In this article, we discuss the 5 value stocks hedge funds like in 2022. If you want to read our analysis of some more value stocks, go directly to the 10 Value Stocks Hedge Funds Like in 2022.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
PE Ratio: 13.46
Pfizer Inc. (NYSE:PFE) makes and sells biopharma products. The hedge fund sentiment around the stock is overwhelmingly positive. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Pfizer Inc. (NYSE:PFE), up from 74 in the preceding quarter worth $2.6 billion.
As vaccine usage wanes, Pfizer Inc. (NYSE:PFE) has been working on the development of a COVID-19 pill named Paxlovid. Reports suggest that the company will overcome regulatory and production issues to make the pill available for in-home use by next year. The first supplies may be ready by late 2022.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer Inc. (NYSE:PFE) in late 2020, in the health care sector.”
4. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
PE Ratio: 22.33
Johnson & Johnson (NYSE:JNJ) makes and sells healthcare products. On January 25, Citi analyst Joanne Wuensch maintained a Buy rating on the stock with a price target of $195, noting that the quarterly earnings of the firm reflected the resilience the stock had in a tough market situation.
Johnson & Johnson (NYSE:JNJ) is a top value stock in the finance world. At the end of the fourth quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Johnson & Johnson (NYSE:JNJ), compared to 88 in the previous quarter worth $6.8 billion.
3. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 90
PE Ratio: 6.16
General Motors Company (NYSE:GM) makes and sells automobiles. Elite hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in General Motors Company (NYSE:GM) with 33 million shares worth more than $1.9 billion.
On March 11, Benchmark analyst Michael Ward maintained a Buy rating on General Motors Company (NYSE:GM) stock with a price target of $75, highlighting that the firm looked set to produce record financial results while funding investment despite near-term headwinds due to chip supply problems.
Junto Investments, in its Q4 2020 investor letter, mentioned General Motors Company (NYSE:GM). Here is what the fund has to say about General Motors Company in its letter:
“General Motors Company (NYSE:GM) was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and General Motors Company (NYSE:GM) is worth a whole lot more than is still reflected in the market.”
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 94
PE Ratio: 10.03
Wells Fargo & Company (NYSE:WFC) is a diversified financial services firm. Hedge funds have been loading up on the stock as interest rates rise. At the end of the fourth quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $6.11 billion in Wells Fargo & Company (NYSE:WFC), compared to 88 the preceding quarter worth $6.18 billion.
On January 18, Argus analyst Stephen Biggar reiterated a Buy rating on Wells Fargo & Company (NYSE:WFC) stock and raised the price target to $65 from $55, noting that after market-beating earnings, the firm had also offered robust guidance for 2022.
In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:
“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo & Company (NYSE:WFC) also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo & Company (NYSE:WFC) in particular, will, over time, lower their costs and successfully grow their businesses.”
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 108
PE Ratio: 26.92
Berkshire Hathaway Inc. (NYSE:BRK-B) is an Omaha-based conglomerate with interests in transport, insurance, and other businesses. At the end of the fourth quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $19.3 billion in Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 106 in the preceding quarter worth $19.4 billion.
Berkshire Hathaway Inc. (NYSE:BRK-B) recently disclosed that it had bought back nearly $7 billion of its own stock during the fourth quarter of 2021, taking the total share buybacks in the year to over $27 billion, up from $24 billion purchased in 2020. During the fourth quarter, the operating earnings of the firm jumped 45% year-on-year.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway Inc. (NYSE:BRK-B). Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway Inc. (NYSE:BRK-B) has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
You can also take a peek at Why These 10 Stocks Are Trending on Monday and 10 ETFs to Buy and Hold for the Next 10 Years.
