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10 Cheap Stocks to Buy According to Billionaire Ken Fisher

In this article, we will take a look at 10 cheap stocks to buy according to billionaire Ken Fisher. You can skip our comprehensive analysis of the history and investment philosophy of Ken Fisher and his fund Fisher Asset Management, and go directly to 5 Cheap Stocks to Buy According to Billionaire Ken Fisher.

We actually prepared this list nine months ago by picking the low valuation stocks in Fisher’s 13F portfolio. These stocks lost an average of -0.5% since then, vs. a loss of 15.5% for the S&P 500 ETF (SPY). The best performing stock in this list returned more than 83%.

Kenneth Lawrence Fisher is the founder of Fisher Asset Management which had a portfolio value of over $189 billion by the end of the September quarter of 2021. Mr. Fisher served for 37 years as the firm’s CEO until the year 2016 and is currently the Executive Chairman and Co-Chief Investment Officer.

Since the initiation of the hedge fund, Ken Fisher’s philosophy was directed by his strategy to cater to wealthy people as the fund had a fixed investment minimum of $500,000. Moreover, Fisher Asset Management charges a flat fee of between 1% and 1.5% which depends on the size of the portfolio. Mr. Fisher also employed aggressive advertising to gain clients and keep them actively engaged in the industry. Subsequently, Ken Fisher’s fund is known to be among the largest wealth managers in the US. Fisher Asset Management focuses primarily on technology, healthcare, and services companies’ stocks.

Apart from the 10 cheap stocks in Ken Fisher’s portfolio that are listed in this article, his fund also held significant shares of many prominent companies by the end of the third quarter of 2021, including Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).

Fisher Asset Management owns over 60 million shares of Apple Inc. (NASDAQ:AAPL) that were valued at $8.6 billion by the end of the third quarter of 2021. This holding constitutes 5.35% of its 13F portfolio. In Amazon.com, Inc. (NASDAQ:AMZN), Fisher Asset Management holds 1.9 million shares with a combined value of $6.3 billion as of Q3 of 2021. When it comes to Microsoft Corporation (NASDAQ:MSFT), the fund has a stake of $7.2 billion as it owns 25 million shares in the company as of Q3 2021.

Our Methodology

For this analysis, we picked the 10 cheapest stocks from the third quarter 13F portfolio of Ken Fisher’s hedge fund. The price of each stock was noted on December 8, 2021. The hedge fund sentiment toward each stock was assessed using data from the 867 hedge funds tracked by Insider Monkey as of the third quarter of 2021.

With this context in mind, here is our list of the 10 cheap stocks to buy according to billionaire Ken Fisher.

10 Cheap Stocks to Buy According to Billionaire Ken Fisher

10. Itau Unibanco Holding SA (NYSE:ITUB)

Fisher Asset Management’s Stake Value: $114.012 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.07%

Number of Hedge Fund Holders as of Q3 2021: 16

Stock Price as of December 8, 2021: $4.04

Return since December 8. 2021: 28.1%

Formed by the merger of Banco Itaú and Unibanco in the year 2008, Itau Unibanco Holding SA (NYSE:ITUB) is a financial services company based in São Paulo, Brazil. Fisher Asset Management held over 21 million shares in Itau Unibanco Holding SA (NYSE:ITUB) by the end of the third quarter of 2021. The company’s shares made up 0.07% of the fund’s 13F portfolio. Moreover, Fisher Asset Management is the leading stakeholder in the company as of Q3 2021. Of the 867 stocks that Insider Monkey tracks, 16 were bullish on Itau Unibanco Holding SA (NYSE:ITUB) as of Q3 2021, with a total value of roughly $379 million.

With a price of $4.04 as of December 8, 2021, the stock is one of the cheap stocks to buy according to billionaire Ken Fisher. On July 27 this year, Bradesco BBI analyst Gustavo Schroden initiated the coverage of Itau Unibanco Holding SA (NYSE:ITUB) with an ‘Outperform’ rating and a price target of $6.8. The analyst declared that the valuation of Itau Unibanco Holding SA (NYSE:ITUB)’s stock was more attractive than its competitors in the private sector. The company announced its Q3 2021 earnings on November 3. The Q3 revenue of $5.4 billion grew year over year by 18.2%. The EPS for the company as of Q3 was $0.11.

Itau Unibanco Holding SA (NYSE:ITUB) is one of the most significant companies that Fisher Asset Management is invested in, alongside Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT). 

9. ASASE Technology Holding Co., Ltd. (NYSE:ASX)

Fisher Asset Management’s Stake Value: $189.404 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.11%

Number of Hedge Fund Holders as of Q3 2021: 10

Stock Price as of December 8, 2021: $8.10

Return since December 8. 2021: -22.6%

Established in 1984, ASASE Technology Holding Co., Ltd. (NYSE:ASX), also known as Advanced Semiconductor Engineering, Inc., manufactures and tests semiconductors. The Taiwanese company’s revenue for the month of October was $1.9 billion which grew year over year by 14.7%. However, the revenue fell by 2.3% since September this year. On October 28, Laura Chen, an analyst at KGI Securities, downgraded the stock to “Neutral” from “Outperform” with a price target of $4.25. On December 1, the company announced that it would sell shares worth $1.46B to Beijing Wise Road Asset Management in accordance with an agreement that the two parties entered into.

