In this article, we discuss the 10 stocks to buy under $20 according to Ken Fisher.
Ken Fisher is the founder, chairman and co-chief investment officer at Fisher Asset Management, one of the largest hedge funds in the world. The Washington-based fund has a portfolio value of $178.5 billion as of the fourth quarter, an increase from around $161 billion in Q3 2021. The investing maestro studied forestry at Humboldt State University, and graduated with an associate degree in economics in 1972. He has authored a number of books on investing, and his column for Forbes called ‘Portfolio Strategy’ was published continuously from 1984 to 2017. His father, Phillip Fisher, was also a well-known stock investor and a pioneer in the field of growth investing.
Our Methodology
For the following list, we scoured through Ken Fisher’s 13F filings for the fourth quarter of 2021 and picked his top 10 holdings with a share price of under $20. Hedge fund data around each stock has also been provided using Insider Monkey’s database of 924 elite hedge funds.
10 Stocks to Buy Under $20 According to Ken Fisher
10. Vishay Intertechnology, Inc. (NYSE:VSH)
Fisher Asset Management’s Stake Value: $82,890,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 31
Starting off this list is Vishay Intertechnology, Inc. (NYSE:VSH), in which Ken Fisher owns a $82.9 million stake comprising of 3.79 million shares, representing 0.04% of his overall portfolio as of the fourth quarter. Including Fisher Asset Management, 31 hedge funds in total reported bullish bets on Vishay Intertechnology, Inc. in Q4 2021, up from 28 in the previous quarter. Royce & Associates was the top shareholder in the company in the fourth quarter, with a stake worth $85 million and consisting of 3.89 million shares.
Vishay Intertechnology, Inc. deals in the manufacturing and sale of discrete semiconductors and passive electronic components, and is based in the United States. The firm posted $843.07 million in revenue for Q4 2021, which was above analysts’ forecasts by $18.60 million. Earnings per share were reported at $0.62, in-line with estimates.
Matthew Sheerin of research firm Stifel maintained a ‘Buy’ rating on Vishay Intertechnology, Inc. shares in February. The firm is well-poised to enjoy future growth on the back of an uptick in 5G technology and electric vehicles, with both industries deploying many semiconductors products and technologies.
Vishay Intertechnology, Inc. acquired Barry Industries for $21 million in December, in a bid to expand its expertise in technologies such as high-frequency and high-power resistors.
In addition to Vishay Intertechnology, Inc., Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN) are some of the top stock picks of billionaire Ken Fisher.
9. Banco Bradesco S.A. (NYSE:BBD)
Fisher Asset Management’s Stake Value: $83,085,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 12
Banco Bradesco S.A. (NYSE:BBD) provides banking and insurance services to customers in Brazil and around the world.
On January 24, Barclays analyst Gilberto Garcia initiated coverage of Banco Bradesco S.A. with an ‘Overweight’ rating and price target of $5, calling the company his top pick in the sector. Garcia feels the company boasts a “significant moat” due to the larger weight of its insurance operations, and can benefit from asset spin-offs in the future, lending the firm more optionality.
Fisher Asset Management, in the fourth quarter of 2021, reported owning 24.3 million shares in Banco Bradesco S.A., with a price tag of $83.08 million representing 0.04% of its total portfolio. This made it the largest stakeholder in the Brazilian firm out of all the hedge funds tracked by Insider Monkey. In total, 12 hedge funds were long Banco Bradesco S.A. in the fourth quarter, with combined stakes of $146.5 million. This is down from 13 in the preceding quarter.
As of March 4, Banco Bradesco S.A. has gained 13.45% in the year to date, and 3.25% in the last 12 months. The firm’s Q4 revenue was $5.58 billion, above analysts’ forecasts by $191.88 million. EPS was recorded at $0.13, in-line with estimates.
8. Crédit Agricole S.A. (OTC:CRARY)
Fisher Asset Management’s Stake Value: $131,918,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 1
Crédit Agricole S.A. (OTC:CRARY) is a French company which deals in the provision of banking and financial services. It operates through the segments: Asset Gathering; French Retail Banking – LCL; International Retail Banking; Specialised Financial Services; and Large Customers.
In the fourth quarter, Fisher Asset Management held 18.48 million shares valued at $131.91 million in Crédit Agricole S.A., representing 0.07% of its overall portfolio. This is an increase in holding of 6% over the previous quarter, where the fund held 17.51 million shares in Crédit Agricole S.A..
In February, research firms JP Morgan and Barclays both had ‘Overweight’ ratings on Crédit Agricole S.A., with price targets of €15 and €16.60, respectively.
7. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Fisher Asset Management’s Stake Value: $204,924,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 9
ASE Technology Holding Co., Ltd. (NYSE:ASX) provides a range of semiconductors packaging and testing solutions. It also deals in front-end engineering testing, wafer probing, and electronic manufacturing services. The firm is based in Taiwan and has clients around the world.
Out of all the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 9 were long ASE Technology Holding Co., Ltd., holding combined stakes worth $277.1 million. In comparison, 10 hedge funds held positions worth $271.5 million in the firm a quarter ago.
