10 Worst Affordable Stocks To Buy Right Now

6. Bank OZK (NASDAQ:OZK)

Forward P/E Ratio: 6.88

Earnings Growth This Year: 2.90%

Number of Hedge Fund Holders: 34

Short % of Shares Outstanding: 13.83%

Bank OZK (NASDAQ:OZK) is a regional bank operating through 230 branches across 6 states in the United States, with 12 loan production offices. It offers various financial services to individuals and businesses including accounts, loans, online banking, wealth management, and other related banking services.

While the stock ranks as one of the worst affordable stocks to buy right now as it has a high short interest as a percentage of outstanding shares at 13.83%, the bank has held its position well in the market this year.

It is not only trading at a 41% discount to its sector, but its earnings are expected to grow by around 3% during the year as well, thereby making it cheap at current levels. Bank OZK (NASDAQ:OZK) was also held by 34 hedge funds in the second quarter with total stakes exceeding $372 million. AQR Capital Management is the top shareholder of the company with a position worth $95.8 million.

The bank is heavily exposed to one of the biggest markets in the United States, namely the real estate market. During the recent quarter earnings report, management reported that real estate accounted for 64% of its total non-purchased loans. Real Estate Specialties Group of Bank OZK (NASDAQ:OZK) has positioned itself as the sole secure lender thereby making RESG the lowest risk position in the capital stack.

This strategic position in the real estate market means that a high interest rate in the market results in high bank interest cuts as well. Moreover, the recent Federal Reserve interest rate cuts around the corner can lead to higher activity in the real estate market, subsequently making higher payouts for the bank as well.