In this article, we will discuss the 15 Best Affordable Stocks Under $30. You can skip our analysis of the current market condition and go directly to the 5 Best Affordable Stocks Under $30.
The equity markets around the world have continued to decline in 2022 for various reasons. The year started off with rising inflation around the world as economies recovered from COVID-19 shutdowns, and the stimulus packages announced by central banks fueled demand. To tackle the challenge of inflation, the central banks, including the US FED, embarked on a rate-hike cycle, which started the downturn in the equity markets across the globe. Higher interest rates cause stocks to decline.
It is no secret that we are in the middle of a bear market as recession fears are on the rise. While most investors fear the bear market, many look for good opportunities to hand-pick stocks since, in a bear market, even many solid stocks trade at a discounted price. Therefore, in this article, we will talk about the 15 best affordable stocks under $30.
Photo by Chris Liverani on Unsplash
Our Methodology
We have selected stocks that are trading under $30 and have an attractive forward P/E ratio. These stocks are also popular among the 920 elite hedge funds tracked by Insider Monkey and also have strong analyst ratings from Wall Street. We have ranked the stocks from #15 to #1 as per their forward P/E ratio. We took these forward P/E ratios from Yahoo Finance’s “Statistics” tab of each company.
15. Puma Biotechnology, Inc. (NASDAQ:PBYI)
Price as of December 01: $4.47
Forward P/E ratio as of December 01: 10.93
Number of Hedge Fund Holders: 13
Puma Biotechnology, Inc. (NASDAQ:PBYI) is a biopharmaceutical company that produces and markets breakthrough cancer treatment solutions. The company in-licenses the global production and marketing rights to PB272, PB272, and PB357.
On November 03, 2022, Puma Biotechnology, Inc. (NASDAQ:PBYI) reported results for Q3 2022, posting strong revenue growth of 23.6% YoY. The company’s revenue for the quarter amounted to $57.1 million, while the Normalized EPS was reported at $0.05.
In addition to Puma Biotechnology, Inc. (NASDAQ:PBYI), Coterra Energy Inc. (NYSE:CTRA), and Viatris Inc. (NASDAQ:VTRS) are included in our list of 15 best affordable stocks under $30.
According to Insider Monkey’s database, 13 hedge funds held stakes in Puma Biotechnology, Inc. (NASDAQ:PBYI) at the end of the third quarter ending September 2022. Camber Capital Management remained the leading stakeholder in the company at the end of Q3 2022.
14. Regions Financial Corporation (NYSE:RF)
Price as of December 01: $22.86
Forward P/E ratio as of December 01: 9.18
Number of Hedge Fund Holders: 32
Regions Financial Corporation (NYSE:RF) is a bank holding corporation headquartered in Birmingham, Alabama. Regions Financial Corporation (NYSE:RF) offers an extensive range of financial services to a diverse client base, including retail and mortgage banking, commercial banking, and wealth and investment management.
On November 02, 2022, Vivek Juneja, an analyst at JPMorgan, increased his price target on Regions Financial Corporation (NYSE:RF) to $25 while keeping an Overweight rating on the stock. The analyst, in a research note, stated that the bank stocks are poised to do well as investors rotate from other sectors due to significant macro-headwinds.
According to Insider Monkey’s database, 32 hedge funds owned stakes in the company at the end of the September quarter. Pzena Investment Management held the biggest stake in Regions Financial Corporation (NYSE:RF) at the end of Q3 2022.
13. Pilgrim’s Pride Corporation (NASDAQ:PPC)
Price as of December 01: $26.05
Forward P/E ratio as of December 01: 9.06
Number of Hedge Fund Holders: 22
Pilgrim’s Pride Corporation (NASDAQ:PPC) is an American corporation that manufactures, processes, markets, and distributes fresh, frozen, and value-added chicken and hog products to distributors, retailers, and food service operators.
On October 25, 2022, Benjamin Theurer, an analyst at Barclays, reduced his price target on Pilgrim’s Pride Corporation (NASDAQ:PPC) to $29. The analyst currently has an Overweight rating on the stock as the company’s strong Q3 results reflect a solid operating environment.
