This article presents an overview of the 5 Best Fundamentally Strong Penny Stocks To Invest In. For a detailed overview of such stocks, read our article, 11 Best Fundamentally Strong Penny Stocks To Invest In.
5. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Investors: 17
Despite uncertainty and lack of stock price growth over the past few years, Nokia Oyj (NYSE:NOK) remains a fundamentally strong company with growth catalysts like 5G on the horizon.
In October Nokia Oyj (NYSE:NOK) maintained its FY23 outlook despite weak operator spending. Nokia Oyj (NYSE:NOK) also plans to cut 14,000 jobs.
Earlier this month Nokia Oyj (NYSE:NOK) said it plans to acquire Virginia-based Fenix Group to strengthen wireless offerings in the defense segment.
Artisan International Value Fund made the following comment about Nokia Oyj (NYSE:NOK) in its second quarter 2023 investor letter:
“Nokia Oyj (NYSE:NOK) is the world’s third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia’s market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter.”
4. B2Gold Corp (NYSE:BTG)
Number of Hedge Fund Investors: 19
Canadian mining company B2Gold Corp (NYSE:BTG) shares were spotted in 19 hedge fund portfolios as of the end of the third quarter of 2023. In November B2Gold Corp (NYSE:BTG) posted Q3 results. Adjusted EPS in the period came in at $0.05, missing estimates by $0.02. Revenue jumped about 21.7% year over year to $477.89 million, surpassing estimates by $12.55 million.
The biggest stakeholder of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34 million stake in B2Gold Corp (NYSE:BTG).
3. Destination XL Group Inc (NASDAQ:DXLG)
Number of Hedge Fund Investors: 21
Destination XL Group Inc (NASDAQ:DXLG) dominates the big and tall men’s clothing industry. In fiscal 2022, Destination XL Group Inc’s (NASDAQ:DXLG) gross margins came in at 49.9%, while adjusted EBITDA margin totaled 13.5%.
Out of the 910 hedge funds tracked by Insider Monkey, 21 hedge funds were long Destination XL Group Inc (NASDAQ:DXLG). The biggest stakeholder of Destination XL Group Inc (NASDAQ:DXLG) was Chuck Royce’s Royce & Associates which owns a $6.7 million stake in Destination XL Group Inc (NASDAQ:DXLG).
2. Baytex Energy Corp (NYSE:BTE)
Number of Hedge Fund Investors: 24
Canadian energy company Baytex Energy Corp (NYSE:BTE) earlier this month said its board approved a FY 2024 budget for $1.2 billion – $1.3 billion in exploration and development spending.
A total of 24 hedge funds tracked by Insider Monkey had stakes in Baytex Energy Corp (NYSE:BTE).
1. Tetra Technologies Inc (NYSE:TTI)
Number of Hedge Fund Investors: 25
Tetra Technologies Inc (NYSE:TTI) makes completion fluids and water management solutions for the energy industry.
A total of 25 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Tetra Technologies Inc (NYSE:TTI). The biggest stakeholder of Tetra Technologies Inc (NYSE:TTI) was Jeffrey Gendell’s Tontine Asset Management which owns a $32 million stake in Tetra Technologies Inc (NYSE:TTI).
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