In this article, we will look at 5 best stocks under $50 according to billionaire Ray Dalio. If you want to read about Ray Dalio’s investment philosophy and his hedge fund’s returns, you can go directly to 10 Best Stocks Under $50 According to Billionaire Ray Dalio.
5. Comcast Corporation (NASDAQ:CMCSA)
Bridgewater Associates’ Stake Value: $58,867,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.23%
Share Price as of June 27: $39.75
Number of Hedge Fund Holders: 78
In the first quarter of 2022, Bridgewater Associates increased its stakes in Comcast Corporation (NASDAQ:CMCSA) by 442%. As of March 31, the fund’s stakes in the communication services giant are valued at $58.86 million, which covers 0.23% of its 13F portfolio.
As of June 27, Comcast Corporation (NASDAQ:CMCSA) has a PE ratio of 12.78, a forward dividend yield of 2.81%, and is currently trading at $39.75. These features make it one of the best undervalued and dividend-paying stocks under $50 according to billionaire investor Ray Dalio.
As of June 2, Wolfe Research analyst Peter Supino has a Peer Perform rating and a $50 price target on Comcast Corporation (NASDAQ:CMCSA). The analyst noted that Comcast Corporation (NASDAQ:CMCSA) is a bargain right now and is also demonstrating resilience to high prices and market volatility. However, the analyst sees declining margin growth in the second half of 2022 and into 2023 due to increasing competition in the broadband and advertising market.
At the close of the first quarter of 2022, 78 hedge funds disclosed ownership of stakes in Comcast Corporation (NASDAQ:CMCSA). The total stakes of these funds amounted to $7.12 billion.
ClearBridge Investments shared its views on Comcast Corporation (NASDAQ:CMCSA) in its Q4 2021 investor letter. Here is what experts at ClearBridge think about the stock:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
4. The Kraft Heinz Company (NASDAQ:KHC)
Bridgewater Associates’ Stake Value: $88,878,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.35%
Share Price as of June 27: $38.66
Number of Hedge Fund Holders: 35
On June 22, BMO Capital analyst Kenneth Zaslow upgraded The Kraft Heinz Company (NASDAQ:KHC) to Outperform from Market Perform and reiterated his price target of $46, implying a 25% upside from current levels.
As of June 27, The Kraft Heinz Company (NASDAQ:KHC) has gained 6.97% year-to-date and is offering a forward dividend of 4.17%. The stock is trading at $38.66 per share and is, therefore, one of the best dividend-paying stocks to buy for less than $50 according to billionaire Ray Dalio.
At the close of Q1 2022, 35 hedge funds were long The Kraft Heinz Company (NASDAQ:KHC) with stakes worth $13.44 billion. This is compared to 39 positions in the preceding quarter with stakes worth $12.21 billion.
In the first quarter of 2022, Bridgewater Associates increased its stakes in The Kraft Heinz Company (NASDAQ:KHC) by 48%. As of March 31, Ray Dalio’s hedge fund’s stakes are valued at $88.87 million in the company, which covers 0.35% of its 13F portfolio.
3. The Kroger Co. (NYSE:KR)
Bridgewater Associates’ Stake Value: $104,465,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.42%
Share Price as of June 27: $48.75
Number of Hedge Fund Holders: 45
On June 16, The Kroger Co. (NYSE:KR) announced earnings for the first quarter of fiscal year 2023. The company reported earnings per share of $1.45 and beat estimates by $0.17. Moreover, the company’s revenue for the quarter amounted to $44.60 billion, up 8% year over year, and outperformed Wall Street consensus by $1.54 billion.
On June 23, The Kroger Co. (NYSE:KR) declared a quarterly cash dividend of $0.26 per share of the company’s common stock. This dividend marks an increase of 23.8% over the company’s prior dividend of $0.21. The dividend is payable on September 1, to shareholders of record on August 15.
