In this article, we discuss the 5 best affordable stocks under $40. You can skip our detailed analysis of the current stock market investment trends, and go directly to read 13 Best Affordable Stocks Under $40.
5. Verizon Communications Inc. (NYSE:VZ)
Share Price as of May 8: $39.45
Number of Hedge Fund Holders: 63
Headquartered in New York, Verizon Communications Inc. (NYSE:VZ) operates as an integrated telecommunications services provider, offering a wide range of communication, technology, information, and entertainment products and services.
Insider Monkey’s analysis of 933 hedge fund portfolios in the fourth quarter of the previous year revealed that 63 had acquired and retained shares of Verizon Communications Inc. (NYSE:VZ). Among these hedge funds, Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke, and John Campbell, emerged as the largest investor, with a stake valued at $948 million.
Ariel Global Fund stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its fourth quarter 2023 investor letter:
“Global communications and technology leader, Verizon Communications Inc. (NYSE:VZ) also traded higher in the period following solid earnings results, highlighted by postpaid consumer net additions and an upward revision to free cash flow guidance. From a competitive and financial standpoint, we view Verizon to be among one of the best positioned telecoms in the world. The company’s solid long-term fundamentals are underscored by its predictable, recurring revenue streams and ~7% dividend yield. At current levels, Verizon is trading near an all-time low valuation presenting a compelling total return story for patient investors.”
4. Comcast Corporation (NASDAQ:CMCSA)
Share Price as of May 8: $39.05
Number of Hedge Fund Holders: 63
Founded by Ralph J. Roberts in 1963 and headquartered in Philadelphia, PA, Comcast Corporation (NASDAQ:CMCSA) stands as a leading media, entertainment, and communications company. It operates across diverse segments, including Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Sky, offering video, internet, and phone services.
Insider Monkey’s fourth-quarter database of 933 hedge funds reveals that Comcast Corporation (NASDAQ:CMCSA) is held by 63 hedge fund holders. Notably, Jean-Marie Eveillard’s First Eagle Investment Management emerges as the largest shareholder of the company, with ownership of 32 million shares valued at $1.4 billion.
3. AT&T Inc. (NYSE:T)
Share Price as of May 8: $17.11
Number of Hedge Fund Holders: 66
AT&T Inc. (NYSE:T) ranks among the largest wireless carriers in the United States, offering a broad spectrum of telecommunication and technology services, including Virtual Private Networks, AT&T Dedicated Internet, and Ethernet. The company boasts a wireless network that covers over 99% of Americans, according to its website.
On February 1, J.P. Morgan revised its rating on AT&T Inc. (NYSE:T), anticipating sustained and long-term growth prospects, particularly in the wireless and broadband sectors. Analyst Richard Choe of J.P. Morgan expressed confidence in the additional opportunities arising from this expansion within existing markets. Consequently, Choe upgraded AT&T Inc. (NYSE:T) from Neutral to Overweight and adjusted the year-end price target to $21 from $18.
As of the end of Q4 2023, Insider Monkey’s database indicated that 66 hedge funds had stakes in AT&T Inc. (NYSE:T), up from 52 in the previous quarter. The total value of these stakes amounted to nearly $3 billion. Miller Value Partners held approximately $9.26 million in AT&T Inc. (NYSE:T) shares as of the fourth quarter of 2023.
2. Pfizer Inc. (NYSE:PFE)
Share Price as of May 8: $28.27
Number of Hedge Fund Holders: 79
Founded in 1849 by German entrepreneurs Charles Pfizer and Charles F. Erhart, Pfizer Inc. (NYSE:PFE) is a prominent multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan, New York City. Globally recognized for its significant contributions to medical research, development, and production, Pfizer operates across diverse medical fields, including immunology, oncology, cardiology, endocrinology, and neurology.
Insider Monkey analyzed 933 hedge fund portfolios for their investments in the fourth quarter of 2023, identifying 79 investors in Pfizer Inc. (NYSE:PFE). The largest shareholder among them is D. E. Shaw’s D E Shaw, with a $418 million investment in the company.
1. Bank of America Corporation (NYSE:BAC)
Share Price as of May 8: $37.71
Number of Hedge Fund Holders: 88
Headquartered at the Bank of America Corporate Center in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan, the Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company.
As of May 8, the company’s quarterly dividend stands at $0.24 per share, resulting in a dividend yield of 2.55%. Notably, it has consistently made dividend payments to shareholders for the past 25 years.
In December 2023, 96 out of the 933 hedge funds included in Insider Monkey’s research were investors in the firm. Bank of America Corporation (NYSE:BAC)’s largest shareholder is Buffett’s firm, with a substantial $34.7 billion investment.
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