Five Financial Stocks Under $10 Poised To Explode

2. Genworth Financial Inc (NYSE:GNW)

Investors with Long Positions (as of June 30): 37

Aggregate Value of Investors’ Holdings (as of June 30): $471.31 Million

Hedge funds were enthusiastic about Genworth during the June quarter, but things could be looking different this quarter, as the stock slid by more than 26% during August on the heels of its disappointing second quarter financial results. Genworth Financial Inc (NYSE:GNW) missed both the top and bottom line expectations in those results due to stagnant net investment income and historically-low lending rates. On top of all this the company has missed EPS estimates for the last five quarters now. Consequently, Raymond James downgraded the company to ‘Outperform’ from ‘Strong Buy’. Currently, Genworth Financial Inc (NYSE:GNW)’s valuation looks extremely cheap, with a forward earnings multiple of just 4.35, which makes it an interesting pick from a long-term investment point of view. Eight of the top ten stockholders of the company among those that we track, hiked their stakes during the April-June quarter. The list was headed by ClearBridge, which holds about 9.34 million shares.