Insider Monkey has published an article featuring the 10 Best Cheap Stocks To Buy according to billionaire Abrams.
David Abrams is a self-made billion who has currently 17 stock positions. Abrams Capital Management, his hedge fund, has large holdings in various companies and his investments have also extended to other sectors such as: communications, consumer discretionary, healthcare, utilities, industrials and transports.
Here are the 10 best cheap stocks to according to Abrams.
Kinder Morgan Inc, is a Boston-based hedge fund. While there was instance of the stock falling sharply due to tumbling financial numbers and lower commodity prices, currently their divided yield is 6.69%. Abrams’ says it is good to buy stocks from them because they are expecting an earing range of $2.1 billion in the year 2021.
Another Boston-based hedge fund Willis Tower Watson Public Limited Company is one of Abrams’ recommendation. Having a good performance with its dividends in the past two years and currently offering a dividend yield of 1.28%.
Teva Pharmaceutical Industries Limited has outperformed the market index the past couple of years. Amerco is slowing gaining momentum this 2021 because of the increase of shares of moving and storage operators for household and commercial goods. Buying stocks in Alphabet Inc. is also a good decision, their good performance started when the lockdown happened when advertisements adjusts; other sectors stopped champagning while advertisement for goods picked up.
Abrams’ also suggest buying stocks from PG&E Corporation because their shares fell by 29% and their underperformance will extended until 2021 as a result of COVID-19.
With shares in automotive retailer jumped by 15%, buying stocks from Asbury Automotive Group Inc is a good deal according to Abrams. Another growing company is Facebook Inc. with shares with at $329 million, while the stock future of social media giants is questionable, Abrams adds Facebook Inc to his list of cheap stocks to buy.
Transdigm Group Inc an aerospace manufacturing firm had a dip in their shares in 2021. Abrams’ includes this in his list because the company is unlike to compete on a particular product so they will produce high levels of free cash flow, long equity duration, and a strong business model.
While Abram’s is bullish over shares of automotive retailers, Litha Motor’s Inc. hedge fund has increased to 19.5%. Many people are investing in automotive business, and Litha Motor’s Inc seems to be in a good position. According to Abrams’ this is the best cheap stock pick to buy now.
For an in-depth analysis of David Abrams’ list recommendations, you may read it on Insider Monkey 10 Best Cheap Stocks To Buy Now.