In this article, we will take a look at the 5 cheap rising stocks to buy. To see more such companies, go directly to 10 Cheap Rising Stocks to Buy.
5. KB Home (NYSE:KBH)
Number of Hedge Fund Holders: 31
Homebuilding company KB Home (NYSE:KBH) shares have gained about 16% in the past month through April 4. The stock has a TTM PE ratio of 4.47.
In March, J.P. Morgan upgraded KB Home (NYSE:KBH) to Neutral from Underweight after the company’s strong Q1 report and solid 2023 guidance. JPMorgan’s analyst Michael Rehaut highlighted that KB Home (NYSE:KBH) bought back 2 million shares during the first quarter. The analyst believes KB Home (NYSE:KBH) could buy back more shares through the rest of the year. The analyst now expects KBH’s operating EPS for 2023 at $5.29, matching the average analyst estimate, compared with the $2.57 prior view.
KB Home (NYSE:KBH) expects its housing revenue in 2023 to be in the range of $5.20 billion to $5.90 billion. Average selling price in the period is expected to be in the range of $480,000 to $490,000.
4. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 34
French pharmaceutical company Sanofi (NASDAQ:SNY) is one of the undervalued rising stocks to buy. Sanofi (NASDAQ:SNY) has gained about 14% over the past 30 days through April 4.
In March, Sanofi (NASDAQ:SNY) and Regeneron Pharmaceuticals (NASDAQ:REGN) reported their drug Dupixent met the main goal and all key secondary goals of a phase 3 trial to treat adults who were current or former smokers with chronic obstructive pulmonary disease (COPD).
Recently, media reports suggested that Sanofi (NASDAQ:SNY) had begun the process to spin-off its consumer healthcare business in India.
As of the end of the last quarter of 2022, 34 hedge funds had stakes in Sanofi (NASDAQ:SNY). The net worth of these stakes was about $1.8 billion.
ClearBridge Investments made the following comment about Sanofi (NASDAQ:SNY) in its Q3 2022 investor letter:
“Health care proved to be the most challenging sector to navigate during the quarter, as several companies were subjected to elevated risk aversion due to possible litigation implications. Two of our top five largest individual detractors for the period were in the health care sector: Sanofi (NASDAQ:SNY) and Bayer (OTCPK:BAYZF). Sanofi, a French pharmaceutical and health care company, saw its share price fall after it was named as a co-defendant in a class action lawsuit alleging that Sanofi and other sellers of the heartburn medication Zantac failed to warn of the drug’s risk of containing a possible carcinogen.”
3. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 34
California-based IT company Super Micro Computer, Inc. (NASDAQ:SMCI) ranks 3rd in our list of cheap rising stocks to buy. Super Micro Computer, Inc. (NASDAQ:SMCI) has gained about 14% in the past month through April 4. Much of this rally is fueled by the latest AI boom and Super Micro Computer, Inc. (NASDAQ:SMCI)’s smart moves to cash the latest trend. In March, Super Micro Computer, Inc. (NASDAQ:SMCI) announced the launch of its AI development platform, powered by NVIDIA. Super Micro Computer, Inc. (NASDAQ:SMCI) said this platform is an application-optimized system for developing and running AI-based software.
In January, Super Micro Computer, Inc. (NASDAQ:SMCI) posted its fiscal Q2 results. Adjusted EPS in the quarter came in at $3.26 beating estimates by $0.23. Revenue in the quarter increased by 54% year over year to reach $1.8 billion, beating estimates by $20 million.
As of the end of the fourth quarter of 2022, 34 hedge funds tracked by Insider Monkey reported having stakes in Super Micro Computer, Inc. (NASDAQ:SMCI). The biggest stakeholder of Super Micro Computer, Inc. (NASDAQ:SMCI) was David Brown’s Hawk Ridge Management which owns a $93 million stake.
2. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 40
Sports goods retailer DICK’S Sporting Goods, Inc. (NYSE:DKS) shares have gained about 11% over the past 30 days through April 4. DICK’S Sporting Goods, Inc. (NYSE:DKS) in March posted stronger-than-expected Q4 results. DICK’S Sporting Goods, Inc. (NYSE:DKS) also upped its quarterly dividend by a whopping 105% when compared to the previous dividend.
As of the end of the fourth quarter of 2022, 40 hedge funds tracked by Insider Monkey had stakes in DICK’S Sporting Goods, Inc. (NYSE:DKS). The total value of these stakes was $1.5 billion. The biggest stakeholder of DICK’S Sporting Goods, Inc. (NYSE:DKS) was Stephen Mandel’s Lone Pine Capital which owns a $603 million stake.
1. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 52
Ranking 1st in our list of the cheap rising stocks is famous vaccine maker Moderna, Inc. (NASDAQ:MRNA). Over the past 30 days, the stock has gained about 10.7% through mid-day trading of April 4. Moderna, Inc. (NASDAQ:MRNA) is a highly popular stock among elite hedge funds. Insider Monkey data shows that 52 hedge funds had stakes in the company as of the end of the last quarter of 2022, up from 44 hedge funds in the previous quarter. The most significant stakeholder of Moderna, Inc. (NASDAQ:MRNA) during this period was Philippe Laffont’s Coatue Management which had a $1.1 billion stake in the company.
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