In this article, we discuss 5 best bargain stocks to buy right now. If you want to see more stocks in this selection, click 10 Best Bargain Stocks To Buy Right Now.
5. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 82
YTD Share Price Decline as of June 30: 38.96%
Intuit Inc. (NASDAQ:INTU) is a California-based company that specializes in financial software, offering products including TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp. Intuit Inc. (NASDAQ:INTU) stock has dropped about 39% YTD as of June 30.
Stifel analyst Brad Reback on May 25 reaffirmed a Buy rating on Intuit Inc. (NASDAQ:INTU) but lowered the price target on the shares to $465 from $580, citing “solid” fiscal Q3 results regardless of “a somewhat lackluster tax season”, driven by solid growth from Credit Karma and Mailchimp. Management also pointed out that it is not witnessing indicators of economic weakness within its business, though it will be impossible to completely avoid a slowing domestic economy, the analyst added.
According to Insider Monkey’s Q1 data, Intuit Inc. (NASDAQ:INTU) was part of 82 hedge fund portfolios, with combined stakes exceeding $6 billion. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 3 million shares worth $1.4 billion.
In its Q1 2022 investor letter, Baron Funds mentioned Intuit Inc. (NASDAQ:INTU). Here is what it said:
“At the company-specific level, with 59% of our holdings posting double-digit declines during the quarter, we had no chance to hold up against the Index that was down less than 5%. The good news is that for the most part, this drawdown did not result in a permanent loss of capital and in many cases, we believe fundamentals have remained robust or improved even though stock prices declined. One example is Intuit (NASDAQ:INTU), the leading provider of accounting software, and our second largest detractor in the quarter. The stock lost 25% of its value (or over $45 billion) due to a miss in quarterly revenues, which was driven by a slower start to the tax season, leading the company to miss consensus estimates for consumer revenues by about $190 million. The slower start to the tax season is of course insignificant to the intrinsic value of the business, as everyone knows there are only two certainties in life and one of them is – TAXES! And so, naturally, Intuit reaffirmed its annual projections. Moreover, results in other segments were ahead of expectations. CEO Sasan Goodarzi explained the outperformance during its quarterly conference call by saying:
‘We have a nearly $300 billion addressable market driven by tailwinds that include a shift to virtual solutions, an acceleration to online and omni-channel capabilities, and digital money offerings. This, combined with the team’s excellence and execution is contributing to the strength of our performance.’
More specifically, Intuit is gaining market share in tax filings (“we are on track to gain share overall again this season”), continues expanding its QuickBooks online offering, which was up 35% year-over-year, and is seeing strong synergies from its Credit Karma acquisition, driven by Intuit’s Lightbox technology, which allows better personalization of offerings to customers (for example, it “doubles the average approval rate for members who apply for credit cards on Credit Karma versus outside of Credit Karma”). The bottom line is that our estimates of Intuit’s intrinsic value were up while the stock price was down and therefore our future expected return has increased.”
4. Boston Omaha Corporation (NYSE:BOC)
Number of Hedge Fund Holders: N/A
YTD Share Price Decline as of June 30: 28.69%
Boston Omaha Corporation (NYSE:BOC) offers billboard advertising, surety insurance and related brokerage, broadband, and investment services. The company was incorporated in 2009 and as of June 30, the stock has dropped about 29% year to date. Despite that, Wells Fargo analyst Steven Cahall on May 25 reiterated his Outperform rating on Boston Omaha Corporation (NYSE:BOC) but slashed the price target to $27 from $33 on market-to-market assets. The analyst contended that the company’s Q1 revenues exceeded his estimates, including the effect of continued deal-making. He pointed out that the present market volatility should only result in additional investment opportunities. This makes it one of the top bargain stocks to buy right now.
3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 99
YTD Share Price Decline as of June 30: 28.94%
Booking Holdings Inc. (NASDAQ:BKNG) is an American travel technology firm that offers online accommodation, food, and travel reservations. The stock has declined about 29% YTD recession fears and higher fuel costs, which are leading people to budget more frugally and taking away funds from travel and leisure.
On June 29, JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Booking Holdings Inc. (NASDAQ:BKNG) but lowered the price target on the stock to $2,435 from $2,900. The analyst reduced estimates and price targets to reflect macro pressures, currency movement, and company-specific factors. He said that Booking Holdings Inc. (NASDAQ:BKNG) remains one of his best ideas.
Among the hedge funds tracked by Insider Monkey, 99 funds reported long positions in Booking Holdings Inc. (NASDAQ:BKNG) at the end of March 2022, up from 92 funds in the prior quarter. Harris Associates is the leading position holder in the company, with 665,415 shares worth $1.5 billion.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Booking Holdings Inc. (NASDAQ:BKNG) in its Q4 2021 investor letter:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included Booking Holdings, an online travel agency with industry-leading margins and a dominant footprint in Europe.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 100
YTD Share Price Decline as of June 30: 64.17%
PayPal Holdings, Inc. (NASDAQ:PYPL) is an American multinational fintech company that promotes online transactions. The stock has taken a massive year to date hit, yet it remains one of the legacy payment technology names. On June 22, Credit Suisse analyst Timothy Chiodo maintained an Outperform rating on PayPal Holdings, Inc. (NASDAQ:PYPL) but lowered the price target on the shares to $95 from $100. The analyst’s survey of PayPal Holdings, Inc. (NASDAQ:PYPL)’s business mix and transactions supports his projected 2022-2025 TPV CAGR of 16%, gross profit CAGR of 10%, and an EPS CAGR of 16%.
According to Insider Monkey’s database, 100 hedge funds reported bullish positions in PayPal Holdings, Inc. (NASDAQ:PYPL) at the end of March 2022, compared to 110 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management held the largest stake in the company, with 16.7 million shares worth $1.94 million.
Here is what Harding Loevner Global Equity Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:
“Taking advantage of valuation opportunities created by performance differences, the U.S. FSV strategy increased its weight in underperforming stock PayPal. PayPal (NASDAQ:PYPL) was the second largest new position and similarly lagged the market with a nearly 40% price decline in the first quarter.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
YTD Share Price Decline as of June 30: 37.67%
Amazon.com, Inc. (NASDAQ:AMZN) stock has declined about 38% year to date, yet it remains one of the best bargain stocks due to the quality of its underlying business and sheer size.
Redburn analyst Alex Haissl initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) on June 29 with a Buy rating and a $270 price target, citing his view that Amazon Web Services is worth $3 trillion or “almost 3x Amazon’s current market cap”. Amazon Web Services’ cost and technology leadership generates market share gains in all areas, the analyst added.
Among the hedge funds tracked by Insider Monkey, 271 funds reported long positions in Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q1 2022, compared to 279 funds in the preceding quarter. Skye Global Management is one of the top shareholders of the company, with 740,500 shares worth $2.4 billion.
Here is what Weitz Investment Management Partners III Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Amazon.com’s (NASDAQ:AMZN) stock was down modestly in the quarter, but opportunistic purchases helped the position contribute positively to the Fund. Our index short positions against ETFs tracking market indexes provided helpful ballast during the first quarter drawdown but were otherwise detractors for the fiscal year. During the quarter, we covered roughly 20% of our S&P 500 short and 50% of our Nasdaq 100 short at progressively lower prices. Among our long equities, we added materially to high-conviction holdings Amazon.com.”
You can also take a look at Jim Cramer Recommends These 10 Stocks For Recession and Cliff Asness’ Short Position on AMC and His Top 10 Picks.
