Top 5 Extreme Value Stocks To Buy

In this article, we discuss the top 5 extreme value stocks to buy. To read the detailed analysis and performance history of value stocks, go directly to the Top 11 Extreme Value Stocks To Buy.

5. Donnelley Financial Solutions, Inc. (NYSE:DFIN)

Number of Hedge Fund Holders: 21

Donnelley Financial Solutions, Inc. (NYSE:DFIN) was the financial segment of R.R. Donnelley & Sons but was established as an independent corporation in 2016. The company offers risk and compliance solutions and is one of the best extreme value stocks to buy.

On October 13, Donnelley Financial Solutions, Inc. (NYSE:DFIN) introduced Tailored Shareholder Reports (TSR), a SaaS offering, to its clients that use its product, ArcReporting. According to the management of Donnelley Financial Solutions, Inc. (NYSE:DFIN), its investment company clients will favor TSR to meet the requirements of the regulation by the U.S. Securities and Exchange Commission.

On November 1, Donnelley Financial Solutions, Inc. (NYSE:DFIN) announced its Q3 non-GAAP EPS of $0.72, topping estimates by $0.12, while the revenue reported by the company was $180 million. In the quarter, the software solutions net sales saw an increase of 5.3% YoY.

4. The Bancorp, Inc. (NASDAQ:TBBK)

Number of Hedge Fund Holders: 22

The Bancorp, Inc. (NASDAQ:TBBK) is a Delaware-based financial holding company and is one of the top extreme value stocks to buy. The company has two subsidiaries, namely, The Bancorp Bank and National Association.

On October 30, Piper Sandler increased the price target on The Bancorp, Inc. (NASDAQ:TBBK) stock to $49 from $46 and maintained an Overweight rating.

On October 26, The Bancorp, Inc. (NASDAQ:TBBK) announced its Q3 GAAP EPS of $0.92, and its revenue increased 31.3% YoY to $115.66 million and beat the analysts’ estimates by $25.51 million.

3. Winnebago Industries, Inc. (NYSE:WGO)

Number of Hedge Fund Holders: 23

Winnebago Industries, Inc. (NYSE:WGO) is a manufacturer of outdoor lifestyle products like motorhomes, pontoons, travel trailers, and more. The company markets its products under the brands, Winnebago, Grand Design RV, Chris Craft, Newmar, and Barletta.

In the last three months, 6 Wall Street analysts have covered Winnebago Industries, Inc. (NYSE:WGO) stock, and 4 analysts maintain a Buy rating. The average price target is $70.20, showing an upside of 9.18% to the company’s stock price at the time of the November 3 market close.

2. M/I Homes, Inc. (NYSE:MHO)

Number of Hedge Fund Holders: 25

M/I Homes, Inc. (NYSE:MHO) is an Ohio-based builder of single-family homes and provides construction-related services in Illinois, North Carolina, Minnesota, Indiana, Texas, Florida, and Washington, D.C.

According to the database of Insider Monkey which tracks 910 elite hedge funds, 25 hedge funds had investments in M/I Homes, Inc. (NYSE:MHO) stock in the second quarter. The most prominent shareholder of the company was Matthew Lindenbaum’s Basswood Capital after it increased its stake in the company by 9% to 269,494 shares worth $23.497 million.

On October 25, M/I Homes, Inc. (NYSE:MHO) posted its Q3 earnings result in which the GAAP EPS was $4.82, beating the estimates by $0.55. The revenue grew 4% to $1.05 billion.

M/I Homes, Inc. (NYSE:MHO) was mentioned in Miller Value Partners’ first-quarter 2023 investor letter. Here is what it said:

“During the quarter, our largest positive contributor was M/I Homes, Inc. (NYSE:MHO), with share prices up in excess of 30%. Homebuilders in general had been under pressure for much of last year due to marketplace concerns on the potential impact from higher mortgage rates and lower housing affordability. However, as mortgage rates pull back the positive demographics and lack of housing supply over the past 10 years provides a very favorable long-term supply/demand picture for the industry that should shorten the current downturn. M/I Homes is nicely diversified covering multiple home-type categories, with properties in valuable local communities in the Midwest and Southeast (#2 in the Jon Burns Real Estate Consulting Submarket Desirability Index). M/I Homes’ attractive asset base, strong balance sheet and ongoing valuation discount to peers should provide an attractive long-term reward/risk investment opportunity.”

1. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)

Number of Hedge Fund Holders: 25

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), initially called Microbia, Inc., is a pharmaceutical company that is focused on human therapeutics and gastrointestinal products. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) has operations in the U.S. and Switzerland and has two brands, Linzess and Constella.

Two Wall Street analysts have covered Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) stock over the last three months with an average price target of $21, and both maintain a Buy rating on the company stock.

In Q2, the number of hedge funds with a stake in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) grew to 25 from 20 in the previous quarter. The most prominent shareholder of the company was Alex Denner’s Sarissa Capital Management with 16.39 million shares worth nearly $174.39 million, making up 17.36% of the fund’s portfolio.

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