5 Cheapest Penny Stocks According to Analysts

In this article, we will discuss the 5 cheapest penny stocks to buy now according to analysts. If you want to explore similar stocks, you can go to 12 Cheapest Penny Stocks According to Analysts.

5. Lloyds Banking Group PLC (NYSE:LYG)

PE Ratio (TTM) as of March 9: 7.06

Average Upside Potential as of March 9: 24.81%

Number of Hedge Fund Holders: 9

Lloyds Banking Group PLC (NYSE:LYG) provides a variety of banking and financial services in the United Kingdom. The company has three business divisions: Retail, Commercial Banking, and Insurance, Pensions, & Investments. As of March 9, the stock has gained 7.83% over the past 6 months and is trading at a PE multiple of 7x.

On February 27, JPMorgan analyst Raul Sinha raised his price target on Lloyds Banking Group PLC (NYSE:LYG) to 61 GBP from 58 GBP and maintained a Neutral rating on the shares. The stock has received coverage from 22 Wall Street analysts, of which 13 recommend to Buy the stock. The stock is placed fifth among the cheapest penny stocks to buy now.

At the close of the fourth quarter of 2022, 9 hedge funds were long Lloyds Banking Group PLC (NYSE:LYG) and disclosed positions worth $100.8 million in the company. This is compared to 8 hedge funds in the preceding quarter with stakes worth $57.7 million. The hedge fund sentiment for the stock is positive.

As of December 31, Ken Griffin’s Citadel Investment Group is the leading shareholder in Lloyds Banking Group PLC (NYSE:LYG) and has disclosed a position worth $18.3 million in the company.

4. The Lion Electric Company (NYSE:LEV)

PE Ratio (TTM) as of March 9: 6.90

Average Upside Potential as of March 9: 97.67%

Number of Hedge Fund Holders: 15

The Lion Electric Company (NYSE:LEV) is a Canadian designer and manufacturer commercial electric vehicles. The company specializes in all-electric medium and heavy-duty urban vehicles and also provides battery systems, chassis, bus bodies, and truck cabins. As of March 9, The Lion Electric Company (NYSE:LEV) has a TTM PE ratio of 6.90 and is one of the cheapest penny stocks to buy now.

Based on analyst ratings given by 8 Wall Street analysts, The Lion Electric Company (NYSE:LEV) has a consensus Buy rating and an average price target of $4.25, which represents an upside of 97.67% from its closing price on March 9.

This February, Barclays analyst Dan Levy took coverage of The Lion Electric Company (NYSE:LEV) with an Equal Weight rating and a $3 price target.

At the end of Q4 2022, 15 hedge funds were eager on The Lion Electric Company (NYSE:LEV) and held collective stakes worth $11.2 million in the company. Of those, Steven Cohen’s Point72 Asset Management is the largest shareholder in the company and has a position worth $2.58 million.

3. Banco Santander, S.A. (NYSE:SAN)

PE Ratio (TTM) as of March 9: 6.82

Average Upside Potential as of March 9: 25.41%

Number of Hedge Fund Holders: 17

Banco Santander, S.A. (NYSE:SAN) is a large Spanish bank that provides retail and commercial banking products and services worldwide. As of March 9, the stock has returned 41.48% to investors over the past 6 months and is trading at a PE multiple of 6x.

Banco Santander, S.A. (NYSE:SAN) has received coverage from 23 Wall Street analysts. The stock has a consensus Buy rating and has received 15 Buy ratings and 7 Hold ratings. The stock has an average price target of $4.88, which represents an upside of 25.41% from current levels.

This March, Credit Suisse analyst Pamela Zuluaga raised her price target on Banco Santander, S.A. (NYSE:SAN) to EUR 4.70 from EUR 4.50 and maintained an Outperform rating on the shares.

Banco Santander, S.A. (NYSE:SAN) was a part of 17 investors’ portfolios at the end of Q4 2022. These funds held collective stakes worth $525.8 million in the company, up from $398.9 million in the preceding quarter with 12 positions. The hedge fund sentiment for the stock is positive.

As of December 31, Ariel Investments is the top stockholder in Banco Santander, S.A. (NYSE:SAN) and has a stake worth $16.1 million in the company.

2. Nokia Oyj (NYSE:NOK)

PE Ratio (TTM) as of March 9: 6.08

Average Upside Potential as of March 9: 32.57%

Number of Hedge Fund Holders: 17

Nokia Oyj (NYSE:NOK) is a leading Finnish telecommunications services and consumer electronics provider. The company has four divisions: Network Infrastructure, Mobile Networks, Cloud & Network Services, and Nokia Technologies. Nokia Oyj (NYSE:NOK) was held by 17 hedge funds at the close of Q4 2022. These funds disclosed positions worth $461.3 million in the company. As of December 31, LMR Partners is the leading investor in the company and has a position worth $47.8 million.

On February 14, Credit Suisse analyst Adithya Metuku updated his price target on Nokia Oyj (NYSE:NOK) to EUR 5.61 from EUR 6.05 and reiterated an Outperform rating on the shares. As of March 9, the stock has a TTM PE ratio of 6.08.

Nokia Oyj (NYSE:NOK) is placed second among the cheapest penny stocks to buy now according to analysts. The stock has received coverage from 31 analysts, of which 18 recommend to Buy the stock. The stock has an average price target of $6.30 which implies an upside of 32.57% from current levels.

Here is what Horos Asset Management had to say about Nokia Oyj (NYSE:NOK) in its Q3 2022 investor letter:

“Two clear examples of value traps that I remember with particular anger includes Nokia(NYSE:NOK). Two companies that suffered a rapid technological disruption in their business model and did not know or were not able to reinvent themselves in time. In the case of Nokia, we were dealing with the undisputed leader in cell phone sales. The company had an (apparently) ultra-solid balance sheet and enviable operating margins. However, the arrival of the smartphone brought a radical change to the industry, to which Nokia did not know how to adapt. In a short period of time, players such as Apple and Samsung wiped the Finnish giant off the map.”

1. Lufax Holding Ltd (NYSE:LU)

PE Ratio (TTM) as of March 9: 2.95

Average Upside Potential as of March 9: 10.48%

Number of Hedge Fund Holders: 17

Lufax Holding Ltd (NYSE:LU) is a leading Chinese fintech company. As of March 9, the stock is trading at a PE multiple of 2.95 and is presenting an attractive buying opportunity to investors. Lufax Holding Ltd (NYSE:LU) has received coverage from 15 Wall Street analysts, of which 6 recommend to Buy the stock. The stock has an average price target of $2.16 which represents an upside of 10.48% from current levels.

At the end of the fourth quarter of 2022, 17 hedge funds were long Lufax Holding Ltd (NYSE:LU) and held collective positions worth $199.2 million in the company. This is compared to 14 hedge funds in the previous quarter with stakes worth $150.9 million in the company. The hedge fund sentiment for the stock is positive.

As of December 31, Farallon Capital is the largest shareholder in Lufax Holding Ltd (NYSE:LU) and has disclosed a position worth $74.5 million in the company.

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