5 Best Stocks to Buy for Medium Term

In this article, we will be taking a look at the 5 best stocks to buy for medium term. To read our detailed analysis of the current stock market dynamics, you can go directly to see the 10 Best Stocks to Buy for Medium Term.

5. Gray Television, Inc. (NYSE:GTN)

Dividend Yield as of February 27: 2.62%

Number of Hedge Fund Holders: 23

Gray Television, Inc. (NYSE:GTN) is a communication services company based in Atlanta, Georgia. The company owns and operates TV stations and digital assets in the US.

The stock has a payout ratio of 7.37%. The company reported revenues of $1.07 billion in the fourth quarter, demonstrating a revenue growth rate of 48.68% year-over-year. Gray Television, Inc. (NYSE:GTN) was trading at $12.20 on February 27. The average price target on the shares is $16.2, according to TipRanks. Based on this price target, the stock has an upside potential of 80.6%.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 23 hedge funds were long Gray Television, Inc. (NYSE:GTN). Their total stake value was $161 million.

4. Bread Financial Holdings Inc. (NYSE:BFH)

Dividend Yield as of February 27: 2.12%

Number of Hedge Fund Holders: 23

Bread Financial Holdings Inc. (NYSE:BFH) is a consumer finance company based in Columbus, Ohio. The company offers tech-forward payment and lending solutions.

An Overweight rating was reiterated on Bread Financial Holdings Inc. (NYSE:BFH) shares on January 26 by Stephens analyst Vincent Caintic. The analyst also holds a $64 price target on the stock.

Bread Financial Holdings Inc. (NYSE:BFH) has raised its dividend yield for a year now. In the fourth quarter, the company’s revenue came in at $1.03 billion, representing a revenue growth rate of 10.01% year-over-year.

Our hedge fund data for the fourth quarter shows 23 funds long Bread Financial Holdings Inc. (NYSE:BFH), with a total stake value of $238 million.

3. Avnet, Inc. (NYSE:AVT)

Dividend Yield as of February 27: 2.54%

Number of Hedge Fund Holders: 31

Avnet, Inc. (NYSE:AVT) is an information technology company based in Phoenix, Arizona. The company markets, sells, and distributes electronic components.

Jim Suva at Citigroup holds a Neutral rating on Avnet, Inc. (NYSE:AVT) shares as of February 2. The analyst also raised his price target on the stock from $45 to $50.

Avnet, Inc. (NYSE:AVT) is a strong dividend stock that has raised its yield for the past eight years. The company has a low payout ratio of about 13.38%. In the fiscal second quarter of 2023, the company generated $6.72 billion in revenue, representing a revenue growth rate of 14.53% year-over-year.

A total of 31 hedge funds were long Avnet, Inc. (NYSE:AVT) in the fourth quarter. Their total stake value was $688 million.

2. CONSOL Energy Inc. (NYSE:CEIX)

Dividend Yield as of February 27: 8.06%

Number of Hedge Fund Holders: 32

CONSOL Energy Inc. (NYSE:CEIX) is an energy company based in Canonsburg, Pennsylvania. It produces and exports bituminous coal in the US.

Riley’s Lucas Pipes reiterated a Buy rating on CONSOL Energy Inc. (NYSE:CEIX) shares on January 17 and placed an $84 price target on the stock.

CONSOL Energy Inc. (NYSE:CEIX) has a dividend payout ratio of 16.21%. The company generated revenues of $637.15 million in the fourth quarter, representing a revenue growth rate of 32.57% year-over-year. As of this February, company management has also paid off almost all of the company’s debt, and has committed to returning about 35%-50% of its free cash flow to shareholders.

There were 32 hedge funds long CONSOL Energy Inc. (NYSE:CEIX) in the fourth quarter, with a total stake value of $298 million.

Greenlight Capital, an investment management company, mentioned CONSOL Energy Inc. (NYSE:CEIX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“As CONSOL Energy Inc. (NYSE:CEIX) rode a surge in coal prices, the shares soared from $22.71 to $65.00 and the company paid $2.05 per share in dividends. In 2022, part of the higher coal prices were absorbed by hedges and forward contracts at what turned out to be below-market prices. Even so, we believe the company ended the year with no net debt. From here, with the below market contracts mostly behind, we expect the higher prices to translate directly into much higher earnings, with most of the free cash flow to be returned to shareholders. Much of the pricing in 2023 and some of the pricing in 2024 is locked in. As a result, we believe that the company will generate free cash flow over the next two years equal to its current market capitalization. While thermal coal will probably never be cool to own, we believe the returns for owning CEIX should continue to be hot.”

1. Discover Financial Services (NYSE:DFS)

Dividend Yield as of February 27: 2.14%

Number of Hedge Fund Holders: 52

Discover Financial Services (NYSE:DFS) is a consumer finance company based in Riverwoods, Illinois. It provides digital banking products and services, among more.

Moshe Orenbuch at Credit Suisse holds an Outperform rating on Discover Financial Services (NYSE:DFS) shares as of January 20, alongside a $120 price target.

After continuously raising its dividend for the past 12 years, Discover Financial Services (NYSE:DFS) now has a payout ratio of 14.85%. In the fourth quarter, the company’s revenue was $3.73 billion. This represented a revenue growth rate of 27.11% year-over-year.

Discover Financial Services (NYSE:DFS) was found among the 13F holdings of 52 hedge funds in the fourth quarter. Their total stake value was $1.3 billion.

See also 10 Best March Dividend Stocks to Buy and 10 Dividend Stocks that George Soros Owns.