15 Best Penny Stocks to Buy According to Billionaires

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12. Lloyds Banking Group plc (NYSE:LYG)

Price: $3.67

Number of Hedge Fund Holders: 11 

Number of Billionaire Investors: 5

Total Value of Billionaire Holdings: $22,794,321

Lloyds Banking Group plc (NYSE:LYG) is a UK-based financial services provider focused on retail and commercial customers. The company operates through the Retail Division, Commercial Banking Division, and Insurance, Pensions & Investments Division. It also operates several subsidies including Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows, leveraging distinct customer segments.

On March 4, Alvaro Serrano from Morgan Stanley upgraded Lloyds with a Buy rating and a £0.90 price target. Serrano noted that Morgan Stanley forecasts 6% NII growth in 2025 and 9% in 2026, driven by higher deposit yields and liability repricing. Moreover, Early 2025 data suggests Lloyds will exceed its £13.5 billion NII guidance for 2025. In addition, the analyst also highlighted that Lloyds Banking Group plc’s (NYSE:LYG) hedging strategy, which initially locked in low yields, is expected to unwind by 2026, boosting margins further. The stock was held by 5 billionaire investors in Q4 2024, making it one of the best penny stocks to buy according to billionaires.

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