shareholder oriented, using the company’s ample free cash to reduce shares outstanding by 35% in the last decade. Lastly, Flex’s Nextracker division should provide nice upside. The solar tracking company manufactures motors, software and systems for utility-scale power generation projects and business is growing quickly as the shift toward sustainable energy sources hastens. We believe Nextracker is underappreciated and could represent a significant amount of hidden value. At 13 times earnings Flex is a very attractive risk reward opportunity.”