In this piece, we will take a look at the 15 best stocks under $15. If you want to skip our take on the economy and the stock market, then head on over to 5 Best Stocks Under $15.
July has been the tone setting month when it comes to the future of the U.S. economy. Throughout the month, multiple data sets have been released which indicate that not only does inflation appear to be cooling down but the economy might also remain resilient enough to avoid a recession that has been feared since mid 2022. The latest bit of economic data, that might have changed the status quo about what to expect from the economy and even the stock market later this year is the fresh GDP report from the Commerce Department. According to this data set, the American economy grew by 2.4% in the second quarter of 2023 - a figure that appears quite remarkable when we consider that output actually reduced in Q2 2022. The 2.4% GDP growth rate marked an acceleration over Q1 2023, and at the same time, while both total and disposable incomes grew, the rate of their growth slowed down as a tighter credit environment takes hold.
The effects of this data on the stock market were rather muted as investors, already wary of the Federal Reserve's relentless tendency to raise interest rates, were fearful that the stronger economy gives the central bank more room to increase the rates by avoiding damage to the economy. In fact, the U.S. economy growth rate data came a day after the bank had raised interest rates by 25 basis points to take them to a 22 year high. As part of comments made with his decision, Fed chairman Jerome Powell pointed out that his staff was not forecasting a recession in the U.S. this year, and considering the rapid rate of interest rate hikes, the bank can afford to take a break and evaluate the economy before it delivers more hikes.
At the same time, if the wage and labor market does not significantly slow down, then the Fed might raise rates even more if it thinks that higher incomes keep inflation above the bank's target range of 2%. On top of prices, the Commerce Department's economic growth data also outlined that the gross domestic purchases price index increased by 1.9% in the second quarter, slowing down from the 3.8% reading in Q1 2023. The Fed's preferred metric, the personal consumption expenditure (PCE) index without the impact of food and energy was up by 3.8% for a good drop over Q1 reading of 4.9%.
Another crucial data set that can serve as a crystal ball of sorts for the rest of the year is earnings. Big firms often share their expectations for the short term, and on this front, we're lucky since corporate heavyweights such as McDonald's Corporation (NYSE:MCD), Meta Platforms, Inc. (NASDAQ:META), and Microsoft Corporation (NASDAQ:MSFT). McDonald's CEO Chris Kempczinski shared that his firm has not seen consumer sentiment shift and in fact it might be on a recovery trajectory to meet 2019 levels. This is probably due to the fact that higher disposable incomes have enabled people to keep up spending, and McDonald's is seeing strong interest from people earning between $45,000 and $100,000.
Jeremy Barnum: Yes. So I am sure, Jamie has some views here. But in my in my view, I would just caution against jumping to too many super positive conclusions based on a couple of recent trends. And I think generally our point is less about trying to predict a particular outcome and more about trying to make sure that we don’t get too much euphoria that over concentrates people on one particular predictions when we know that there is a range of outcomes out there. So obviously, we were talking a lot about the potential for a soft lending right now. No lending, neither, it’s inflation or whatever and — whether our own views on that have changed meaningfully. I don’t know, but the broader point is we continue to be quite focused on, Jamie’s prior comments that loss rates still have time to — room to normalize even both pandemics we’re probably over-earning on credit a little bit Obviously, we’ve talked about the expectation that the NII is going to come down quite a bit, so even, forgetting about whether you’ve got some surprisingly negative outcomes on the economy is always today even in the central case, you just need to recognize that there should be some significant normalization.
Jamie Dimon: Yes. I would just add, the 5.8% [unemployment rate] is not our prediction, that is the average of the unemployment under multiple scenarios that we have to use which hypothetical for CECL. Asset predictions on something different and we don’t know the outcome. We trying to be really clear here, the consumer in good shape, their spending down their excess cash. That’s all. Tailwinds. If we go into recession, we’re going with rather good condition, low borrowings and good, our price-value still but the headwinds are substantial and somewhat unprecedented. There is more Ukraine Oil Gas, market, timing, unprecedented fiscal, needs of governments, few team which we’ve never experienced before, I just think people should take a deep breath of that and we don’t know those things because the soft landing in mild recession for our recession. And obviously, sure we will be the best.
With these details in mind, let's take a look at some great stocks to buy that trade for less than $15. Some top picks are First Horizon Corporation (NYSE:FHN), Roivant Sciences Ltd. (NYSE:ROIV), and Warner Bros. Discovery, Inc. (NASDAQ:WBD).
To compile our list of the best stocks to buy under $15, we first ranked all firms that had a share price lower than $15 and were rated Buy or higher on average according to their market capitalization. Then, the top 40 out of these were selected and further ranked through the number of hedge funds that had bought their shares during Q1 2023. The top 15 stocks under $15 out of these are as follows.
15 Best Stocks Under $15
15. Coty Inc. (NYSE:COTY)
Number of Investors In Q1 2023: 21
Coty Inc. (NYSE:COTY) is a consumer defensive firm that makes and sells products such as perfumes and body care products under a variety of popular brands such as Hugo Boss and Calvin Klein. The firm was out with some good news in July 2023, as it announced the successful refinancing of a $2 billion revolving credit facility.
After sifting through 943 hedge funds for their March quarter of 2023 shareholdings, Insider Monkey discovered that 21 had bought a stake in Coty Inc. (NYSE:COTY). Out of these, the firm's largest shareholder is Jim Simons' Renaissance Technologies with an investment worth $37 million.
Along with Roivant Sciences Ltd. (NYSE:ROIV), First Horizon Corporation (NYSE:FHN), and Warner Bros. Discovery, Inc. (NASDAQ:WBD), Coty Inc. (NYSE:COTY) is a great stock under $15.
