5 Ridiculously Cheap Stocks to Buy Now and Hold for the Long Term

In this article, we discuss the 5 ridiculously cheap stocks to buy now and hold for the long term. To read the detailed analysis of current market conditions, go directly to the 12 Ridiculously Cheap Stocks to Buy Now and Hold for the Long Term.

5. Devon Energy Corporation (NYSE:DVN)

PE Ratio as of April 12: 9.16

Revenue Growth (5-year): 32.26%

Number of Hedge Fund Holders: 50

Devon Energy Corporation (NYSE:DVN) is an oil and gas producer, and its operations are mainly concentrated in the Delaware Basin, Eagle Ford, Anadarko Basin, Powder River Basin, and Williston Basin. The company has seen a revenue growth of 32.26% over the last five years.

As of April 12, Devon Energy Corporation (NYSE:DVN) has a PE ratio of 9.16. On April 8, JPMorgan analyst Arun Jayaram raised the price target on Devon Energy Corporation (NYSE:DVN) to $62 from $57 and kept an Overweight rating. Talking about a few important initiatives of the company, the analyst mentioned that the company is well ahead of schedule to bring about a recovery in its capital efficiency and stock price.

50 hedge funds held stakes in Devon Energy Corporation (NYSE:DVN) in the fourth quarter of 2023, with positions worth $1.36 billion. D E Shaw is the most significant shareholder in the company, as of December 31, 2023. The firm increased its stake in the company by 135% to 5.078 million shares worth $230.032 million.

4. Cenovus Energy Inc. (NYSE:CVE)

PE Ratio as of April 12: 13.28

Revenue Growth (5-year): 48.28%

Number of Hedge Fund Holders: 50

Cenovus Energy Inc. (NYSE:CVE) is engaged in the development, production, refinement, transportation, and marketing of crude oil, natural gas, and refined petroleum products. As of April 12, the stock has a PE ratio of 13.28.

Cenovus Energy Inc. (NYSE:CVE) was part of 50 hedge funds’ portfolios, and the total stake value was $1.558 billion in the fourth quarter of 2023. Millennium Management has increased its stake in the company by 55% to 16.518 million shares worth $275.159 million and is the largest shareholder, as of the fourth quarter of 2023.

Cenovus Energy Inc. (NYSE:CVE) has witnessed sales growth of 48.28% over the last five years. On April 9, RBC Capital analyst Greg Pardy raised the price target on the stock to C$32 from C$28 and maintained an Outperform rating on the shares.

L1 Capital made the following comment about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2023 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long +23%) shares rallied as WTI oil prices rose to ~US$91/bbl over the month, the highest level since November 2022. The company also had tailwinds from higher refinery margins, particularly in North America which remains their key exposure. Cenovus continues to generate strong free cash flow at current oil price levels, with the long-life nature of its oil sands assets and its low cost of production providing a break-even oil price at around ~US$40/bbl. We estimate the company can reach its net debt target in early CY24, enabling a step-up in shareholder returns through on-market share buybacks.”

3. Cheniere Energy, Inc. (NYSE:LNG)

PE Ratio as of April 12: 3.87

Revenue Growth (5-year): 31.74%

Number of Hedge Fund Holders: 64

Cheniere Energy, Inc. (NYSE:LNG) is involved in LNG-related businesses through its subsidiaries, Cheniere Marketing, LLC, Cheniere Energy Partners, L.P. (NYSE:CQP), and others. As of April 12, the stock has a PE ratio of 3.87.

Over the past five years, Cheniere Energy, Inc.’s (NYSE:LNG) revenue has grown by 31.74%. The company is the third stock on our list of ridiculously cheap stocks to buy now and hold for the long term.

In the fourth quarter of 2023, 64 hedge funds held positions in Cheniere Energy, Inc. (NYSE:LNG) and their stakes amounted to $2.10 billion. This is compared to 58 funds in the previous quarter, with positions worth $1.458 billion. As of December 31, 2023, Israel Englander’s Millennium Management is the most dominant shareholder in the company. In the quarter, the firm increased its stake by 175% to 2.338 million shares worth $399.17 million, representing 0.17% of the portfolio.

