In this article, we will take a look at 5 most promising low-cost stocks according to analysts. To skip our analysis of the recent market activity, you can go directly to see the 13 Most Promising Low-Cost Stocks According to Analysts.
5. Nokia Corporation (NYSE:NOK)
Upside Potential as of December 20: 34.77%
Number of Hedge Fund Holders: 17
Espoo, Finland-based Nokia Corporation (NYSE:NOK) is a communications and information technology company that operates in the areas of network infrastructure and advanced technologies. It provides products and services including fiber, fixed wireless access technologies, copper, IP routing, data center, subsea and terrestrial optical networks, among others.
On December 20, Nokia Corporation (NYSE:NOK) announced an agreement to sell its Device Management (DM) and Service Management Platform (SMP) businesses to Lumine Group Inc. The transaction is valued at €185 million which includes a contingent consideration of up to €35 based on performance.
The transaction is part of Nokia Corporation (NYSE:NOK) strategy to actively manage its Cloud and Network Services portfolio to invest in other strategic areas. The company is working on a threefold strategy to improve its operating margin: give business groups more operational autonomy; embed sales teams into the business groups; and reset the company’s cost base to protect profitability. The company is targeting €800 million to €1.2 billion in cost savings by 2026.
4. Vodafone Group Plc (NASDAQ:VOD)
Upside Potential as of December 20: 52.96%
Number of Hedge Fund Holders: 22
London, UK-based Vodafone Group Plc (NASDAQ:VOD) is the largest pan-European and African telecoms company providing mobile and fixed services to over 300 million customers in 17 countries. It also serves more than 73 million people across seven countries with Vodacom Financial Services and M-Pesa – the largest financial technology platform in Africa.
On October 31, Vodafone Group Plc (NASDAQ:VOD) announced the signing of agreements to sell its Vodafone Spain business to Zegona Communications plc in a transaction valued at €5.0 billion. The consideration comprises €4.1 billion in cash and up to €0.9 billion in the form of Redeemable Preference Shares
The transaction is part of Vodafone Group Plc (NASDAQ:VOD) strategy to scale back its European operations. The company intends to “review the optimal use of proceeds in the context of a broader capital allocation review.”
As of Q3 2023, Vodafone Group Plc (NASDAQ:VOD) shares were held by 22 hedge funds. Jim Simons’ Renaissance Technologies was the largest hedge fund shareholder with ownership of 13.8 million shares valued at $131 million.
3. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Upside Potential as of December 20: 34.05%
Number of Hedge Fund Holders: 63
New York City-based Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It was formed in April 2022 through the merger of WarnerMedia’s merger with Discovery which combines premium entertainment, sports and news assets with leading non-fiction and international entertainment and sports businesses.
On November 8, Warner Bros. Discovery, Inc. (NASDAQ:WBD) released its financial results for Q3 2023 which failed to meet the consensus estimates for EPS. The company generated a revenue of $10.0 billion and a normalized EPS of -$0.07, which missed expectations by $0.26.
As of Q3 2023, Warner Bros. Discovery, Inc. (NASDAQ:WBD) was ranked highest on our list of 13 most promising low-cost stocks according to analysts. The stock was held by 63 hedge funds with the total shares held by hedge funds valued at $1.5 billion.
In its Q3 2023 “Partners Fund” investor letter, Longleaf Partners, managed by Southeastern Asset Management, made the following comments about Warner Bros. Discovery, Inc. (NASDAQ:WBD):
“Media conglomerate Warner Bros Discovery (WBD) declined in the quarter with a combination of the writers’ and actors’ strikes headlines, and a fight between Charter and Disney that led to more concerns about the linear and streaming profit structure. Although both situations actually improved as the quarter went on, both created uncertainty that weighed heavily on the WBD stock price in the near term. The underlying business is executing better, with solid free cash flow generation reported in the quarter that should continue for the foreseeable future. The competitive landscape is getting brighter with multiple streamers taking price increases. WBD is in the hands of a strong management team and board that are focused on creating long-term value for shareholders.”
2. Barclays PLC (NYSE:BCS)
Upside Potential as of December 20: 31.55%
Number of Hedge Fund Holders: 13
Barclays PLC (NASDAQ:BCS) is a London-based universal bank providing financial services across consumer banking and payments operations around the world, as well as global corporate and investment banking.
On October 24, Barclays PLC (NYSE:BCS) released its financial results for Q3 2023. Its total income increased by 3% y-o-y to £19.8 billion while its net income went up by 10% y-o-y to £4.4 billion.
As of Q3 2023, Barclays PLC (NYSE:BCS) shares were owned by 13 of the 910 hedge funds tracked by Insider Monkey. Arrowstreet Capital was at the top of this list with ownership of 17.5 million shares valued at $136 million.
1. Banco Santander, S.A. (NYSE:SAN)
Upside Potential as of December 20: 30.37%
Number of Hedge Fund Holders: 14
Madrid, Spain-based Banco Santander, S.A. (NYSE:SAN) is a leading commercial bank, founded in 1857. It serves more than 166 million customers in the U.S., Europe, and Latin America.
On October 25, Banco Santander, S.A. (NYSE:SAN) released its financial and operational results for Q3 2023. Its total income increased by 5% y-o-y to €14.9 billion, while net income increased by 9% y-o-y to €2.9 billion.
On December 20, Banco Santander, S.A. (NYSE:SAN) announced that it has closed a transaction with the Federal Deposit Insurance Corporation to participate in a joint venture that consists of a $9 billion portfolio of New York based multifamily real estate assets of Signature Bank. It acquired a 20% stake in the joint venture for $1.1 billion and will service 100% of the assets in the portfolio.
As of Q3 2023, 14 prominent hedge funds tracked by Insider Monkey held shares of Banco Santander, S.A. (NYSE:SAN), valued at $580 million.
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