14. Plug Power Inc. (NASDAQ:PLUG)
Number of Investors In Q1 2023: 23
Plug Power Inc. (NASDAQ:PLUG) provides hydrogen fuel cells and other power technologies for both automotive and other industrial uses. It scored a big win in July 2023 after winning a product deal for a 100 megawatt plant in Europe.
By the end of this year's first quarter, 23 of the 943 hedge funds part of Insider Monkey's database had invested in the firm. Plug Power Inc. (NASDAQ:PLUG)'s largest shareholder is Ken Griffin's Citadel Investment Group with a $58 million stake.
13. Full Truck Alliance Co. Ltd. (NYSE:YMM)
Number of Investors In Q1 2023: 25
Full Truck Alliance Co. Ltd. (NYSE:YMM) is a Chinese firm that operates a software platform connecting truckers with shippers. Ten of the 20 analysts that covered the stock in May and June rated it as a Strong Buy, and its business model ties it closely to the Chinese economy.
25 of the 943 hedge funds surveyed by Insider Monkey for their first quarter of 2023 shareholdings had bought and owned a stake in Full Truck Alliance Co. Ltd. (NYSE:YMM). Thomas Steyer's Farallon Capital is the firm's biggest investor in our database with a $333 million investment.
12. Blue Owl Capital Inc. (NYSE:OWL)
Number of Investors In Q1 2023: 25
Blue Owl Capital Inc. (NYSE:OWL) is an American lender and debt financing firm that serves primarily the real estate industry. It expanded its portfolio in July after taking a minority stake in a real estate alternative investment firm.
25 of the 943 hedge funds part of Insider Monkey's Q1 2023 database had invested in the company. Blue Owl Capital Inc. (NYSE:OWL)'s largest hedge fund shareholder is Alexander West's Blue Pool Capital courtesy of a stake worth $456 million.
11. New York Community Bancorp, Inc. (NYSE:NYCB)
Number of Investors In Q1 2023: 28
New York Community Bancorp, Inc. (NYSE:NYCB) is a community bank that provides a standard range of banking services. After dipping in March during the regional banking crisis, the stock is up a comfortable 3.7% year to date.
Insider Monkey dug through 943 hedge funds for their March quarter of 2023 shareholdings and discovered that 28 had bought New York Community Bancorp, Inc. (NYSE:NYCB)'s shares. Out of these, the bank's largest shareholder is Ken Griffin's Citadel Investment Group with an investment worth $98 million.
10. Vodafone Group Public Limited Company (NASDAQ:VOD)
Number of Investors In Q1 2023: 28
Vodafone Group Public Limited Company (NASDAQ:VOD) is a British telecommunications provider with a global operations base. The firm's second quarter revenue marked a small growth despite economic troubles in the Eurozone, but German sales continued to be a problem.
As of March 2023, 28 of the 943 hedge funds part of Insider Monkey's research had invested in the communications company. Vodafone Group Public Limited Company (NASDAQ:VOD)'s biggest investor among these is Jim Simons' Renaissance Technologies with a $201 million stake.
9. Vale S.A. (NYSE:VALE)
Number of Investors In Q1 2023: 29
Vale S.A. (NYSE:VALE) is a global mining company headquartered in Brazil. The nature of its products, such as iron ore, copper, and nickel makes them highly dependent on economic activity.
Insider Monkey took a look at 943 hedge fund portfolios for this year's first quarter and discovered that 29 had bought Vale S.A. (NYSE:VALE)'s shares. Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital is the largest shareholder with an investment worth $498 million.
8. Grab Holdings Limited (NASDAQ:GRAB)
Number of Investors In Q1 2023: 32
Grab Holdings Limited (NASDAQ:GRAB) is a Singaporean technology company that offers a single platform for different services such as ride sharing and delivery. The stock is rated Strong Buy on average.
32 of the 943 hedge funds part of Insider Monkey's Q1 2023 database had held a stake in the firm. Out of these, the largest investment in Grab Holdings Limited (NASDAQ:GRAB) comes from Stephen Mildenhall's Contrarius Investment Management through a $89 million stake.
7. KeyCorp (NYSE:KEY)
Number of Investors In Q1 2023: 34
KeyCorp (NYSE:KEY) is a regional bank that has been in the industry for more than a century now. Its stock is down 30% year to date, and the bank is facing difficulties in the current high interest rate environment.
By the end of this year's first quarter, 34 of the 943 hedge funds polled by Insider Monkey had invested in KeyCorp (NYSE:KEY). Its largest hedge fund shareholder is Phill Gross and Robert Atchinson's Adage Capital Management with an investment worth $208 million.
6. Energy Transfer LP (NYSE:ET)
Number of Investors In Q1 2023: 35
Energy Transfer LP (NYSE:ET) is a gas company with tens of thousands of miles of pipelines in its portfolio. It scored a big win in July when America's largest LNG producer entered into an agreement with the firm for a new export plant.
35 of the 943 hedge funds polled by Insider Monkey had invested in Energy Transfer LP (NYSE:ET) as 2023's March quarter ended. Out of these, the biggest investor was David Abrams' Abrams Capital Management with a $222 million stake.
First Horizon Corporation (NYSE:FHN), Energy Transfer LP (NYSE:ET), Roivant Sciences Ltd. (NYSE:ROIV), and Warner Bros. Discovery, Inc. (NASDAQ:WBD) are some top under $15 stocks on the hedge fund radar.
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Disclosure: None. 15 Best Stocks Under $15 is originally published on Insider Monkey.