Although Fisher Asset Management decreased its stake in the company by 9% during the third quarter of 2021, Ken Fisher’s fund is still the leading stakeholder in the company. The hedge fund held over 24 million shares of ASASE Technology Holding Co., Ltd. (NYSE:ASX) as of Q3 2021 which makes up 0.11% of its portfolio. The fund had a stake of $189 million in the company.

Out of the 867 elite stocks that Insider Monkey tracks, 10 had stakes in ASASE Technology Holding Co., Ltd. (NYSE:ASX) by the end of Q3 2021, worth over $271 million. Compared to the 7 hedge funds that held shares by the end of Q2 the same year, the hedge fund sentiment around ASASE Technology Holding Co., Ltd. (NYSE:ASX) is positive.

8. Cleveland-Cliffs Inc (NYSE:CLF)

Fisher Asset Management’s Stake Value: $249.490 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.15%

Number of Hedge Fund Holders as of Q3 2021: 35

Stock Price as of December 8, 2021: $21.18

Return since December 8. 2021: -21.3%

Formerly known as Cliffs Natural Resources, Cleveland-Cliffs Inc (NYSE:CLF) is a mining company that extracts iron ore. The Ohio-based company also provides steelmaking, stamping, and tooling services. Priced at $21.18 as of December 8, 2021, the stock is among the 10 cheap stocks to buy according to billionaire Ken Fisher.

The fund held over 12 million shares of the company by the end of Q3 2021 which were valued at over $249 million. Based on the data of 867 funds tracked by Insider Monkey as of the end of the third quarter, Fisher Asset Management held the most shares of the company. Overall, 35 funds were bullish on Cleveland-Cliffs Inc (NYSE:CLF) at the end of Q3, with a combined value of $682 million.

On October 22, the company announced its revenue of $6 billion which beat estimates by $370 million and demonstrated a year-over-year growth of 264%. The company’s Q3 EPS was $2.3, surpassing consensus by $0.09. As a result, on November 16, Gordon Johnson, an analyst at GLJ Research, increased the price target on Cleveland-Cliffs Inc (NYSE:CLF) to $36.06 from $28.35 and maintained a “Buy” rating on the stock. Following this, on November 16, Wolfe Research analyst Timna Tanners assumed the coverage of Cleveland-Cliffs Inc (NYSE:CLF) with an “Outperform” rating and set a price target of $30 on the stock.

7. Trip.com Group Limited (NASDAQ:TCOM)

Fisher Asset Management’s Stake Value: $272.752 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.16%

Number of Hedge Fund Holders as of Q3 2021: 36

Stock Price as of December 8, 2021: $27.90

Return since December 8. 2021: -6.6%

An online travel company headquartered in Shanghai, China, Trip.com Group Limited (NASDAQ:TCOM) offers transportation, accommodation,  corporate travel management, and packaged tours.

Trip.com Group Limited (NASDAQ:TCOM)’s stock price as of December 8, 2021, is $27.9. Fisher Asset Management held roughly 8.9 million shares with a combined worth of more than $272 million. Nevertheless, Kerr Neilson’s Platinum Asset Management is the leading institutional investor with over 10 million shares worth $319 million. Overall, 36 hedge funds had stakes in Trip.com Group Limited (NASDAQ:TCOM) by the end of Q3 2021 with a combined value of $1.8 billion.

On September 23, Trip.com Group Limited (NASDAQ:TCOM) announced its FQ2 revenue of $912 million that grew year over year by 104% and surpasses consensus estimates by $25 million. However, the EPADS was -$0.16 which missed estimates by $0.14. Following this, on September 27, CLSA analyst Elinor Leung maintained a “Buy” rating and decreased the price target on Trip.com Group Limited (NASDAQ:TCOM) to $46 from $50. According to the analyst, even though the FQ2 results surpassed expectations, the second-half outlook is weak due to multiple COVID outbreaks in the country.

6. Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA)

Fisher Asset Management’s Stake Value: $293.549 million

Percentage of Fisher Asset Management’s 13F Portfolio: 0.18%

Number of Hedge Fund Holders as of Q3 2021: 10

Stock Price as of December 8, 2021: $5.73

Return since December 8. 2021: -21%

Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) is a multinational financial services company headquartered in Madrid, Spain. The company operates in 5 countries around the world. On October 29, Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) announced its Q3 revenue of $4.2 trillion, demonstrating a year-over-year growth rate of 5.6%. The EPS for the quarter was $0.2. 

On November 24, Alvaro Serrano, an analyst at Morgan Stanley, decreased the price target on Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) to $7.9 from $8.2 and maintained an “Overweight” rating on the shares. On November 26, Barclays analyst Fernando Gil De Santivanes raised his price target on the company to $7.4 from $7.2 and kept an “Equal-Weight” rating on the stock. 

Out of the 867 hedge funds tracked by Insider Monkey, 10 were bullish on Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) with a worth of $310 million by the end of Q3 2021, as compared to 9 funds with a combined stake of $274 million at the end of Q2 2021. As of Q3 2021, Fisher Asset Management holds over 44 million of the company’s shares with a value of more than $293 million and constituting 0.18% of the fund’s 13F portfolio. During the third quarter of 2021, Fisher Asset Management increased its stake in Banco Bilbao Vizcaya Argentaria SA (NYSE:BBVA) by 5%. This indicates a positive hedge fund sentiment about the stock. 

Click to continue reading and see 5 Cheap Stocks to Buy According to Billionaire Ken Fisher.

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Disclosure: None. 10 Cheap Stocks to Buy According to Billionaire Ken Fisher is originally published on Insider Monkey.

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