TimesSquare Capital Management stated the following regarding Cheniere Energy, Inc. (NYSE:LNG) in its fourth quarter 2023 investor letter:

“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Cheniere Energy, Inc. (NYSE:LNG) operates liquefied natural gas terminals in Louisiana and Texas. Third quarter results were solid with lower than anticipated levels of expected capital expenditures, and management maintained full year guidance. Its shares edged forward by 3% on this report.”

2. Caesars Entertainment, Inc. (NASDAQ:CZR)

PE Ratio as of April 12: 10.97

Revenue Growth (5-year): 49.97%

Number of Hedge Fund Holders: 65

Caesars Entertainment, Inc. (NASDAQ:CZR) is a hotel and casino entertainment company that has properties in more than 50 destinations and operates well-known brands, including Caesars Palace, Harrah’s, Horseshoe, Eldorado, and others. The company has recorded a revenue growth of 49.97% over the last five years and the stock has a PE ratio of 10.97, as of April 12.

Based on 9 Wall Street analysts’ ratings over the past three months, Caesars Entertainment, Inc. (NASDAQ:CZR) has a consensus rating of Strong Buy. The average price target of $59.40 implies an upside of 48.13% from the last price of $40.10, as of April 12.

Hedge sentiment was positive toward Caesars Entertainment, Inc. (NASDAQ:CZR) in the fourth quarter of 2023 as 65 hedge funds held positions in the stock worth $1.36 billion. This is compared to 56 funds’ positions in the preceding quarter worth $1.269 billion. As of the fourth quarter of 2023, HG Vora Capital Management is the top shareholder in the company and has a position worth $239.088 million.

Baron Funds stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its fourth quarter 2023 investor letter:

“In the most recent quarter, we acquired additional shares in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. We are big fans of CEO Tom Reeg and remain optimistic about the long-term prospects for the company.

The company operates primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company generates approximately 50% of its cash flow from Las Vegas and 50% from regional destination markets. The company owns approximately half of its real estate and leases the other half from gaming REIT companies – Gaming and Leisure Properties, Inc. and VICI Properties Inc…” (Click here to read the full article)

1. Apollo Global Management, Inc. (NYSE:APO)

PE Ratio as of April 12: 13.13

Revenue Growth (5-year): 117.61%

Number of Hedge Fund Holders: 77

Apollo Global Management, Inc. (NYSE:APO) is a New York-based private equity firm that makes investments in credit, private equity, and real estate markets. As of April 12, the stock has a PE ratio of 13.13.

Apollo Global Management, Inc. (NYSE:APO) takes the top spot among the ridiculously cheap stocks to buy now and hold for the long term. According to our database, 77 hedge funds held stakes in the stock in Q4 of 2023, with positions worth $4.81 billion.

On April 8, Barclays analyst Benjamin Budish raised the price target on Apollo Global Management, Inc. (NYSE:APO) to $133 from $122 and maintained an Overweight rating on the shares. Furthermore, Apollo Global Management, Inc. (NYSE:APO) has experienced a revenue growth of 117.61% over the last five years.

Ave Maria made the following comment about Apollo Global Management, Inc. (NYSE:APO) in its Q3 2023 investor letter:

“Apollo Global Management, Inc. (NYSE:APO) was added to the Fund this quarter. Historically, Apollo has excelled in traditional leveraged buyout and leveraged loan markets, establishing itself as a premier buyout firm. In 2009, Apollo launched Athene, a retirement services provider specializing in fixed-rate annuities. Athene quickly ascended to become the leading fixed-rate annuity provider in the US, providing Apollo with nearly a half a trillion dollars of perpetual capital to invest. Apollo predominantly invests this capital in investment-grade private credit, sourcing investment opportunities through 16 origination platforms. These platforms deploy capital into aircraft financing, fleet financing, senior debt, non-agency home loans, and other assets. The investment grade credit market is vast – estimated at $40 trillion. By leveraging Athene’s liability origination capabilities and the asset origination capabilities of Apollo’s various platforms, Apollo is poised to grow to over $1 trillion in AUM over the next five years.

We are confident that these three alternative investment managers will grow their respective businesses substantially over the next five years. This should provide ample growth in their stock prices and, consequently, the Fund’s positions in them.”

Should you invest $1,000 in Apollo Global Management, Inc. (NYSE:APO) right now?

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Disclosure: None. You can also look at the 20 Best Places for Adventure Travel in the World and the 10 Most Undervalued Value Stocks To Buy Now.

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