In this article, we discuss AMD and 4 other stocks that Redditors are buying on the dip. If you want to read about some stocks popular on Reddit, go directly to Redditors are Buying AMD and 9 Other Stocks on the Dip.
5. The Lion Electric Company (NYSE:LEV)
Number of Hedge Fund Holders: 15
Percentage Decrease in Share Price Over Past Six Months: 55%
The Lion Electric Company (NYSE:LEV) designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles. On August 5, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.19, beating market estimates by $0.26. The revenue over the period was $29 million, up over 76% compared to the revenue over the same period last year and missing analyst estimates by $0.77 million. The firm said it delivered 105 vehicles during the period, an increase of 44 vehicles as compared to the 61 delivered in the same period last year.
On July 16, Roth Capital analyst Craig Irwin maintained a Buy rating on The Lion Electric Company (NYSE:LEV) stock with a price target to $13, noting that the disbursement of the $5 billion in federal funding for electric vehicle school buses should present a material catalyst.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Ionic Capital Management is a leading shareholder in The Lion Electric Company (NYSE:LEV), with 1.7 million shares worth more than $72 million.
4. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
Percentage Decrease in Share Price Over Past Six Months: 12%
Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions worldwide. On September 8, the company announced that it would extend the industrial portfolio of user equipment to facilitate private wireless network connectivity in North America. As part of the plan, the company aims to use a 5G field router and dongle to enable Internet of Things connectivity for enterprises, educational establishments, cities, and other entities. The firm is also building an optical transport network in Australia.
On September 15, Credit Suisse analyst Adithya Metuku maintained a Buy rating on Nokia Oyj (NYSE:NOK) stock and increased the price target to EUR 6.31 from EUR 5.45, noting that the firm was better placed than Ericsson amid wireless capex headwinds.
At the end of the second quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $309 million in Nokia Oyj (NYSE:NOK), compared to 22 in the preceding quarter worth $565 million.
3. Carnival Corporation and plc (NYSE:CCL)
Number of Hedge Fund Holders: 24
Percentage Decrease in Share Price Over Past Six Months: 44%
Carnival Corporation and plc (NYSE:CCL) operates as a leisure travel company. The stock has climbed in recent weeks as travel demand picks up following the easing of health regulations across the globe that were put in place during the pandemic. The impact of inflation on travel also appears to be easing. These two catalysts have spurred Redditors to buy shares in travel firms as analysts predict a travel boom right before the holiday period. The stock has climbed nearly 2% over the past few weeks.
On July 22, Truist analyst Patrick Scholes maintained a Sell rating on Carnival Corporation and plc (NYSE:CCL) stock and lowered the price target to $8 from $15, citing big data on future bookings, pricing, and conversations with executives at large travel agencies.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Jade Capital Advisors is a leading shareholder in Carnival Corporation and plc (NYSE:CCL), with 150,000 shares worth more than $1.3 billion.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Carnival Corporation and plc (NYSE:CCL) was one of them. Here is what the fund said:
“Amazingly, some companies like Carnival Corporation & plc (NYSE:CCL) (CCL, which we don’t own) made it back to its March 2020 lows when business was shut down with no sign of return. Carnival already resumed positive operating cash flow generation and disclosed stronger than historical bookings for 2023 at higher prices. The market focused on fear of recession and refinancing risk posed by higher rates.”
2. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 28
Percentage Decrease in Share Price Over Past Six Months: 22%
OneMain Holdings, Inc. (NYSE:OMF), a financial service holding company, engages in the consumer finance and insurance businesses. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.87, missing market estimates by $0.10. The revenue over the period was $1 billion, up over 2% compared to the revenue over the same period last year but missing analyst estimates by $30 million. The firm also declared a quarterly dividend of $0.95 on the same day, in line with previous. The forward yield was an impressive 9.56%.
On August 15, RBC Capital analyst Kenneth Lee maintained an Outperform rating on OneMain Holdings, Inc. (NYSE:OMF) stock and lowered the firm’s price target to $51 from $62, noting that the downside for the firm was manageable as it had capital generation potential.
At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $621.5 million in OneMain Holdings, Inc. (NYSE:OMF), compared to 37 in the previous quarter worth $866 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and OneMain Holdings, Inc. (NYSE:OMF) was one of them. Here is what the fund said:
“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings. (…read more)
1. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Number of Hedge Fund Holders: 40
Percentage Decrease in Share Price Over Past Six Months: 24%
Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, manufactures, and markets proprietary semiconductor products. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past six years. These payouts have also registered uninterrupted growth during this time. The sector median in this regard is just two years. In early August, the firm declared a quarterly dividend of $0.62 per share, an increase of 11% compared to the previous dividend. The forward yield was 2.18%.
On July 16, Exane BNP Paribas analyst Karl Ackerman maintained a Buy rating on Skyworks Solutions, Inc. (NASDAQ:SWKS) stock with a price target to $120, noting that the firm remains better positioned given the relative strength of the Apple supply chain.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Millennium Management is a leading shareholder in Skyworks Solutions, Inc. (NASDAQ:SWKS), with 1.6 million shares worth more than $149 million.
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
