5 Most Promising Low-Cost Stocks According to Analysts

Page 5 of 5

1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 61

One-Year Price Target: $20.36

Warner Bros. Discovery, Inc. (NASDAQ:WBD) ranks 1st in our list of the most promising low-cost stocks according to analysts. In January, Warner Bros. Discovery, Inc. (NASDAQ:WBD) jumped after investment firm Guggenheim analyst Mike Morris upped the stock’s rating to Buy from Neutral with a price target of $16.50. The analyst mentioned in his note that Warner Bros. Discovery, Inc. (NASDAQ:WBD) has an “attractive narrative” for the first half of 2023.  The analyst likes Warner Bros. Discovery, Inc. (NASDAQ:WBD) after the recently announced domestic affiliate renewals, cost controls and the upcoming launch of restructured Max products.

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is also one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. At the end of the third quarter of 2022, 61 hedge funds in Insider Monkey’s database reported having stakes in the media and entertainment giant.

Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q4 2022 investor letter:

Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery (WBD) was another top detractor in the quarter and for the year. As has been documented in almost every form of media over the last several months, while we and WBD’s board/management knew there were things wrong at Warner Brothers under AT&T, it turned out to be even worse than expected. The aforementioned advertising market is not helping WBD either. While the brand and library values remain intact, the realization of this value has been deferred. With leverage closer to 5x than the sub-4x we thought we would be looking at in 2023, the market’s judgment has been harsh. We remain confident in management and growing free cash flow from here, with eight different insiders buying shares personally this year. We encourage you to listen to Partners Fund PM Ross Glotzbach interviewing WBD CEO and President David Zaslav in the latest episode of the Price-to-Value Podcast.”

You can also take a peek at 10 Hot Tech Stocks To Buy Now and 10 Hot Healthcare Stocks To Buy Now.

Page 5 of 5