On June 11, Jeff Richards, Notable Capital managing partner, joined ‘Closing Bell’ on CNBC to discuss the increasing appetite for IPOs and suggested that investors may soon have opportunities to directly invest in the next wave of companies. Richards highlighted recent IPO performance and noted that the average of the last 20 IPOs is up over 50%, with some exceeding 100% gains. He also noted a positive trend of 2-3 recent IPOs with market caps below $5 billion, which is a barrier that bankers were previously hesitant to cross.
Richards also addressed the trend of companies staying private for longer, which limits public market investors’ access to the next wave. In 1996, there were 7,000 public companies, compared to 4,000 today, despite significant GDP and economic growth (10x-15x). This concentration of market value in private assets benefits the venture capital industry. He noted that while venture capital faced liquidity challenges in recent years, an increase in IPO and M&A activity suggests a thaw. He suggested that public market investors can gain exposure to private companies by investing in private equity firms that lend capital to private companies and invest in AI infrastructure like power and data centers.
That being said, we’re here with a list of the 9 cheap new stocks to buy according to analysts.
An investor intently studying a diversified portfolio of stocks & bonds on a digital tablet.
Methodology
We first used the Finviz stock screener to compile a list of stocks with a forward P/E ratio of 15 or less, for companies that went public in the past 3 years. We then selected 9 stocks that had high average upside potential (over 15%) and were the most popular among elite hedge funds. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database.
Note: All data was recorded on June 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9 Cheap New Stocks to Buy According to Analysts
9. Corebridge Financial Inc. (NYSE:CRBG)
Forward P/E Ratio as of June 13: 6.54
Number of Hedge Fund Holders: 32
Average Upside Potential as of June 13: 15.44%
Corebridge Financial Inc. (NYSE:CRBG) is one of the 11 cheap new stocks to buy according to analysts. Earlier this year in February, Corebridge Financial officially launched the next generation of its digital experience for retirement plan participants. The new platform is accessible via the company website and retirement app and aims to offer retirement savers clear, simple, and actionable information, along with effortless control and personalized guidance.
Terri Fiedler, President of Retirement Services at Corebridge Financial, highlighted that the new experience provides intuitive features to support financial wellness. Key new features of the Corebridge digital experience include a Personal Dashboard that centralizes account balance, performance, savings, and contributions. This allows users to even integrate outside assets for a comprehensive financial view.
The platform also integrates various built-in resources, such as a Retirement Outlook Tool, which helps employees estimate their future monthly income in retirement and offers the ability to directly adjust contributions or asset allocation. DALBAR, which is an independent market research firm, recently recognized the Corebridge website for its excellent mobile optimization.
Corebridge Financial Inc. (NYSE:CRBG) provides retirement solutions and insurance products in the US. It operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments.
8. Smithfield Foods Inc. (NASDAQ:SFD)
Forward P/E Ratio as of June 13: 10.63
Number of Hedge Fund Holders: 29
Average Upside Potential as of June 13: 18.87%
Smithfield Foods Inc. (NASDAQ:SFD) is one of the 11 cheap new stocks to buy according to analysts. Earlier on May 20, Smithfield Foods’ brand, called Farmland, launched its new campaign: Our Best for Your Best. The campaign emphasized Farmland’s long-standing commitment to quality since 1959. The campaign rolled out across digital platforms, in-store displays, and social media, with support from a refreshed website, and aimed to provide premium food options and recipe inspiration to consumers.
Accompanying the campaign are two new product offerings. The first is a Premium Ground Pork line, available in two varieties: Original and Taco Style. This 16-ounce product is designed for versatility and rich flavor, made from premium cuts of pork. The second new product is Julienne Turkey, a 12-ounce, fully-cooked, chef-inspired option that can easily enhance salads, wraps, and casseroles.
The brand manager of Farmland at Smithfield Foods, Kevin Hojnicki, noted that the campaign reaffirms that quality matters when feeding loved ones. Both the Premium Ground Pork and Julienne Turkey are now available at select retailers.
Smithfield Foods Inc. (NASDAQ:SFD) produces packaged meats and fresh pork internationally.