In this piece, we will take a look at the five value stocks that are too cheap to ignore. For more stocks, head on over to 10 Value Stocks That Are Too Cheap To Ignore.
5. Teck Resources Limited (NYSE:TECK)
Number of Hedge Fund Holders: 46
Teck Resources Limited (NYSE:TECK) is an energy, metals, and minerals miner that is headquartered in Vancouver, Canada. The firm sells products such as copper, zinc, coal, lead, and bitumen.
Teck Resources Limited (NYSE:TECK)’s second quarter earnings saw the firm more than triple its operating income, as it brought in CAD 3.3 billion in EBITDA. This also led to the company quintupling its net income to CAD 1.7 billion for a $3.12 in earnings per share Another key factor about the firm is that the strengthening U.S. plays to its advantage as it earns the bulk of revenues in the currency but pays out its costs in CAD. Therefore, it gets cheaper for Teck Resources Limited (NYSE:TECK) to operate as the CAD weakens but at the same time, the stronger USD brings it more revenue.
Teck Resources Limited (NYSE:TECK) pays a 10 cent dividend for a 1.12% yield and its shares are up by 17% year to date. Insider Monkey studied 895 hedge fund portfolios for their second quarter of 2022 investments to discover that 46 had held a stake in the company.
Out of these, Eric W. Mandelblatt’s Soroban Capital Partners is Teck Resources Limited (NYSE:TECK)’s largest investor. It owns 13 million shares that are worth $416 million.
4. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 57
Global Payments Inc. (NYSE:GPN) is a payments technology and solutions firm that is headquartered in Atlanta, Georgia, the United States. The company provides funding solutions, prepaid debit and payroll cards, and a commercial payments platform.
Global Payments Inc. (NYSE:GPN) managed to reduce the headwinds from shutting down its Russian business by acquiring another large payments firm that will end up expanding its customer base to 4.5 billion for a 500 million increase from last year. Following the acquisition, the firm aims to increase its revenue by as much as 11% annually this year to sit at $8.55 billion.
Global Payments Inc. (NYSE:GPN)’s second quarter revenue stood at $2.2 billion, marking 6.7% annual growth. It pays a 25 cent dividend for a 0.87% yield. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 57 had also bought the company’s shares.
Global Payments Inc. (NYSE:GPN)’s largest investor is William B. Gray’s Orbis Investment Management which owns 5.6 million shares that are worth $626 million.
Manole Capital Management mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Over the next week or so, we will be publishing a stock-specific note on payment processor Global Payments Inc. (NYSE:GPN). We have owned GPN for nearly two decades and it currently is one of our largest positions. We will begin by highlighting recent spending trends, eCommerce developments and how many of our payment companies can actually benefit from inflation and higher costs. We will discuss their business, industry trends, what is driving their growth, and then highlight their compelling valuation.”
3. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 65
CVS Health Corporation (NYSE:CVS) is a healthcare company that operates pharmacies, sells prescription and over the counter drugs, and provides health plans. The firm is headquartered in Woonsocket, Rhode Island, the United States.
CVS Health Corporation (NYSE:CVS) is one of the strongest performing stocks in the healthcare sector, and its shares have appreciated by 5% over the past year, outperforming the Health Care Select Sector ETF fund which has posted a loss over the same time period. The consensus Wall Street share price target for the company sits at $122 per share, which is significantly higher than the current share price of $91.68.
CVS Health Corporation (NYSE:CVS) is also a strong contender for a stock that can hold against a recessionary storm, as its products are unlikely to see their demand drop during an economic downturn. By the end of this year’s June quarter, 65 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
CVS Health Corporation (NYSE:CVS)’s largest investor in our database is Cliff Asness’ AQR Capital Management which owns 3.3 million shares that are worth $312 million.
Vitava Funds mentioned the company in its Q3 2022 investor letter. Here is what the fund said:
We took advantage of this in the summer of 2020 and brought the stock into our portfolio at a time when its price was pressed down still further by the coronavirus pandemic. CVS is a giant. It has revenues of USD 300 billion, making it one of the largest companies in the world. It is a relatively stable and highly profitable company with strong free cash flow. Over the past few years, CVS has focused primarily on reducing debt.
This is already much lower than it had been after the Aetna acquisition, and most of the cash is now likely to go to shareholders through share buybacks or be used for smaller acquisitions to grow the company further. CVS trades at about 11 times annual earnings, which is a very appealing valuation given the expected future growth in profitability and overall modest cyclicality in its business.”
2. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the largest semiconductor firms in the world. The company designs and sells processors, graphics processing units (GPUs), modems, and a host of other semiconductor products that are used in smartphones and other devices. The firm is headquartered in San Diego, California, the United States.
QUALCOMM Incorporated (NASDAQ:QCOM)’s fiscal third quarter earnings saw the firm report a whopping 54% annual growth in its GAAP EPS, which came at a time the technology industry was struggling to keep up with inflationary headwinds. Data from S&P Capital IQ suggests that the firm is expected to deliver a 23%+ return on assets for its fiscal years 2022, 2023, and 2024.
Another key fact about QUALCOMM Incorporated (NASDAQ:QCOM) is that its licensing model lets it earn revenue even without selling any products, as not only do companies pay it for its hardware, but also for the ability to use its products in gadgets. JPMorgan raised the company’s share price target to $190 in October 2022, as it revealed that the firm’s expected revenue growth in the fiscal year 2023 goes against a low 9x P/E ratio. QUALCOMM Incorporated (NASDAQ:QCOM) pays a 75 cent dividend for a 2.59% yield, and 71 out of the 895 hedge funds polled by Insider Monkey for their June quarter of 2022 investments had held a stake in the company.
QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management which owns 4.2 million shares that are worth $541 million.
1. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 96
T-Mobile US, Inc. (NASDAQ:TMUS) is an American telecommunications carrier. The firm has more than 100 million customers all over the U.S. and its territories, and it is headquartered in Bellevue, Washington.
T-Mobile US, Inc. (NASDAQ:TMUS) has been one of the strongest performing stocks on the market this year, with its shares up by 20% year to date amidst broader index downturns. The company aims to add more than six million customers by the end of this year, and its first and second fiscal quarters saw it bring in three million additions. During the same time period, both its rivals, Verizon and AT&T, saw their additions either drop or stay below two million.
Additionally, T-Mobile US, Inc. (NASDAQ:TMUS)’s shares have returned 127% over the past five years, while its peers have lost value. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 96 investors in the company.
Out of these, Andreas Halvorsen’s Viking Global is T-Mobile US, Inc. (NASDAQ:TMUS)’s largest investor. It owns 9.1 million shares that are worth $1.2 billion.
Disclosure: None. You can also take a look at 13 Best Cybersecurity Stocks To Buy and 10 Best Stocks to Buy According to Billionaire Dan Loeb.
