10 Cheap Value Stocks to Invest In, According To Seth Klarman

1. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Number of Hedge Fund Holders: 42

Forward Price to Earnings Multiple: 17.61

Baupost Group’s Holdings: $524.62 Million

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a financial services company that operates as an advisory, broking, and solutions company. It offers strategy, design consulting, plan management service and support, broking and administration services. While the stock was up by more than 30% in 2024, it’s still a cheap value stock as it has shown resilient growth, with revenue increasing by more than 5% over the past 12 months.

Analysts at Evercore ISI remain optimistic about the company’s growth metrics and long-term prospects as the company shifts to focus on Risk and Broking. The analysts point to a change in the business mix from Human Capital & Benefits (HWC) to higher margin R&B, which is expected to pick up speed in 2025. Willis Towers Watson Public Limited Company (NASDAQ:WTW) is anticipated to regain lost market share and possibly achieve organic growth of over 6% as it increases its workforce in accordance with its specialization strategy,

This mix shift could be accelerated and potentially result in an upside due to the company’s ability to fund more than $1.5 billion in buybacks. Willis Towers Watson Public Limited Company (NASDAQ:WTW) is also expected to outperform as AI-powered analytics and technology services have put it in a strong position to benefit from cost savings and productivity increases across various industries.

While we acknowledge the potential of Willis Towers Watson Public Limited Company (NASDAQ:WTW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WTW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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