Fisher Asset Management increased its holding in ASE Technology Holding Co., Ltd. by 9% in the fourth quarter, amounting to a stake worth $204.92 million and consisting of 26.23 million shares. In comparison, the hedge fund held 24.13 million shares in ASE Technology Holding Co., Ltd. in Q3 2021.
Reporting its Q4 earnings on February 10, ASE Technology Holding Co., Ltd. reported an EPS of $0.50, exceeding consensus estimates by $0.28. Revenue for the quarter stood at $6.21 billion, above analysts’ forecasts by $221.96 million and up 16.84% from the year-ago period.
6. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
Fisher Asset Management’s Stake Value: $272,137,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 5
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is a Spanish banking firm which provides retail banking, wholesale banking, asset management, and private banking services globally. According to figures for December 2020, the firm operates through a vast network of approximately 7,400 branches and 31, 000 ATMs in roughly 30 countries around the world.
On February 15, Morgan Stanley analyst Alvaro Serrano maintained an ‘Overweight’ rating on Banco Bilbao Vizcaya Argentaria, S.A., and raised the price target to €7.30 from €7. The bank enjoys better growth prospects than most European banks owing to its higher exposure to emerging markets.
In December, Banco Bilbao Vizcaya Argentaria, S.A. partnered with IT company Accenture (NYSE:ACN) to power its digital transformation journey, by deploying artificial intelligence (AI) to enhance its customer service experience. The deal will allow the Spanish firm improve operational costs and make data-based decisions. The financial terms of this 10-year deal were not disclosed.
Banco Bilbao Vizcaya Argentaria, S.A. reported earnings per share of $0.23 in the fourth quarter, which outperformed estimates by $0.06. The firm raked in $6.26 billion in revenue for Q4, which beat analysts’ forecasts by $506.35 million.
Ken Fisher was the top shareholder of Banco Bilbao Vizcaya Argentaria, S.A. by the end of December, holding 46.36 million shares worth $272.13 million and representing 0.15% of his overall portfolio. The billionaire increased his holding in the Spanish firm by 5% over the previous quarter, where he held 44.54 million shares of Banco Bilbao Vizcaya Argentaria, S.A..
Overall hedge fund sentiment was down on Banco Bilbao Vizcaya Argentaria, S.A. in the fourth quarter, where 5 hedge funds held $284.8 million worth of positions in the company. In contrast, 10 hedge funds reported owning positions with a combined value of $310.4 million in Banco Bilbao Vizcaya Argentaria, S.A. at the close of Q3 2021.
Along with Banco Bilbao Vizcaya Argentaria, S.A., Microsoft Corporation, Apple Inc., and Amazon.com, Inc. are exciting stocks found in the portfolio of billionaire Ken Fisher.
5. Murata Manufacturing Co., Ltd. (OTC:MRAAY)
Fisher Asset Management’s Stake Value: $305,112,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: N/A
Murata Manufacturing Co., Ltd. (OTC:MRAAY) ranks next on the list of top stocks to buy under $20 according to billionaire Ken Fisher. Fisher Asset Management held 15.34 million shares in Murata Manufacturing Co., Ltd. at the close of Q4 2021, with a value of $305.11 million and representing a 0.17% slice of its total holdings.
The Japanese firm provides electrical components such as capacitors, inductors, resistors, thermistors, sensors and other related products. Murata Manufacturing Co. Ltd.’s (OTC:MRAAY) North American unit Murata Electronics North America in February agreed to acquire the entirety of the shares of Resonant (NASDAQ:RESN), which will become a wholly-owned subsidy of the company. This $295.7 million deal will allow both firms to increase their offerings and expand their market reach and customer base.
In January, Goldman Sachs analyst Daiki Takayama reiterated a ‘Buy’ rating on Murata Manufacturing Co. Ltd. revising the price target to 10,800 yen, up from 10,600 yen, noting that he remains remains bullish on the firm’s monolithic ceramic capacitors.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Fisher Asset Management’s Stake Value: $385,003,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 26
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is an oil and gas company based in Rio de Janeiro, Brazil. With a market cap of $92.16 billion, it is one of the largest producers of oil globally. Fisher Asset Management owns a $385 million stake in the firm as of Q4, comprising of 35 million shares and amounting to 0.21% of its total holdings.
Goldman Sachs analyst Bruno Amorim upgraded Petróleo Brasileiro S.A. – Petrobras to ‘Buy’ from ‘Neutral’ in December, and set a price target of $14.20, forecasting a positive risk/reward for the company heading into 2022. As of March 4, the firm has gained a whopping 90.17% in the last 12 months, and 32.15% year to date.
Petróleo Brasileiro S.A. – Petrobras reported its Q4 earnings on February 24, and recorded an EPS of $0.71, beating estimates by $0.06. Quarterly revenue of $26.22 billion was above analysts’ forecasts by $1.21 billion.
