In this article, we will take a look at the 5 most profitable value stocks now. To see more such companies, go directly to 16 Most Profitable Value Stocks Now.
5. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 63
Agricultural machinery company Deere & Company (NYSE:DE) in February increased its quarterly dividend by 4.2%. Insider Monkey’s database of 943 hedge funds shows that 63 hedge funds had stakes in Deere & Company (NYSE:DE) as of the end of the fourth quarter of 2022, up from 57 hedge funds in the previous quarter. The biggest hedge fund stakeholder of Deere & Company (NYSE:DE) was Catherine D. Wood’s ARK Investment Management which owns a $51 million stake in the company.
ClearBridge Large Cap Value Strategy made the following comment about Deere & Company (NYSE:DE) in its Q4 2022 investor letter:
“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 67
Oil giant ConocoPhillips recently revealed a 10-year plan according to which the company plans to have $115 billion of free cash flow available for distributions and capital spending averaging about $10 billion annually, resulting in a 4%-5% production compound annual growth rate at an average reinvestment rate of ~50%.
As of the end of the fourth quarter of 2022, 67 hedge funds tracked by Insider Monkey had stakes in the company. The biggest hedge fund stakeholder of the company was Ric Dillon’s Diamond Hill Capital which owns a $651 million stake in the company.
3. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 74
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the most profitable value stocks to buy now. The Goldman Sachs Group, Inc. (NYSE:GS)’s GAAP EPS in the first quarter came in at $8.79, beating estimates by $0.69. Revenue however fell 5.5% in the period year over year to $12.22 billion, missing estimates by $440 million.
As of the end of the fourth quarter of 2022, 74 hedge funds had stakes in The Goldman Sachs Group, Inc. (NYSE:GS), up from 69 hedge funds in the previous quarter. The most notable hedge fund stakeholder of The Goldman Sachs Group, Inc. (NYSE:GS) was Eagle Capital Management of Boykin Curry which had a $1.1 billion stake in the company.
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 79
Exxon Mobil Corporation (NYSE:XOM) is one of the most profitable companies, thanks to its huge footprint in the energy markets and rising energy demand. UBS recently upgraded Exxon Mobil Corporation (NYSE:XOM) to Buy from Neutral with a $144 price target. The firm thinks Exxon Mobil Corporation (NYSE:XOM) is best positioned to outperform in the current upcycle.
Out of the 943 hedge funds tracked by Insider Monkey, 79 hedge funds had stakes in Exxon Mobil Corporation (NYSE:XOM). The biggest hedge fund stakeholder of Exxon Mobil Corporation (NYSE:XOM) is Rajiv Jain’s GQG Partners which owns a $3.6 billion stake in the company.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
JPMorgan Chase & Co. (NYSE:JPM) is in the spotlight after crushing Q1 earnings estimates. GAAP EPS in the first quarter came in at $4.10, beating estimates by $0.69. Revenue in the period increased by about 24.8% year over year to reach $38.3 billion, surpassing estimates by $2.53 billion. Major bans like JPMorgan Chase & Co. (NYSE:JPM) are seeing huge inflows of customers as people flee small banks after the SVB collapse.
100 hedge funds in Insider Monkey’s database of 943 hedge funds entered 2023 with stakes in JPMorgan Chase & Co. (NYSE:JPM).
Giverny Capital made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2023 investor letter:
“This quarter marked the end of our third year in business. It has been a wild ride – launching at the start of the pandemic, watching a bubble in low-quality stocks and cryptocurrencies inflate and deflate, and generally living with a high level of volatility. On April 14, our holding JPMorgan Chase & Co. (NYSE:JPM) announced nice earnings for the first quarter and the stock rose 7%. In a truly efficient market, the largest, best- managed bank in America would not rise or fall 7% on a single data point. Yet, we see it regularly.”
You can also take a peek at 10 Most Profitable Small Businesses in 2023 and 10 Best April Dividend Stocks To Buy.