As per Insider Monkey’s proprietary database, 22 hedge funds were bullish on Pilgrim’s Pride Corporation (NASDAQ:PPC), as of the end of the third quarter. AQR Capital Management was the biggest stakeholder in the company’s stock at the end of Q3 2022.
12. Graphic Packaging Holding Company (NYSE:GPK)
Price as of December 01: $22.71
Forward P/E ratio as of December 01: 8.76
Number of Hedge Fund Holders: 38
Graphic Packaging Holding Company (NYSE:GPK) is a prominent provider of packaging solutions to food, beverage, and other consumer goods firms. The company holds a leading position in coated unbleached kraft and coated recycled boards.
On October 26, 2022, Christopher Parkinson, an analyst at Mizuho, raised his price target on Graphic Packaging Holding Company (NYSE:GPK) to $29 while keeping a Buy rating on the stock. The analyst, in a research note, stated that the current demand levels remain strong and should provide support to earnings in a tough macro-environment.
As per Insider Monkey’s database, 38 funds remained bullish on the company at the end of Q3 2022. Impax Asset Management had the biggest long position on the company’s shares at the end of the third quarter.
Here is what L1 Capital had to say about Graphic Packaging Holding Company in its Q3 2021 investor letter:
We reinvested the proceeds from the partial sale of Eagle Materials by increasing the Fund’s position in Graphic Packaging. We expect the company to deliver strong earnings and cashflow over coming years, and the company remains undervalued at its current share price.
11. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Price as of December 01: $12.35
Forward P/E ratio as of December 01: 8.47
Number of Hedge Fund Holders: 6
Plains All American Pipeline, L.P. (NASDAQ:PAA) operates in the pipeline transportation, storage, and collecting of crude oil and natural gas liquids all over the United States and Canada through its subsidiaries. The company operates in two divisions: crude oil and natural gas liquids.
On October 19, 2022, Robert Kad, an analyst at Morgan Stanley, increased his price target on Plains All American Pipeline, L.P. (NASDAQ:PAA) to $16 while keeping an Overweight rating on the stock. The analyst believes that share buybacks and revisions to CAPEX could be catalysts for growth in the near term.
As per Insider Monkey’s database, 6 hedge funds remained bullish on Plains All American Pipeline, L.P. (NASDAQ:PAA) at the end of Q3 2022. Arrowstreet Capital came out to be the biggest holder of the company’s shares at the end of the quarter.
10. Par Pacific Holdings, Inc. (NYSE:PARR)
Price as of December 01: $23.15
Forward P/E ratio as of December 01: 8.03
Number of Hedge Fund Holders: 23
Par Pacific Holdings, Inc. (NYSE:PARR) is a Houston-based company that owns and operates leading energy and infrastructure enterprises. The company sources, markets, transports, and distributes crude oil and refined goods. Par Pacific Holdings, Inc. (NYSE:PARR)’s business is divided into three divisions: refining, retail, and logistics.
On October 24, 2022, Jason Gabelman, an analyst at Cowen, increased his target price on Par Pacific Holdings, Inc. (NYSE:PARR) to $28. The analyst has an Outperform rating on the stock and believes that the company’s recent acquisition of Billings refinery from Exxon would diversify its operations and would create value for the company.
As per Insider Monkey’s database, 23 hedge funds owned stakes in Par Pacific Holdings, Inc. (NYSE:PARR) at the end of the September quarter. Rubric Capital Management was the most bullish fund on the company’s stock at the end of Q3 2022.
9. Ford Motor Company (NYSE:F)
Price as of December 01: $13.77
Forward P/E ratio as of December 01: 7.67
Number of Hedge Fund Holders: 47
Ford Motor Company (NYSE:F) is an American vehicle manufacturer based in Michigan. The company develops, manufactures, markets, and services sedans, ford trucks, sports vehicles, and electrified vehicles.
On October 05, 2022, Adam Jonas, an analyst at Morgan Stanley, upgraded Ford Motor Company (NYSE:F)’s rating to Overweight. The analyst believes that the company’s valuation is significantly lower compared to its peers, and the restructuring can drive growth in the near future.
