In this article, we discuss the 5 best value stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Value Stocks to Invest In.
5. MPLX LP (NYSE: MPLX)
Number of Hedge Fund Holders: 8
PE Ratio: 11.18
MPLX LP (NYSE: MPLX) is an Ohio-based energy infrastructure and logistics firm. It is placed fifth on our list of 15 best value stocks to invest in. The company’s shares have returned 52% to investors in the past twelve months. In earnings results for the first quarter, posted on May 4, the firm reported earnings per share of $0.68, beating market predictions by $0.06. The revenue over the period was $2.3 billion, up 135% compared to the revenue over the same period last year and beating market estimates by $200 million.
On July 26, investment advisory Citi reiterated a Buy rating on MPLX LP (NYSE: MPLX) stock and raised the price target to $32 from $27. Timm Schneider, an analyst at the firm, noted that the updated valuation reflected commodity price data.
At the end of the first quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $136 million in MPLX LP (NYSE: MPLX), down from 13 the preceding quarter worth $142 million.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and MPLX LP (NYSE: MPLX) was one of them. Here is what the fund said:
“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”
4. Dow Inc. (NYSE: DOW)
Number of Hedge Fund Holders: 41
PE Ratio: 10.99
Dow Inc. (NYSE: DOW) is ranked fourth on our list of 15 best value stocks to invest in. The stock has returned 36% to investors over the past year. The firm markets materials solutions and is based in Michigan. It was founded in 2018. The firm posted earnings results for the second quarter on July 22, reporting earnings per share of $2.72, beating market estimates by $0.29. The revenue over the period was $13.8 billion, up 36% year-on-year and beating market predictions by $1.1 billion.
On June 8, investment advisory Argus maintained a Buy rating on Dow Inc. (NYSE: DOW) stock and raised the price target to $78 from $69, noting that the firm was expected to benefit from the increased demand and stronger pricing for chemicals in North America.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $717 million in Dow Inc. (NYSE: DOW), down from 47 the preceding quarter worth $711 million.
In its Q1 2020 investor letter, Evermore Global Advisors, an asset management firm, highlighted a few stocks and Dow Inc. (NYSE: DOW) was one of them. Here is what the fund said:
“With respect to Corteva, Dow and DuPont, COVID-19 related shutdowns that started in China painted an ominous picture for the global macro landscape, and we exited our positions in these three companies that comprised the former DowDupont (DWDP) beginning in February. Additionally, numerous channel checks we performed indicated that various supply chains were being disrupted and stressed, a poor sign for three companies that are very global in nature.
In retrospect, we remain generally happy with managements execution of many of the fundamental tenets of our original investment thesis in DWDP – the separations and spins were completed on time, the restructuring programs were well executed, and capital allocation across the three companies is much more streamlined and shareholder friendly today than in the past. Unfortunately, big picture issues that started with the U.S. – China trade war and remain today with the global collapse in macroeconomic activity has severely impacted each of the former DWDP companies. We will continue to remain close to each company and could reenter on or more of the aforementioned positions should an opportunity present itself.
We decided to move on from our position in Kraton, a specialty chemicals company, for many of the same reasons as discussed above for Corteva, Dow and DuPont. The bottom line is the prospects of the company are tied to global gross domestic product for which we have limited visibility today.”
3. The Progressive Corporation (NYSE: PGR)
Number of Hedge Fund Holders: 45
PE Ratio: 10.20
The Progressive Corporation (NYSE: PGR) is an insurance holding firm headquartered in Ohio. It is placed third on our list of 15 best value stocks to invest in. The company’s shares have returned 8% to investors over the past twelve months. The company recently missed market estimates on earnings per share and revenue for the second quarter. However, on June 1, the firm announced that it had completed the purchase of Protective Insurance in a deal worth $338 million, outlining further growth plans.
On July 16, investment advisory Barclays maintained an Underweight rating on The Progressive Corporation (NYSE: PGR) stock with a price target of $84. The ratings update was issued following earnings results posted by the firm for the second quarter.
At the end of the first quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in The Progressive Corporation (NYSE: PGR), down from 48 in the previous quarter worth $1.7 billion.
In its Q1 2021 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and The Progressive Corporation (NYSE: PGR) was one of them. Here is what the fund said:
“Progressive continues to report double-digit growth in policies in force (PIF), having added nearly 750,000 personal automobile and commercial PIFs in the first quarter of 2021, compared to the Company’s closest competitor, GEICO (a subsidiary of Berkshire Hathaway), which added just 124,000 PIFs. However, Progressive’s loss ratio has been elevated over the past few months due to a large, unseasonal ice storm that affected the southwestern U.S. We expect the financial effects of this to be short-lived and that the Company’s core earnings power should continue compounding in-line with its growth in PIFs. Traditional financial businesses are historically and relatively out of favor, if only evidenced by their slim weightings in major U.S. benchmarks, but there are pockets of exceptional growth businesses, such as Progressive, where we are happy to be contrarians.”
2. HP Inc. (NYSE: HPQ)
Number of Hedge Fund Holders: 43
PE Ratio: 10.13
HP Inc. (NYSE: HPQ) stock has offered investors returns exceeding 58% over the course of the past twelve months. It is ranked second on our list of 15 best value stocks to invest in. The company makes and sells personal computing devices and is based in California. It was founded in 1939 and has a market cap of over $33 billion. It posted more than $56 billion in revenue last year. The firm declared a quarterly dividend of $0.1938 per share on June 23, in line with previous and with a forward yield of 2.65%.
On July 2, investment advisory Bernstein maintained a Market Perform rating on HP Inc. (NYSE: HPQ) stock with a price target of $32, highlighting that the firm could purchase Xerox in the coming months despite having a bid shot down earlier.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in HP Inc. (NYSE: HPQ) with 16.8 million shares worth more than $533 million.
1. Cigna Corporation (NYSE: CI)
Number of Hedge Fund Holders: 53
PE Ratio: 10.01
Cigna Corporation (NYSE: CI) is placed first on our list of 15 best value stocks to invest in. The company’s shares have offered investors returns exceeding 32% over the course of the past year. The company markets insurance products and is based in Connecticut. It was founded in 1981. In earnings results for the first quarter, posted in early May, the company reported earnings per share of $4.73, beating market predictions by $0.35. The revenue over the period was $41 billion, up 6% year-on-year.
On May 18, investment advisory Wells Fargo initiated coverage of Cigna Corporation (NYSE: CI) stock with an Equal Weight rating and a price target of $284, noting that the firm offered an attractive total return at a discounted multiple.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Glenview Capital is a leading shareholder in Cigna Corporation (NYSE: CI) with 1.8 million shares worth more than $449 million.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Cigna Corporation (NYSE: CI) was one of them. Here is what the fund said:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
You can also take a peek at 10 Best Dividend Stocks to Buy According to Billionaire Michael Price and 10 Best High Yield Dividend Stocks Under $50.
