In this article, we discuss 5 best value stocks to buy in 2022 according to Richard Pzena. If you want to see more value stocks from his 2022 portfolio, click 10 Best Value Stocks to Buy in 2022 According to Richard Pzena.
5. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 35
P/E Ratio as of May 20: 5.08
Hewlett Packard Enterprise Company (NYSE:HPE) was founded in 1939 and is headquartered in Houston, Texas. The company offers multi-workload computing and workload-optimized servers to customers in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Richard Pzena invested in Hewlett Packard Enterprise Company (NYSE:HPE) back in the fourth quarter of 2015, and in Q1 2022, he held a stake in the company worth about $628 million.
On May 20, BofA analyst Wamsi Mohan downgraded Hewlett Packard Enterprise Company (NYSE:HPE) to Neutral from Buy, slashing the price target to $16 from $19, as he expects negative estimate revisions and is worried about order deceleration due to the tight supply chain situation given recent China lockdowns. He sees risk from an economic slowdown, component shortages, and high backlog that is cancelable.
Among the hedge funds tracked by Insider Monkey, 35 funds were bullish on Hewlett Packard Enterprise Company (NYSE:HPE) at the end of December 2021, up from 33 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a prominent shareholder of the company, with 5.16 million shares worth $86.2 million.
4. PVH Corp. (NYSE:PVH)
Number of Hedge Fund Holders: 38
P/E Ratio as of May 20: 4.88
PVH Corp. (NYSE:PVH) is a New York-based apparel company that operates through six segments – Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail.
Securities filings for Q1 2022 reveal that Richard Pzena’s Pzena Investment Management owned 7.8 million shares of PVH Corp. (NYSE:PVH), worth $600.3 million, representing 2.26% of the total 13F securities. PVH Corp. (NYSE:PVH) was added to Richard Pzena’s portfolio in the first quarter of 2019.
On April 18, Credit Suisse analyst Michael Binetti raised the price target on PVH Corp. (NYSE:PVH) to $120 from $112 and reiterated an Outperform rating on the shares. The analyst noted that PVH Corp. (NYSE:PVH) hosted its first Analyst Day in a decade, targeting earnings per share ranging between $21 to $23 in 2025.
According to Insider Monkey’s fourth quarter database, 38 hedge funds were bullish on PVH Corp. (NYSE:PVH), holding collective stakes worth over $2 billion. John Armitage’s Egerton Capital Limited held a significant stake in the company, with 1.80 million shares worth $138.6 million.
3. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders: 26
P/E Ratio as of May 20: 11.58
Newell Brands Inc. (NASDAQ:NWL) is one of the top value stocks in Richard Pzena’s portfolio, with a price to earnings ratio of 11.58. Newell Brands Inc. (NASDAQ:NWL) is a producer of consumer and commercial products, operating through five segments – Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation.
Securities filings for Q1 2022 revealed that Richard Pzena’s hedge fund held 36.25 million shares of Newell Brands Inc. (NASDAQ:NWL), worth over $776 million, representing 2.93% of the total 13F portfolio. Richard Pzena initially invested in the company back in Q2 2018.
On May 5, Newell Brands Inc. (NASDAQ:NWL) declared a quarterly dividend of $0.23 per share, in line with previous. The dividend is payable on June 15, to shareholders of the company as of May 31. Newell Brands Inc. (NASDAQ:NWL) on May 20 delivered a dividend yield of 4.73%.
JPMorgan analyst Andrea Teixeira on March 30 maintained an Overweight rating on Newell Brands Inc. (NASDAQ:NWL) and lowered the price target on the shares to $26 from $29. With the ongoing Russia/Ukraine war and its impact on commodities costs, transportation, and currency, the analyst slashed estimates for most of the companies in the beverages and personal care space.
In Q1 2022, billionaire Carl Icahn’s Icahn Capital LP disclosed a prominent stake in Newell Brands Inc. (NASDAQ:NWL), with 33 million shares worth $708 million. Overall, 26 hedge funds were bullish on Newell Brands Inc. (NASDAQ:NWL) in Q4 2021, with collective stakes worth $1.74 billion.
2. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 28
P/E Ratio as of May 20: 2.78
NRG Energy, Inc. (NYSE:NRG) is an integrated power company in the United States, serving residential, commercial, industrial, and wholesale customers. Richard Pzena’s Pzena Investment Management added NRG Energy, Inc. (NYSE:NRG) to its portfolio in Q2 2020. In the first quarter of 2022, Pzena elevated his stake in NRG Energy, Inc. (NYSE:NRG) by 9%, holding 18.65 million shares worth $715.5 million, representing 2.70% of the total 13F portfolio.
NRG Energy, Inc. (NYSE:NRG) declared on April 20 a $0.35 per share quarterly dividend, in line with previous. The dividend was paid on May 16, to shareholders of the company as of May 2. NRG Energy, Inc. (NYSE:NRG)’s dividend yield on May 20 stood at 3.06%.
On May 6, NRG Energy, Inc. (NYSE:NRG) reported its Q1 results, posting GAAP earnings per share of $7.17, beating market estimates by $6.55. The revenue of $7.90 billion also outperformed analysts’ estimates by $3.44 billion.
BofA analyst Julien Dumoulin-Smith on April 21 downgraded NRG Energy, Inc. (NYSE:NRG) to Neutral from Buy with a price target of $43, down from $47, citing increasing concerns about NRG Energy, Inc. (NYSE:NRG) being at greater risk given exposure to elevated gas prices.
According to Insider Monkey’s Q4 database, NRG Energy, Inc. (NYSE:NRG) was part of 28 public hedge fund portfolios, compared to 34 funds in the prior quarter. Andrew Wellington and Jeff Keswin’s Lyrical Asset Management disclosed a significant stake in the company in the first quarter of 2022, with 5.6 million shares worth over $217 million.
1. Equitable Holdings, Inc. (NYSE:EQH)
Number of Hedge Fund Holders: 45
P/E Ratio as of May 20: 7.29
Equitable Holdings, Inc. (NYSE:EQH) is a diversified financial services company operating worldwide, with segments including Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. Richard Pzena’s hedge fund held about 22 million shares of Equitable Holdings, Inc. (NYSE:EQH), worth $677.75 million, representing 2.56% of the total 13F portfolio.
On May 9, Equitable Holdings, Inc. (NYSE:EQH) reported its Q1 results, posting earnings per share of $1.36, missing market estimates by $0.15. The first quarter revenue of $3.94 billion grew 13.56% year-over-year, outperforming Street estimates by $334.18 million.
Equitable Holdings, Inc. (NYSE:EQH) on May 20 declared a $0.20 per share quarterly dividend, an 11.1% increase from its prior dividend of $0.18. The dividend is payable on June 6, to shareholders of record on May 30. Equitable Holdings, Inc. (NYSE:EQH)’s dividend yield on May 20 came in at 2.59%.
Barclays analyst Tracy Benguigui on May 12 reiterated an Overweight on Equitable Holdings, Inc. (NYSE:EQH) and lowered the price target on the stock to $37 from $43. The company’s Q1 earnings “strain owed to a weaker equity market is tempered by strong sales and positive net flows”, the analyst told investors.
According to Insider Monkey’s Q4 data, 45 hedge funds were bullish on Equitable Holdings, Inc. (NYSE:EQH), with collective stakes worth $1.6 billion, compared to 46 funds in the earlier quarter, holding stakes in the company valued at $1.70 billion.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital and 10 Best Stocks to Buy Now According to Billionaire David Harding.
