In this article, we will look at the 5 best penny stocks to buy now. If you want to explore similar stocks, you can also take a look at 16 Best Penny Stocks To Buy Now.
5. Banco Santander, S.A. (NYSE:SAN)
Share Price as of October 21: $2.62
Number of Hedge Fund Holders: 15
Banco Santander, S.A. (NYSE:SAN) is a Spanish bank that offers a variety of banking products and services for individuals, businesses, and institutions. The bank has a strong presence in Europe, Latin America, and the United States. The bank is well–positioned to benefit from the growth of the Spanish economy and the continued expansion of its banking operations in Latin America and the United States and is ranked high among the best penny stocks to buy now.
Shares of Banco Santander, S.A. (NYSE:SAN) have been on a tear lately and the stock appears to be trading at bargain levels. As of October 21, Banco Santander, S.A. (NYSE:SAN) is trading at a PE multiple of 5x and is offering a forward dividend yield of 4.26%.
On September 27, Citi analyst Marta Romero upgraded Banco Santander, S.A. (NYSE:SAN) to Buy from Neutral and raised his price target on the shares to EUR 3.50 from EUR 3.20. On October 10, Credit Suisse analyst Pamela Zuluaga raised her price target on Banco Santander, S.A. (NYSE:SAN) to EUR 4.10 from EUR 4 and maintained an Outperform rating on the shares.
At the end of Q2 2022, 15 hedge funds were long Banco Santander, S.A. (NYSE:SAN) and held stakes worth $494.4 million in the company. Of those, Ariel Investments was the leading shareholder in Banco Santander, S.A. (NYSE:SAN) and held stakes worth $16.87 million in the company.
4. Ambev SA (NYSE:ABEV)
Share Price as of October 21: $2.94
Number of Hedge Fund Holders: 18
Ambev SA (NYSE:ABEV) is a leading global beverage company with a strong portfolio of well-known brands. The company has a strong history of growth and a track record for profitability. The company’s diversified business model which includes a wide range of products and geographical markets justifies its inclusion among the best penny stocks to buy now. Ambev SA (NYSE:ABEV) has a trailing twelve-month operating margin of 22.71% and an ROE of 16.76%. Moreover, the company has free cash flows of $13.59 billion.
On July 13, JPMorgan analyst Lucas Ferreira upgraded Ambev SA (NYSE:ABEV) to Overweight from Neutral and raised his price target on the shares to R$17 from R$15.
At the close of Q2 2022, 17 hedge funds were bullish on Ambev SA (NYSE:ABEV) and held stakes worth $185.73 million in the company. Of those, First Eagle Investment Management was the largest shareholder in the company.
Here is what Harding Loevner had to say about Ambev S.A. (NYSE:ABEV) in its second-quarter 2022 investor letter:
“This quarter, individual stock selection decisions led to a reduction in our overweight to Consumer Staples. We sold Ambev S.A. (NYSE:ABEV), Brazil’s dominant brewer with strong franchises across South and Central America, which we owned since 2003. Its profit margins have declined in recent years, and management’s strategy to restore them is to entice Brazilians (whose beer consumption is already high) to trade up to premium brands. Despite our high regard for Ambev’s management, we think this strategy will be unsuccessful so long as the Brazilian consumer is under financial pressure from inflation and high unemployment. Ambev is still a high-quality, growing company, but we think there are more appealing opportunities in Brazil and beyond.”
3. Genworth Financial, Inc. (NYSE:GNW)
Share Price as of October 21: $4,45
Number of Hedge Fund Holders: 22
Genworth Financial, Inc. (NYSE:GNW) is a leading insurance company with a long history of financial strength and stability. The company offers a wide range of insurance products, including life, long-term care, and mortgage insurance. Genworth Financial, Inc. (NYSE:GNW) is attractively priced and is offering good value for investors. As of October 21, the stock is trading at a PE multiple of 2x and is ranked high among the best penny stocks to buy now.
Genworth Financial, Inc. (NYSE:GNW) is profitable, cash-rich, and efficient at making profits for investors. The company has free cash flows of $545 million and has a trailing twelve-month operating margin of 16.87%. Moreover, Genworth Financial, Inc. (NYSE:GNW) has an ROE of 6.49%.
At the end of Q2 2022, Genworth Financial, Inc. (NYSE:GNW) was spotted on 22 hedge fund portfolios. The total stakes of these hedge funds amounted to $93.3 million. As of June 30, Shah Capital Management is the most prominent investor in Genworth Financial, Inc. (NYSE:GNW) and has stakes worth over $40 million in the company.
2. Qurate Retail, Inc. (NASDAQ:QRTEA)
Share Price as of October 21: $2.11
Number of Hedge Fund Holders: 24
Qurate Retail, Inc. (NASDAQ:QRTEA) is a leading American media conglomerate and one of the largest video commerce companies in the world. Qurate Retail, Inc. (NASDAQ:QRTEA) has free cash flows of $198 million and is trading at a PE ratio of 6.21, as of October 21. . The company has a healthy balance sheet and industry-leading position and is one of the best penny stocks to buy now.
Wall Street sees upside to Qurate Retail, Inc. (NASDAQ:QRTEA). On August 25, Citi analyst Jason Bazinet raised his price target on Qurate Retail, Inc. (NASDAQ:QRTEA) to $3.60 from $3 and maintained a Neutral rating on the shares.
At the close of Q2 2022, 24 hedge funds disclosed ownership of stakes in Qurate Retail, Inc. (NASDAQ:QRTEA). The collective stakes of these hedge funds amounted to $201.3 million in the company. As of June 30, FPR Partners is the leading shareholder in Qurate Retail, Inc. (NASDAQ:QRTEA) and has stakes worth more than $57 million in the company.
Here is what Weitz Investment Partners had to say about Qurate Retail, Inc. (NASDAQ:QRTEA) in its second-quarter 2022 investor letter:
“As we describe in our latest “Value Matters,” we believe these are characteristics that allow companies to “make their own breaks,” regardless of the near-term challenges we may face. During the quarter, we sold our remaining shares of Qurate Retail‘s (NASDAQ:QRTEA) common equity but maintain a position in the company’s 8% preferred shares.”
1. Two Harbors Investment Corp. (NYSE:TWO)
Share Price as of October 21: $3.23
Number of Hedge Fund Holders: 30
You can also take a look at 12 Best Income Stocks To Invest In and 12 Best Momentum Stocks To Buy.
