10 Cheap Penny Stocks to Buy According to Hedge Funds

5. ACCO Brands Corp. (NYSE:ACCO)

Forward P/E Ratio as of March 11: 4.8

Share Price as of March 11: $4.82

Number of Hedge Fund Holders: 27

ACCO Brands Corp. (NYSE:ACCO) designs, manufactures, and markets an array of consumer, school, technology, and office products. It operates through its Americas and International segments and offers everything from note-taking and filing solutions to gaming accessories and workspace machines. These are distributed under well-known brands like Five Star, Kensington, and Mead.

The company’s Technology Accessories segment stood out as a growth driver in 2024. It was fueled by new product introductions and the international expansion of its gaming accessories business. This growth helped mitigate overall sales declines. In Q4 2024, overall sales declined by 8% year-over-year, but the Technology Accessories segment grew. The company plans to innovate and develop new products within this category to offset potential declines in other categories. For instance, office products are experiencing headwinds due to changing work habits.

ACCO Brands Corp. (NYSE:ACCO) reported full-year free cash flow of $132 million, which was in line with the company’s outlook. It’s now implementing a multi-year cost reduction program, which targets $100 million in savings by the end of 2026. For 2025, the company expects comparable sales to decline 1% to 5%, and adjusted EPS to be in the range of $1.00 to $1.05 per share.