In this article, we discuss 5 value stocks that analysts are upgrading. If you want to check more value stocks that were recently upgraded, click Analysts Are Upgrading These 10 Value Stocks.
5. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 26
P/E Ratio as of March 14: 15.50
Nokia Oyj (NYSE:NOK) is a Finnish company that deals in mobile networks, network infrastructure, and cloud services. Over the last 12 months, the stock has gained close to 17%, and the company bested market consensus for earnings and revenue in Q4 2021.
Simon Leopold, an analyst from Raymond James, upgraded Nokia Oyj (NYSE:NOK) to Outperform from Market Perform with a $6.50 price target on March 14. The analyst sees Nokia Oyj (NYSE:NOK)’s competitive position improving and he thinks the company is exposed to several untapped market opportunities. According to Leopold, Nokia Oyj (NYSE:NOK)’s business has “inflected” and the management has successfully rebuilt its credibility among users and investors. The latest share repurchases and possible distribution of dividends are “great signals regarding management’s confidence”. There is also “potential optionality” in Nokia Oyj (NYSE:NOK)’s optical and mobility units, noted the analyst.
According to the hedge funds traced by Insider Monkey, 26 funds were long Nokia Oyj (NYSE:NOK) at the end of 2021, and Arrowstreet Capital was the biggest shareholder of the company, with 37.3 million shares worth $232.3 million.
4. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Number of Hedge Fund Holders: 30
P/E Ratio as of March 14: 7.59
Alpha Metallurgical Resources, Inc. (NYSE:AMR) is a Tennessee-based mining company that extracts coal across locations in Northern and Central Appalachia. Alpha Metallurgical Resources, Inc. (NYSE:AMR)’s metallurgical coal is used for steel production and its thermal coal is utilized for power generation.
A total of 30 hedge funds held long positions in Alpha Metallurgical Resources, Inc. (NYSE:AMR) during the fourth quarter of 2021, up from 19 funds in the quarter earlier. According to the Q4 data compiled by Insider Monkey, Alta Fundamental Advisers held the largest stake in the company, with more than 1 million shares worth close to $64 million.
Riley analyst Lucas Pipes on March 10 upgraded Alpha Metallurgical Resources, Inc. (NYSE:AMR) to Buy from Neutral with a price target of $155, up from $143, noting 28% upside to the shares. The analyst observed that Alpha Metallurgical Resources, Inc. (NYSE:AMR)’s operations over the past several months were flawless, and the company is on the path for a “significantly improved” 2022. As a result of the Russia-Ukraine war, Pipes sees the pricing upside on Alpha Metallurgical Resources, Inc. (NYSE:AMR)’s remaining volume as a means to increase EBITDA by “multiples” over the compressed levels, which were caused by the broken global supply chains and a scarcity of growth investment in the coal sector.
On March 7, Alpha Metallurgical Resources, Inc. (NYSE:AMR) reported earnings for the quarter ending December 2021. The EPS came in at $13.45, above consensus by $2.01. The $828.22 million revenue also exceeded estimates by $102.47 million.
3. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 36
P/E Ratio as of March 14: 18.19
NetApp, Inc. (NASDAQ:NTAP) is a hybrid cloud infrastructure and data management company, based in Sunnyvale, California, serving customers worldwide. The stock has gained almost 17.59% over the last 12 months.
On March 10, Barclays analyst Tim Long upgraded NetApp, Inc. (NASDAQ:NTAP) to Overweight from Equal Weight with a price target of $102, up from $85. The analyst considered NetApp, Inc. (NASDAQ:NTAP)’s recurring revenue to be “underrated”, and he expects upside for the stock from higher services revenue and quicker than anticipated growth in public cloud data services. Long sees the current weakness in shares as an attractive entry point, and projects NetApp, Inc. (NASDAQ:NTAP) to attain 10% revenue growth in fiscal 2022 and 7% in fiscal 2023.
Elite hedge funds are bullish on NetApp, Inc. (NASDAQ:NTAP) as of the close of 2021. At the end of December, 36 funds disclosed long positions in NetApp, Inc. (NASDAQ:NTAP), up from 29 funds in the preceding quarter. Holocene Advisors is a prominent shareholder of the company, with 1.8 million shares worth $167.8 million.
Here is what Miller Howard Investments has to say about NetApp, Inc. (NASDAQ:NTAP) in its Q3 2021 investor letter:
“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold NetApp (NTAP) of which has a strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”
2. Olin Corporation (NYSE:OLN)
Number of Hedge Fund Holders: 46
P/E Ratio as of March 14: 6.49
Olin Corporation (NYSE:OLN) is a New York-based manufacturer of chemical and metal products, such as copper alloys, ammunition, chlorine, sodium hydroxide, epoxies, vinyls, and hydrochloric acid.
KeyBanc analyst Aleksey Yefremov upgraded Olin Corporation (NYSE:OLN) on March 14 to Overweight from Sector Weight with a $64 price target. According to the analyst, the recent hike in global energy prices is favorable for Olin Corporation (NYSE:OLN), both in the short and long-term. He also believes that the long-term chlor-alkali costs will be higher in Europe as a consequence of the war, which will benefit businesses like Olin Corporation (NYSE:OLN).
On February 25, Olin Corporation (NYSE:OLN) declared a quarterly dividend of $0.20 per share, which was paid on March 11, to shareholders of record on March 4. The stock yields 1.60% as of March 14.
A total of 46 hedge funds disclosed bullish positions in Olin Corporation (NYSE:OLN) at the end of December 2021, up from 43 funds in the earlier quarter. Sachem Head Capital is the leading shareholder of the company, with a $687.3 million stake.
1. XPO Logistics, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 53
P/E Ratio as of March 14: 18.77
XPO Logistics, Inc. (NYSE:XPO) is headquartered in Greenwich, Connecticut, providing freight transportation services across 18 countries. Elite hedge funds hold large stakes in XPO Logistics, Inc. (NYSE:XPO). As of Q4 2021, 53 funds were bullish on the stock, up from 49 funds in the earlier quarter.
On February 8, XPO Logistics, Inc. (NYSE:XPO) reported its financial results for Q4 2021, posting earnings per share of $1.34, topping market predictions by $0.36. The revenue came in at $3.36 billion, above consensus by approximately $107 million.
BofA analyst Ken Hoexter upgraded XPO Logistics, Inc. (NYSE:XPO) to Buy from Neutral on March 11, lifting the price target to $96 from $70. The company has a renewed focus on increasing growth and profitability, while the spinoff of its tech-enabled truck brokerage “will be one of the most exciting pure plays in the sector”, according to the analyst.
Among the hedge funds tracked by Insider Monkey, Orbis Investment Management is the leading shareholder of XPO Logistics, Inc. (NYSE:XPO), with more than 11 million shares worth close to $860 million.
Here is what ClearBridge Mid Cap Growth Strategy has to say about XPO Logistics, Inc. (NYSE:XPO) in its Q3 2021 investor letter:
“The Strategy also gained shares of GXO Logistics following its spinoff from existing holding XPO Logistics. GXO is the largest pure play contract logistics company globally, handling warehousing/distribution, order fulfillment and e-commerce, but its value has been hidden as one of five divisions inside parent XPO.”
You can also take a look at 10 Safe Dividend Stocks to Buy Today and 10 Defense Stocks to Buy As Geopolitical Tensions Rise.