As of June 27, The Kroger Co. (NYSE:KR) has gained 23.73% over the past twelve months and is offering a dividend yield of 1.74%. Bridgewater Associates is bullish on the stock and in the first quarter of 2022, the hedge fund raised its stakes in the Kroger Co. (NYSE:KR) by 33%, bringing them to $104.46 million. The Kroger Co. (NYSE:KR) is currently trading at $48.75.
On June 21, MKM Partners analyst Bill Kirk raised his price target on The Kroger Co. (NYSE:KR) to $55 from $48 and reiterated a Neutral rating on the shares.
At the close of the first quarter of 2022, 45 hedge funds disclosed ownership of stakes in The Kroger Co. (NYSE:KR). The total stakes of these hedge funds amounted to $5.16 billion, up from $4.15 billion in the prior quarter with 41 positions.
2. NIO Inc. (NYSE:NIO)
Bridgewater Associates’ Stake Value: $112,060,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.45%
Share Price as of June 27: $22.95
Number of Hedge Fund Holders: 26
On June 9, NIO Inc. (NYSE:NIO) announced earnings for the first quarter of fiscal year 2022. The company’s revenue for the quarter came in at $1.56 billion, up 24.2% year over year, and beat expectations by $80 million. The Chinese EV manufacturer also reported that it delivered over 25,700 vehicles in Q1 2022, which included roughly 4,300 ES8s, 13,600 ES6s, 7,640 EC6s, and 163 ET7s. The company’s vehicle deliveries grew by 28.5% year over year and 2.9% quarter-on-quarter. NIO Inc. (NYSE:NIO) also guided to increased vehicle deliveries in the second quarter and said that it expects to deliver up to 25,000 vehicles in Q2 2022, which implies a 14.2% year-over-year increase.
On June 21, Citi analyst Jeff Chung cut his price target on NIO Inc. (NYSE:NIO) to $41.10 from $87 but maintained a Buy rating on the shares. The analyst views total returns of 98% from NIO Inc. (NYSE:NIO) shares regardless of his lowered price target on the stock.
In the first quarter of 2022, Bridgewater Associates raised its stakes in NIO Inc. (NYSE:NIO) by 74%, bringing them to $112.06 million.
At the end of Q1 2022, 26 hedge funds were long NIO Inc. (NYSE:NIO) with stakes worth $716.09 million. This is compared to 30 hedge funds in the previous quarter with stakes worth $813.67 million.
Here is what Horos Asset Management had to say about NIO Inc. (NYSE:NIO) in its recently published first-quarter 2022 investor letter:
“At the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information. While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. Other entities, such as the electric vehicle manufacturer Nio, have just started trading on this stock market.”
1. Boston Scientific Corporation (NYSE:BSX)
Bridgewater Associates’ Stake Value: $117,192,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.47%
Share Price as of June 27: $37.82
Number of Hedge Fund Holders: 55
Billionaire investor Ray Dalio is bullish on Boston Scientific Corporation (NYSE:BSX). In the first quarter of 2022, Ray Dalio’s hedge fund increased its stakes in the med-tech company by 45%. As of March 31, Bridgewater Associates owns 2.64 million shares of the company which amounts to a stake of $117.19 million. The investment covers 0.47% of Ray Dalio’s 13F portfolio.
Analysts are also bullish on Boston Scientific Corporation (NYSE:BSX). On June 15, BofA analysts named Boston Scientific Corporation (NYSE:BSX) among its “Best Ideas” from the large-cap med-tech sector. BofA analysts have a $47 price target and a Buy rating on Boston Scientific Corporation (NYSE:BSX). Moreover, on June 24, BTIG analyst Marie Thibault lowered her price target on Boston Scientific Corporation (NYSE:BSX) to $45 from $52 but maintained a Buy rating on the shares.
At the close of Q1 2022, 55 hedge funds were long Boston Scientific Corporation (NYSE:BSX) with stakes worth $4.67 billion. This is compared to 46 positions in the preceding quarter with stakes worth $3.96 billion. The hedge fund sentiment for the stock is positive.
You can also take a look at 10 Best Stocks to Buy According to Billionaire Ray Dalio and 10 Best High Yield Dividend Stocks Under $50.
