In this article, we will take a look at the 5 most promising low-cost stocks according to analysts. To see more such companies, go directly to 12 Most Promising Low-Cost Stocks According to Analysts.
5. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 33
One-Year Price Target: $14.09
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian petroleum company. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) ranks 5th in our list of the most promising low-cost stocks according to analysts.
In January, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) reported its oil and gas production data for 2022. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)’s total oil and gas production for FY’2022 was 2.68 million boe/day, surpassing its full-year target of 2.6 million boe/day.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) also said its commercial production came in at 2.36 million boe/day, more than the 2.3 million target.
As of the end of the third quarter of 2022, 33 hedge funds tracked by Insider Monkey reported owning stakes in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR). The net worth of these stakes was about $4.7 billion.
4. DISH Network Corporation (NASDAQ:DISH)
Number of Hedge Fund Holders: 40
One-Year Price Target: $32.25
Telecom and media company DISH Network Corporation (NASDAQ:DISH) has significant upside potential from the current levels, based on its average price target.
In November, DISH Network Corporation (NASDAQ:DISH) posted its third quarter earnings. DISH Network Corporation (NASDAQ:DISH)’s GAAP EPS came in at $0.65, beating estimates by $0.09. Revenue in the quarter fell by 7.9% to total $4.1 billion, missing estimates by $50 million. DISH Network Corporation (NASDAQ:DISH) said it closed the third quarter with 10.02 million pay-TV subscribers, including 7.61 million DISH TV subscribers and 2.41 million SLING TV subscribers.
At the end of the third quarter of 2022, 40 hedge funds had stakes in DISH Network Corporation (NASDAQ:DISH). The total value of these stakes was $776 million.
3. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Hedge Fund Holders: 42
One-Year Price Target: $17.00
Animal health products company Elanco Animal Health Incorporated (NYSE:ELAN) is one of the promising low-cost stocks according to analysts. The Indiana-based company in December received an approval from the FDA for its Bexacat tablets for diabetes mellitus in cats. The product will be indicated to improve glycemic control “in otherwise healthy cats with diabetes mellitus not previously treated with insulin,” according to the FDA.
For the third quarter, Elanco Animal Health Incorporated (NYSE:ELAN) reported an adjusted EPS of $0.20, which beat estimates by $0.04. Revenue in the quarter fell 8.8% on a YoY basis but met analysts’ estimates. For the full-year 2022, Elanco Animal Health Incorporated (NYSE:ELAN) said it expects revenue to come between $4.385 billion to $4.43 billion, versus the consensus of $4.49 billion.
2. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 51
One-Year Price Target: $8.84
Energy company Southwestern Energy Company (NYSE:SWN)’s shares have gained about 12% over the past 12 months. Southwestern Energy Company (NYSE:SWN) is under pressure as natural gas prices decline. However, Southwestern Energy Company (NYSE:SWN)’s bulls believe natural gas prices will come out of this decline as demand will shoot in the coming months. In January, Wells Fargo analyst Roger Read started covering Southwestern Energy Company (NYSE:SWN) with an Equal Weight rating and a $6.50 price target. The analyst praised Southwestern Energy Company (NYSE:SWN)’s efforts to build gas resources and its related acquisitions. However, oversupply in the natural gas market caused the analyst to take a “neutral stance.”
Hedge funds are bullish on Southwestern Energy Company (NYSE:SWN). A total of 51 hedge funds tracked by Insider Monkey reported having stakes in the natural gas company, up from 47 hedge funds in the previous quarter.
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.
