5 Best Bargain Stocks To Buy in March

In this article, we discuss 5 best bargain stocks to buy in March. If you want to see more stocks in this selection, check out 12 Best Bargain Stocks To Buy in March. 

5. CarGurus, Inc. (NASDAQ:CARG)

Number of Hedge Fund Holders: 21

CarGurus, Inc. (NASDAQ:CARG) is a Massachusetts-based operator of an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. On February 28, CarGurus, Inc. (NASDAQ:CARG) reported a Q4 non-GAAP EPS of $0.22 and a revenue of $286.7 million, outperforming Wall Street estimates by $0.11 and $5.29 million, respectively. CarGurus, Inc. (NASDAQ:CARG) is one of the best cheap stocks to invest in. 

On March 1, Raymond James increased the target price for CarGurus, Inc. (NASDAQ:CARG) from $16 to $20 and maintained an Outperform rating on the stock. CarGurus, Inc. (NASDAQ:CARG) has reported revenue and EBITDA that met expectations, with consistent growth in its Marketplace, but a weaker performance in its Wholesale division. The company has acknowledged ongoing challenges in its Wholesale segment and has stated that it will work to improve profitability by adjusting its operations, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 21 hedge funds were bullish on CarGurus, Inc. (NASDAQ:CARG), compared to 23 funds in the prior quarter. PAR Capital Management is the largest stakeholder of the company, with 6.7 million shares worth $94.5 million. 

Cove Street Capital made the following comment about CarGurus, Inc. (NASDAQ:CARG) in its Q3 2022 investor letter:

“During the quarter, we started a new position in CarGurus, Inc. (NASDAQ:CARG). The company historically has been a lead generation business, helping car dealers find consumers who are looking to buy or sell a car online. CARG has been successful at this by having world-class search engine optimization (SEO) and search engine marketing (SEM) that helps them achieve top search results on Google. Consumers click these top links on Google when buying or selling a car and enter their information on the CARG website, generating a lead for CARG. CARG sells these high-quality leads to dealers for a significant profit (gross margin of 90%+). The lead generation business has hit maturity as CARG has almost penetrated the entire car dealer market in the US. CARG recently bought an Online Dealer to Dealer (D2D) platform, CarOffer, which helps car dealers sell cars to other dealers as well as buy cars from consumers online. There is a large amount of selling synergies between the Online D2D platform and the legacy lead generation business as they are selling to the same customer base: car dealers. CarOffer has been experiencing huge growth as it gains significant market share from physical dealer auctions. We have initiated a position in CARG after the market over punished the stock due to a tough macro environment. Despite the current macro concerns, we feel CARG is still a high margin, high free cash flow generating business with significant room to grow the CarOffer business.”

4. Titan Machinery Inc. (NASDAQ:TITN)

Number of Hedge Fund Holders: 22

Titan Machinery Inc. (NASDAQ:TITN) owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. It operates through three segments – Agriculture, Construction, and International. Titan Machinery Inc. (NASDAQ:TITN) is one of the best cheap stocks to invest in. 

On December 13, B. Riley analyst Alex Rygiel initiated coverage of Titan Machinery Inc. (NASDAQ:TITN) with a Buy rating and a $48 price target. The analyst believes that a large percentage of the company’s revenue, ranging from 85% to 90%, comes from sales of agricultural and construction equipment to farmers and ranchers, making it a reliable investment during uncertain economic times. Despite challenges faced by the company’s operations in Ukraine, which the analyst suggested have negatively impacted the company’s valuation, Titan Machinery Inc. (NASDAQ:TITN) has recently shown strong financial performance.

According to Insider Monkey’s Q4 data, 22 hedge funds were bullish on Titan Machinery Inc. (NASDAQ:TITN), compared to 18 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 172,106 shares worth $6.8 million.

3. Sally Beauty Holdings, Inc. (NYSE:SBH)

Number of Hedge Fund Holders: 23

Sally Beauty Holdings, Inc. (NYSE:SBH) is a Texas-based company that operates as a specialty retailer and distributor of professional beauty supplies. On February 2, Sally Beauty Holdings, Inc. (NYSE:SBH) reported a FQ1 non-GAAP EPS of $0.52 and a revenue of $957.06 million, outperforming Wall Street estimates by $0.04 and $35.32 million, respectively. It is one of the best cheap stocks to monitor. 

On February 16, Cowen analyst Oliver Chen raised the firm’s price target on Sally Beauty Holdings, Inc. (NYSE:SBH) to $19 from $14 and kept a Market Perform rating on the shares. This comes after the company’s FQ1 results, which were “better than feared.” Despite this positive news, the firm remains cautious about the near-term outlook due to the ongoing price sensitivity of consumers in the current economic climate, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 23 hedge funds were bullish on Sally Beauty Holdings, Inc. (NYSE:SBH), compared to 20 funds in the prior quarter. Bernard Horn’s Polaris Capital Management is the largest stakeholder of the company, with 2.5 million shares worth $32.2 million. 

