5 Best Penny Stocks To Buy Now

1. Genworth Financial Inc (NYSE:GNW)

With a total of 38 funds that held in aggregate $249.19 million worth of stock, Genworth Financial Inc (NYSE:GNW) is the most popular penny stock among hedge funds. The company saw an increase in bullish sentiment among the investors tracked by us, as three months earlier, there were 36 funds holding $164.49 million worth of shares. Among the top shareholders of Genworth Financial are Bill Miller’s Miller Value Partners and Himanshu H. Shah’s Shah Capital Management, which reported ownership of 10.34 million shares and 9.23 million shares, respectively, as of the end of September.

Bill Miller’s hedge fund is among the funds we track closely. They talked about GNW in their 2020 Q2 investor letter:

“Genworth Financial Inc. (GNW) declined -30.5% during the quarter as investors grew concerned on the potential closing of the acquisition by China Oceanwide. The company noted on their 1Q call that China Oceanwide’s financing plans were “progressing well,” but also noted that China Oceanwide was having discussions with third parties beyond their primary lender creating concern that the primary lender might not follow through on its commitment. Management noted that they expect the deal to close by June 30th, but noted that the buyer had allowed Genworth to explore alternatives it could pursue if the deal fell through. The company reported 1Q revenue of $1.84B below consensus of $1.99B with EPS of $0.07 below consensus of $0.27. After the quarter ended, the company announced another extension of the acquisition agreement with China Oceanwide. The new agreement extends the merger deadline to September 30th with an interim update on financing by August 31th. The company held a call to discuss the extension as well as “Plan B” options available to it if the deal fails.”

This concludes our list of the best penny stocks to buy according to hedge funds. Please also see 10 best large-cap stocks to buy now and 10 best value stocks to invest in.

Disclosure: None.