Investors were seen loading up on Petróleo Brasileiro S.A. – Petrobras shares, with 26 hedge funds holding stakes in the company in Q4 2021, up from 23 in the previous quarter.
3. Fanuc Corporation (OTC:FANUY)
Fisher Asset Management’s Stake Value: $419,877,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 2
Fanuc Corporation (OTC:FANUY) is a Japanese firm which provides factory automation products to the manufacturing industry around the globe. These include lasers, robots, compact machining centers, electric injection molding machines and ultra-precision machines. As of the fourth quarter, Ken Fisher held 19.83 million shares in Fanuc Corporation, with a combined value of $419.87 million. This is up 5% from the previous quarter where the billionaire held 19.03 million shares in the firm.
2 out of 924 elite hedge funds tracked by Insider Monkey were bullish on Fanuc Corporation in the fourth quarter, the same as the quarter before.
On February 17, BofA analyst Kenjin Hotta downgraded Fanuc Corporation to ‘Neutral’ from ‘Buy’, noting that he sees a peak for Japanese machine tool orders as of March, and believes investors should pivot towards stocks better positioned for growth, or defensive stocks that tend to perform better during down-cycles.
2. Intesa Sanpaolo S.p.A. (OTC:ISNPY)
Fisher Asset Management’s Stake Value: $476,500,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 1
Intesa Sanpaolo S.p.A. (OTC:ISNPY) is one of the largest banks in Europe, providing a range of financial services including consumer credit, e-money, leasing services, wealth management and private banking services. The Italian firm trades with a market cap of $40.14 billion.
As of the end of December, Fisher Asset Management held a stake worth $476.5 million in Intesa Sanpaolo S.p.A., consisting of 30.7 million shares and amounting to a 0.26% slice of the fund’s total holdings. This signaled an increase of 4% in holding from Q3, where the fund held 29.64 million shares in the firm.
In February, Morgan Stanley analyst Antonio Reale gave Intesa Sanpaolo S.p.A. an ‘Overweight’ rating and a price target of €3.70, up from €3.30. Deutsche Bank analyst Giovanni Razzoli gave the Italian firm a ‘Buy’ rating and a revised price target of €3.30.
1. ING Groep N.V. (NYSE:ING)
Fisher Asset Management’s Stake Value: $674,347,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 7
ING Groep N.V. (NYSE:ING) is a Dutch banking company which provides financial services including asset management, life and non-life insurance, business lending and mortgage services to clients around the globe. In February, UBS analyst Johan Ekblom raised the firm’s price target on ING Groep N.V. to €17 from €16.30 and reiterated a ‘Buy’ rating on the company shares.
7 out of 924 elite hedge funds tracked by Insider Monkey held positions worth roughly $686 million in ING Groep N.V. in the fourth quarter of 2021. This is down from 8 hedge funds in the preceding quarter, holding combined stakes worth $693 million.
In the fourth quarter, Fisher Asset Management owned 48.44 million shares of ING Groep N.V. worth $674.34 million, which accounted for 0.37% of the fund’s overall holdings. In comparison, Ken Fisher held 46.38 million shares of the firm in the quarter before.
On March 2, ING Groep N.V. announced that it had stopped pursuing new businesses with Russian entities, and had also waived fees for transactions to Ukraine through its retail markets for personal customers. It also announced a €3 million donation towards UNICEF’s relief efforts to help children in war-affected Ukraine.
Artisan Partners, an investment firm, mentioned ING Groep N.V. in its Q4 2021 investor letter, stating:
“While European bank stocks generally did well in 2021, ING performed exceptionally well—up almost 70% in euros. ING is the largest domestic lender in the Benelux and also has fintech operations with strong market positions in major markets including Australia, Germany, Spain, France, Italy and several Eastern European markets. ING is profitable, and it operates with significant excess capital that it’s accumulated over several years through retained earnings. The pandemic’s onset led to a regulatory moratorium on distributions to shareholders, who reacted by pushing the share price down to levels last seen during the 2008 financial crisis. Back in 2008, ING was thinly capitalized, overdiversified and losing money—a very different profile from its profitable and overcapitalized position in 2020. We saw this as an opportunity and increased our position, and the price rebounded 60% from the 2020 bottom. Even after that impressive gain, the shares remained cheap, trading at 58% of book value—though even that simple statistic understates the undervaluation. At the time, the bank carried an estimated €12 billion of excess capital on a market cap of €30 billion. Net of that excess capital, the shares traded at 4.6X our estimate of normalized earnings. In 2021, conditions changed. The pandemic receded, leading to relaxed regulatory restrictions on shareholder distributions. In addition, profits boomed as provisions set aside for pandemic-era credit losses proved unnecessary. Additionally, a new CEO appointed in July 2020 has done a great job focusing the business on profitable geographies. Changes to the business have both improved profitability and increased the company’s already overcapitalized balance sheet. The share price has rebounded close to book value—a much more reasonable valuation.”
You can also take a look at 10 Best Renewable Energy Stocks to Buy Now and 10 Best High Yield Dividend Stocks To Buy.
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This article is originally published at Insider Monkey.
