Top 5 Value Stocks Hedge Funds are Buying in 2022

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 110

P/E Ratio as of May 26: 9.61

JPMorgan Chase & Co. (NYSE:JPM) is one of the most prominent American financial services companies. In Q1 2022, elite investors piled into JPMorgan Chase & Co. (NYSE:JPM). The number of hedge funds holding stakes in the company increased to 110 at the end of March from 107 in the earlier quarter. 

On May 24, Societe Generale analyst Andrew Lim upgraded JPMorgan Chase & Co. (NYSE:JPM) to Buy from Hold with a price target of $150, up from $145. The company delivered positive guidance regarding net interest income, credit quality, and investment bank trading revenues, the analyst told investors. The analyst now has a more positive view on JPMorgan Chase & Co. (NYSE:JPM)’s surplus capital generation from 2023 and with the shares down significantly year-to-date, he thinks there is “too much negativity” factored in the price due to recession fears.

According to Insider Monkey’s Q1 data, Ken Fisher of Fisher Asset Management revealed a prominent stake in JPMorgan Chase & Co. (NYSE:JPM), comprising 7.76 million shares worth over $1 billion. 

Here is what Ariel Investments has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:

“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.

“In our view, inflation will not just be a 2021 phenomenon.” 

Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”

You can also take a look at 10 European Defense Stocks to Buy Now and 10 Growth ETFs to Buy Now. 

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