In this article, we discuss 5 value stocks that analysts are recommending amid market volatility. If you want to read our detailed analysis of these stocks, go directly to Analysts are Recommending These 10 Value Stocks Amid Market Volatility.
5. Minerals Technologies Inc. (NYSE:MTX)
Number of Hedge Fund Holders: 12
PE Ratio: 14.63
Minerals Technologies Inc. (NYSE:MTX) is a New York-based specialty chemicals firm. On February 7, JPMorgan analyst Jeffrey Zekauskas upgraded the stock to Overweight from Neutral with a price target of $75, citing the valuation as the primary reason behind the upgrade.
Minerals Technologies Inc. (NYSE:MTX) has also been on the radar of elite hedge funds amid increased market volatility. At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $94 million in Minerals Technologies Inc. (NYSE:MTX), up from 10 in the preceding quarter worth $101 million.
4. Black Hills Corporation (NYSE:BKH)
Number of Hedge Fund Holders: 16
PE Ratio: 17.05
Black Hills Corporation (NYSE:BKH) operates as a utilities firm. On February 7, Mizuho analyst Paul Fremont upgraded the stock to Buy from Neutral with a price target of $71, citing valuation as one of the main reasons behind the decision to upgrade.
Major hedge funds concur with this bullish thesis on Black Hills Corporation (NYSE:BKH). Among the hedge funds being tracked by Insider Monkey, New York-based investment firm GAMCO Investors is a leading shareholder in Black Hills Corporation (NYSE:BKH), with 201,491 shares worth more than $12 million.
3. General Dynamics Corporation (NYSE:GD)
Number of Hedge Fund Holders: 36
PE Ratio: 18.67
General Dynamics Corporation (NYSE:GD) is an aerospace and defense firm. On February 4, Morgan Stanley analyst Kristine Liwag upgraded the stock to Equal Weight from Underweight and raised the price target to $215 from $210, noting that the management of the firm had provided strong visibility and an encouraging three-year outlook for the Gulfstream business.
General Dynamics Corporation (NYSE:GD) is one of the favorite defense stocks among hedge funds. At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in General Dynamics Corporation (NYSE:GD), compared to 37 in the preceding quarter worth $6.2 billion.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 33
PE Ratio: 19.03
Agnico Eagle Mines Limited (NYSE:AEM) is a mineral exploration firm with prime interests in gold. Barclays analyst Matthew Murphy recently upgraded the stock to Overweight from Equal Weight and raised the price target to $69 from $67, noting that gold stocks presented an “attractive” hedge against possible central bank errors moving forward.
Top hedge funds hold large stakes in Agnico Eagle Mines Limited (NYSE:AEM). Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Agnico Eagle Mines Limited (NYSE:AEM), with 5.2 million shares worth more than $272 million.
1. Simpson Manufacturing Co., Inc. (NYSE:SSD)
Number of Hedge Fund Holders: 19
PE Ratio: 19.88
Simpson Manufacturing Co., Inc. (NYSE:SSD) makes and sells building products. CJS Securities analyst Daniel Moore recently upgraded the stock to Outperform from Market Perform, noting that the firm had a strong growth outlook.
Hedge funds have been bullish on Simpson Manufacturing Co., Inc. (NYSE:SSD) in recent weeks. At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $177 million in Simpson Manufacturing Co., Inc. (NYSE:SSD), the same as in the previous quarter worth $198 million.
In its Q4 2020 investor letter, Conestoga Capital Advisors, an asset management firm, highlighted a few stocks and Simpson Manufacturing Co., Inc. (NYSE:SSD) was one of them. Here is what the fund said:
“SSD is a leading provider of structural connectors to the U.S. housing market. Despite reporting better-than-expected growth in its business, investors focused on several negative factors, including concerns about rising raw material prices, tough 2021 comparisons and the halted rollout of mechanical anchors and fasteners with Home Depot. We believe the company will continue to benefit from a strong residential housing market particularly in the Southern and Western parts of the U.S. Additionally, the company’s focus on internal improvement with respect to working capital should drive long-term shareholder returns.”
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