At the end of Q3 2022, 47 hedge funds in Insider Monkey’s database were long on Ford Motor Company (NYSE:F) at the end of the quarter. Fisher Asset Management remained the leading stakeholder of the company at the end of Q3 2022.
Here’s what Leaven Partners said about Ford Motor Company (NYSE:F) in its Q3 2022 investor letter:
In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.
8. Hewlett Packard Enterprise Company (NYSE:HPE)
Price as of December 01: $16.31
Forward P/E ratio as of December 01: 7.62
Number of Hedge Fund Holders: 36
Hewlett Packard Enterprise Company (NYSE:HPE) is a global technology leader focused on creating intelligent solutions that enable clients to acquire, analyze, and act on data from the edge to the cloud in real-time. The company’s clients span from small and medium-sized businesses to giant worldwide corporations and government agencies.
On October 20, 2022, Tim Long, an analyst at Barclays, reduced his price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $17 while keeping an Overweight rating on the stock. The lower-than-expected fiscal 2023 guidance by the management prompted the analyst to decrease his target price.
36 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Pzena Investment Management had the biggest long position in the company at the end of Q3 2022.
7. Lumen Technologies, Inc. (NYSE:LUMN)
Price as of December 01: $5.47
Forward P/E ratio as of December 01: 7.36
Number of Hedge Fund Holders: 34
Lumen Technologies, Inc. (NYSE:LUMN) is a technology and communications company that offers various integrated services and products to commercial and residential clients in the United States and worldwide under the Lumen, Quantum Fiber, and CenturyLink brands. The company is divided into two divisions: Business and Mass Markets.
On November 02, 2022, Lumen Technologies, Inc. (NYSE:LUMN) reported results for Q3 2022, recording revenue of $4.39 billion for the quarter. The company’s Normalized EPS of $0.14 missed the market estimate by $0.21.
According to Insider Monkey’s database, 34 hedge funds owned stakes in Lumen Technologies, Inc. (NYSE:LUMN) at the end of the September quarter.
Here is what Longleaf Partners had to say about Lumen Technologies, Inc. (NYSE:LUMN) in its third-quarter 2022 investor letter:
Lumen Technologies, Inc. (NYSE:LUMN) – Global fiber company Lumen was the top detractor in the quarter. In September, the company announced a new CEO, Kate Johnson, would take over for Jeff Storey. Johnson has a strong track record of delivering organic revenue growth, the primary area where Lumen has struggled. Johnson held previous roles at GE and Microsoft, where she most recently served as head of Microsoft US and doubled her division’s revenue in only four years. Multiple checks through our network vouch for her and suggest this leadership change is a positive upgrade that will bring the discipline and focus on sales that Lumen has been missing. The market reacted negatively with concern over the potential for another dividend cut or strategy change. We are confident the stock price reaction is highly overblown versus any impact that a potential dividend cut would have on value per share. The stock now trades at 4.5x EBITDA, and we believe the best value accretive capital allocation move today is share repurchase. Shortly after quarter end, Lumen closed on the sale of part of its consumer business to Apollo, further improving its balance sheet and business mix.
6. AT&T Inc. (NYSE:T)
Price as of December 01: $19.03
Forward P/E ratio as of December 01: 7.34
Number of Hedge Fund Holders: 61
AT&T Inc. (NYSE:T) is a holding company active in the telecommunications, media, and technology industries through its subsidiaries and affiliates. AT&T Inc. (NYSE:T) is the world’s largest telecommunications company in terms of revenue and the third-largest provider of phone services in the United States.
On October 24, 2022, Frank Louthan, an analyst at Raymond James, upgraded his rating on AT&T Inc. (NYSE:T) to Strong Buy. The analyst currently has a target price of $24 on the shares and believes that AT&T Inc. (NYSE:T) will outperform Verizon in the near term.
As per Insider Monkey’s database, 61 hedge funds had stakes in AT&T Inc. (NYSE:T) at the end of the third quarter. D E Shaw remained the leading stakeholder in the company at the end of Q3 2022.
Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:
In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.
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Disclosure: None. 15 Best Affordable Stocks Under $30 is originally published on Insider Monkey.
