10 Oversold Penny Stocks To Invest In Now

3. Holley Inc. (NYSE:HLLY)

Year to Date Gain as of October 25: -43.24%

Forward Price to Earnings Ratio: 7.18

Number of Hedge Fund Holders: 17

Holley Inc. (NYSE:HLLY) is a designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts. It mainly deals with performance automotive products, including carburetors, fuel pumps, fuel injection systems, and nitrous oxide injection.

While the stock is down by 43.24%, it remains under pressure after delivering mixed second-quarter results and cutting its full-year guidance. Its net sales fell 3.3% to $169.5 million as the company felt the full effects of a challenging macroeconomic environment. Nevertheless, Holley Inc. (NYSE:HLLY) met its financial priorities regarding cash flow deleveraging and cost cuts. Net income in the quarter soared to $17.1 million from $13 million a year ago. Likewise, it ended the quarter with $24.4 million in free cash flow.

Holley Inc. (NYSE:HLLY)’s competitive edge as one of the oversold penny stocks to invest in now stems from its strong portfolio of well-known brands, which includes Holley, MSD, Simpson, Flowmaster, and over 50 others. These brands enable the company to operate in crucial automotive aftermarket segments, such as safety and racing products and domestic muscle enthusiasts.’

Holley Inc. (NYSE:HLLY)’s current predicament indicates a larger pattern in the automotive industry, where businesses are attempting to position themselves for future growth while battling a variety of economic pressures. The company’s initiatives to increase financial stability and operational effectiveness are necessary to get through the current economic climate.

As of the end of the second quarter of 2024, 17 hedge funds reported owning stakes in Holley Inc. (NYSE:HLLY). The most notable of these hedge funds was Ian Cumming and Joseph Steinberg’s Leucadia National, which has a stake worth about $4.12 million in Holley Inc. (NYSE:HLLY).