Top 5 Value Stocks to Buy for 2024 (Picked by Joel Greenblatt)

In this article, we discuss top 5 value stocks to buy for 2024 (picked by Joel Greenblatt). To read the details about Mr. Greenblatt’s life, portfolio performance, and investment strategy, go directly to Top 15 Value Stocks to Buy for 2024.

5. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73
Price to Earnings Ratio: 9.83

Pfizer Inc. (NYSE:PFE) is another value stock for 2024 picked by Joel Greenblatt, which discovers, develops, manufactures, and sells biopharmaceutical products. Pfizer Inc. (NYSE:PFE) deals in medicines and vaccines for various therapeutic areas, including cardiovascular, metabolic, and women’s health.

While Pfizer Inc. (NYSE:PFE) has dropped by about 45% year to date, the deep pullback makes it an ideal play on the value investment front. Pfizer Inc. (NYSE:PFE) trades at a price-to-earnings multiple of 9.83, much lower than 24 for the S&P 500. Gotham Asset Management reduced its holdings in the company by 2% in Q3 2023 to $17.35 million.

At the end of Q3 2023, Insider Monkey’s database reported that 73 hedge funds retained positions in Pfizer Inc. (NYSE:PFE), consistent with the previous quarter. The aggregated value of these holdings surpasses $2.4 billion.

Here is what Smead Capital Management, an asset management firm, said about Pfizer Inc. (NYSE:PFE) in its Q3 2023 investor letter: 

“Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).

On the downside, Target (TGT), Bank of America (BAC) and Pfizer Inc. (NYSE:PFE) detracted the most in the first nine months of the year. Pfizer (PFE) is suffering from a fall-off in Covid-19 vaccinations and we are trying to figure out what to do with it as a small holding.”

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4. BorgWarner Inc. (NYSE:BWA)

Number of Hedge Fund Holders: 25
Price to Earnings Ratio: 8.76

BorgWarner Inc. (NYSE:BWA) is a consumer cyclical play that provides solutions for combustion hybrid and electric vehicles worldwide. BorgWarner Inc. (NYSE:BWA) mostly deals in turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology and smart remote actuators.

BorgWarner Inc. (NYSE:BWA) has gained about 2% year to date and trades at a price-to-earnings multiple of 8.76 and a yield of 1.23%. As one of the top value stocks to buy for 2024, picked by Joel Greenblatt, Gotham Assets Management increased its stake by 162% in Q3 2023 to $11.27 million.

There were 25 hedge funds long BorgWarner Inc. (NYSE:BWA) in the third quarter, with a total stake value of $338.53 million.

In its first-quarter 2023 investor letter, Ariel Investments said the following about BorgWarner Inc. (NYSE:BWA):

“Several stocks in the portfolio had strong returns in the quarter. Leading supplier of solutions for combustion, hybrid and electric vehicles BorgWarner Inc. (NYSE:BWA) increased following a top- and bottom-line earnings beat, as well as a solid financial guidance for 2023, despite foreign currency headwinds. Meanwhile, BWA continues to successfully execute on its Charging Forward initiative and remains on track to deliver $4 billion in electric vehicle sales by 2025. In our view, BWA’s electric motor and driveline technology offerings position the company to grow intrinsic value throughout the evolution in the hybrid and electric vehicles market.”

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3. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 38
Price to Earnings Ratio: 7.42

Deerfield, Illinois-based CF Industries Holdings, Inc. (NYSE:CF) is one of the top value stocks to buy for 2024 picked by Joel Greenblatt for diversifying an investment portfolio into the basic materials sector. CF Industries Holdings, Inc. (NYSE:CF) manufactures and sells hydrogen and nitrogen products for energy fertilizer emissions and other industrial activity.

While CF Industries Holdings, Inc. (NYSE:CF) is down by about 7% for the year, it trades at a price-to-earnings multiple of 7.42, affirming undervaluation prospects considering the S&P trade at a P/E of 24. Amid the discounted valuation, Gotham Assets Management increased its stakes in CF Industries Holdings, Inc. (NYSE:CF) by 18% in Q3 2023 to $13.87 million.

As of September 2023, 38 of the 910 hedge funds part of Insider Monkey’s research had bought and owned CF Industries Holdings, Inc. (NYSE:CF)’s shares. Ken Griffin’s Citadel Investment Group is CF Industries Holdings, Inc. (NYSE:CF)’s biggest investor through a $141.43 million stake.

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2. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 52
Price to Earnings Ratio: 6.70

AT&T Inc. (NYSE:T) is a communication services company and one of the top value stocks to buy for 2024 picked by Joel Greenblatt, currently trading at a price of an earnings multiple of 6.70. While operating as a telecommunication services company, AT&T Inc. (NYSE:T) offers wireless voice and data communications services and sells handsets and wireless data cards.

Down by about 11% for the year, AT&T Inc. (NYSE:T) rewards investors with a 6.73% yield, which is ideal for anyone eying passive income on the side. Greenblatt hedge fund increased its stake in AT&T Inc. (NYSE:T) by 20% in Q3 2023 to $12.45 million.

By the end of Q3 2023, AT&T Inc. (NYSE:T) attracted investments from 52 hedge funds, as reported in Insider Monkey’s database. The total value of these stakes amounted to $1.7 billion, down from 56 hedge funds in the previous quarter, with stakes valued at $1.4 billion.

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1. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders: 48
Price to Earnings Ratio: 5.76

Marathon Petroleum Corporation (NYSE:MPC) is one of the top value stocks to buy for 2024 picked by Joel Greenblatt for investors looking to diversify their portfolios into the energy sector. Marathon Petroleum Corporation (NYSE:MPC) is a company that processes oil and other raw materials into fuels and chemicals at its refineries in different parts of the US.

Marathon Petroleum Corporation (NYSE:MPC) has benefited from high energy prices in 2023, which has helped support the 33% year-to-date gain. Nevertheless, the stock trades at a discounted valuation with a P/E of 6.70 compared to 24 for the S&P 500. It also comes with a 2.16% yield. Gotham Assets Management held stakes worth $12.11 million in Marathon Petroleum Corporation (NYSE:MPC) as of the end of Q3 2023.

In the third quarter of this year, Marathon Petroleum Corporation (NYSE:MPC) attracted investments from 48 of the 910 hedge funds analyzed in Insider Monkey’s survey. The prominent investor in Marathon Petroleum Corporation (NYSE:MPC) was Paul Singer’s Elliott Management, holding 11 million shares valued at $1.6 billion.

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