In this article, we discuss the 5 best multibagger stocks to buy now. If you want to read our discussion on the macroeconomic situation, go directly to 10 Best Multibagger Stocks to Buy Now.
5. TORM plc (NASDAQ:TRMD)
Number of Hedge Fund Holders: 12
1-Year Stock Price Performance: 178.27%
TORM plc (NASDAQ:TRMD) is a Danish carrier of energy products around the world with a fleet of over 80 vessels.
Experts believe that TORM plc (NASDAQ:TRMD) will execute strong investments if the free cash flow generation ability of the company improves further. In Q2 2022, the company was able to obtain charter equivalent rates that were twice higher than those obtained during the same period last year. TORM plc (NASDAQ:TRMD) is anticipating a further improvement in these rates during Q3 2022.
As a result of solid Q2 2022 results, TORM plc (NASDAQ:TRMD) was able to distribute $47 million to shareholders in the form of dividends and share buybacks. The stock boasts a healthy one-year forward dividend yield of 6.14% as of September 26. Experts anticipate the company to pay out 40% of its market value as dividends to shareholders for the next three years as the tanker spot rates are going through the roof, aiding the company in recuperating some of the losses incurred during the peak of the COVID-19 pandemic.
Millennium Management increased its stake in TORM plc (NASDAQ:TRMD) by over 2000% during Q2 2022.
4. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Number of Hedge Fund Holders: 25
1-Year Stock Price Performance: 179.58%
Alpha Metallurgical Resources, Inc. (NYSE:AMR) is a Bristol, Tennessee-based coal supplier with surface and underground coal mining facilities spread across Central and Northern Appalachia.
An update provided to investors on September 13 revealed that Alpha Metallurgical Resources, Inc. (NYSE:AMR) has committed to shipping 4.5 million tons of metallurgical coal to its customers in 2023. Furthermore, the entity intends to pursue the share buyback plan of $600 million. As of August 31, Alpha Metallurgical Resources, Inc. (NYSE:AMR) has already bought $326.2 million worth of stock under this plan.
Lance Vitanza at Cowen maintained an Outperform rating on Alpha Metallurgical Resources, Inc. (NYSE:AMR) stock and increased the target price from $191 to $225 in an investor update provided on September 15. The analyst has increased the target price to reflect the improvement in the price of metallurgic coal. Vitanza highlighted that the discount between the share price of Alpha Metallurgical Resources, Inc. (NYSE:AMR) and its intrinsic value had increased significantly, making it one of the best multibagger stocks to buy now.
3. Target Hospitality Corp. (NASDAQ:TH)
Number of Hedge Fund Holders: 14
1-Year Stock Price Performance: 211.96%
Target Hospitality Corp. (NASDAQ:TH) is the Woodlands, Texas-based provider of housing communities to the energy infrastructure sector, oil and gas sector, and the public sector. The company builds, owns, and operates these housing communities and uses them as a platform to provide specialty rental and hospitality services to these sectors.
Target Hospitality Corp. (NASDAQ:TH) heavily relies on governmental contracts as they contributed 68% to the company’s top line during Q2 2022. Target Hospitality Corp. (NASDAQ:TH) has also agreed on a contract extension and expansion for the operations of West Texas government facilities till May 2023. However, experts believe that the contract will run past this date as the US government is reimbursing $194 million of capital expenditure incurred by Target Hospitality Corp. (NASDAQ:TH) in real-time.
As of Q2 2022, Target Hospitality Corp. (NASDAQ:TH) was held by 14 hedge funds.
2. Permian Basin Royalty Trust (NYSE:PBT)
Number of Hedge Fund Holders: 3
1-Year Stock Price Performance: 212.31%
Permian Basin Royalty Trust (NYSE:PBT) is a Dallas, Texas-based company that has royalty interests in oil and gas properties in Texas. The company is a pure upstream entity that has a fixed number of assets in its portfolio.
Permian Basin Royalty Trust (NYSE:PBT) is set to become a direct beneficiary of rising crude oil and natural gas prices. The conflict between Russia and Ukraine has placed a question mark on over 10% of global crude oil production and 30% of global natural gas production coming out of Russia. Crude oil prices have recently rallied to 13-year highs at the peak of this conflict. On the other hand, leading crude oil producers are also not interested in increasing production to make up for the decline in production from Russia. The rise in crude oil and natural gas prices in the last year has increased the proven reserves of Permian Basin Royalty Trust (NYSE:PBT) by over 50%. Further sanctions and uncertainty in the crude oil and natural gas industry will play in favor of Permian Basin Royalty Trust (NYSE:PBT).
Horizon Asset Management was the leading hedge fund investor in Permian Basin Royalty Trust (NYSE:PBT) during Q2 2022.
1. Sigma Lithium Corporation (NASDAQ:SGML)
Number of Hedge Fund Holders: 3
1-Year Stock Price Performance: 219.15%
Sigma Lithium Corporation (NASDAQ:SGML) is a Vancouver, Canada-based company that is focused on developing the biggest hard rock lithium deposits in North and South America and becoming an integral part of the global supply chain of electric vehicles.
Sigma Lithium Corporation (NASDAQ:SGML) intends to produce 220,000 tons of battery-grade lithium annually during the first phase of production. The company intends to remain one of the lowest-cost lithium producers in the world. During the second phase, Sigma Lithium Corporation (NASDAQ:SGML) plans to double the production of battery-grade lithium to 440,000 tons. The company can also play a pivotal role for leading EV-maker Tesla, Inc. (NASDAQ:TSLA) as it is planning to set up a lithium refining facility in Texas. Back in 2019, Sigma Lithium Corporation (NASDAQ:SGML) held discussions with the Austin, Texas-based EV giant about supplying lithium. The company’s future prospects make it one of the best multibagger stocks to buy now.
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