2. Hibbett, Inc. (NASDAQ:HIBB)

Number of Hedge Fund Holders: 25

Hibbett, Inc. (NASDAQ:HIBB) was founded in 1945 and is headquartered in Birmingham, Alabama. The company offers athletic footwear, athletic and fashion apparel, sports equipment, and related accessories. Hibbett, Inc. (NASDAQ:HIBB)’s Q4 comparable sales increased 15.5% compared to the prior-year quarter, and climbed 39.6% versus the same period pre-pandemic. It is one of the best cheap stocks to invest in. 

On November 29, Justin Kleber, an analyst at Baird, increased the target price of Hibbett, Inc. (NASDAQ:HIBB) from $70 to $75 and maintained an Outperform rating on the shares. Despite Hibbett, Inc. (NASDAQ:HIBB)’s Q4 results falling below Wall Street’s expectations, the analyst commented that the sales of footwear were strong, and the pressure on apparel clearance is expected to ease in the next quarter. Additionally, Kleber believes that the recent decline in the company’s stock price is unwarranted and sees a positive risk/reward ratio.

According to Insider Monkey’s Q4 data, 25 hedge funds were bullish on Hibbett, Inc. (NASDAQ:HIBB), compared to 21 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 320,580 shares worth $21.8 million. 

Here is what Roubaix Capital has to say about Hibbett, Inc. (NASDAQ:HIBB) in their Q4 2020 investor letter:

“The second best short in the quarter was Hibbett Sports (HIBB), a sporting goods retailer. Many businesses were able to benefit from the spending shifts caused by the pandemic. For example, online retailers, companies that sell into the home improvement markets and grocery stores all saw varying degrees of improvement. We did not see HIBB as a clear beneficiary as they have historically underinvested in their online business. However, they managed to post very strong results during their third quarter from leisure spending trends and the stock reacted favorably. We shorted the strength of this rally and continue to hold our position as we do not see HIBB as a longer-term winner in its markets.”

1. Herbalife Nutrition Ltd. (NYSE:HLF)

Number of Hedge Fund Holders: 33

Herbalife Nutrition Ltd. (NYSE:HLF) is a California-based company that offers health and wellness products in North America, Mexico, South and Central America, Europe, the Middle East, Africa, China, and the rest of Asia Pacific. On February 14, Herbalife Nutrition Ltd. (NYSE:HLF) reported a Q4 non-GAAP EPS of $0.53 and a revenue of $1.2 billion, outperforming Wall Street estimates by $0.19 and $70 million, respectively.

On February 3, Bank of America analyst Anna Lizzul began coverage of Herbalife Nutrition Ltd. (NYSE:HLF) with an Underperform rating and a price target of $14. The MLM business model of the company poses the biggest threat to its operations, according to BofA. They argue that it is harder to track the sales of direct sellers in the MLM model than it is for retail-based businesses. Furthermore, Herbalife Nutrition Ltd. (NYSE:HLF)’s exposure to emerging markets is another area of concern, as per the firm.

According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Herbalife Nutrition Ltd. (NYSE:HLF), compared to 24 funds in the prior quarter. William Duhamel’s Route One Investment Company is the biggest position holder in the company, with 10.8 million shares worth $161.3 million. 

Here is what Bronte Capital has to say about Herbalife Nutrition Ltd. (NYSE:HLF) in its Q3 2021 investor letter:

“Herbalife is – as we have discussed many times before – a multi-level marketing scheme selling weight-loss shakes. The idea is simple. If I replaced six meals a week with low-calorie protein shakes and I walked an extra 15 km a week I would quickly lose 15-20kgs. It would be good for me. It is also well-nigh impossible to do.

One solution is to hire a personal trainer (usually of the opposite sex) and have them nag you. You will do tough stuff for an attractive member of the opposite sex. More realistically you could just have your friends nag you. And that is why this works so well as a multi-level marketing scheme. The person who sells you the shakes has an incentive to keep you on the diet.

We have looked at many distributors and we see a weight-loss program – implemented for (literally) millions of people – which works about as well as any weight-loss health program that ever existed. That still means it fails most of the time – but it works enough that we can be proud of owning this stock and the health benefits it provides. Herbalife, it turns out, grew well during COVID. This was initially a surprise to us – as we thought Herbalife depended on the personal touch to make the sale. But, instead, weight loss and associated social clubs moved online – and – in many cases were the main social outlet the customers had.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 12 Most Profitable Mid-Cap Stocks Now and 16 High Growth Non-Tech Stocks That Are Profitable.