This post is a detailed overview of the best bargain stocks that you can invest in this year.
There are sometimes stocks out there that are more valuable than what they're currently priced at. Like many things that are being sold for less than what they're worth, these kinds of stocks are an absolute steal for investors and the opportunity to buy them should not be missed.
Bargain stocks often have intrinsic value that, for some reason or another, is not reflected in their current price. Stocks that are traded for a bargain will eventually, fortune permitting, come to a point where the value rises meteorically to match its true worth -- making those who managed to buy it for the cheap the biggest winners.
The main and most important thing about investing in bargain stocks is being able to identify which stocks are being sold for a bargain and which are just regular stocks. This can take some serious experience and a lot of research to pull off successfully.
What ARE The Best Bargain Stocks of 2021?
Luckily, this article exists to save you time and enumerate the bargain stocks for you:
1. The Bank of New York Mellon Corporation (NYSE: BK)
Market Value: $43.14 Billion
The shares of one of the oldest banking giants have increased by over 20% since the beginning of this year. Born in 2007 from a merger of the Bank of New York and the Mellon Financial Corporation, the company is one of the world's biggest custodian banks. It currently has $2.2 trillion in assets under management and $41.7 trillion in assets under custody as of the second quarter of 2021.
The Financial Stability Board has classified this as a "systemically important bank" that, through the Bank of New York, has a history that goes back more than 200 years.
Recently, more and more hedge funds have taken interest in the bargain stocks of the company and there are 49 hedge funds currently tied to the bank as of March of this year.
2. Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD)
Market Value: $3.78 Billion
Based in California, the company was founded in 1915 and has cycled through different names over the years -- originally being called the General Tire and Rubber Company, then becoming GenCorp in 1984, then adopting its current name in 2015.
As of December of last year, the technology manufacturing company was officially acquired by Lockheed Martin for $4.4 billion.
The company deals mainly in Aerospace, defense, and real estate. Though many investors believe that the current value of the company's stocks does not match its intrinsic value, buying stocks of the company currently will put you in the position to profit off of the rapidly growing race for commercial space travel.
There are currently 30 hedge funds investing in Aerojet Rocketdyne Holdings which is less than last year's 36 hedge funds.
3. Mueller Industries, Inc. (NYSE: MLI)
Market Value: $2.33 Billion
Founded in 1915, the company is headquartered in Memphis, Tennessee, and is a multi-billion dollar revenue corporation that's publicly traded. They are manufacturers and sellers of copper, brass, aluminum, and plastic products which are expressed in two segments: Plumbing & Refrigeration and Original Equipment Manufacturers (OEM).
Though not the largest of the companies on this list, the main reason investors tag Mueller Industries stocks as undervalued is because of its loyal base of customers that often buy wholesale. The current trajectory of the company shows share price gains and it is known for frequently rewarding its investors with dividends that increase over time -- the most recent announcement is an increase of around 30%. This means the company's stocks are essentially a steal for income investors.
There are currently 20 hedge funds investing in the company -- all taking a bullish stance for the expectancy of future price increases.
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4. American Express Company (NYSE: AXP)
Market Value: $138.59 Billion
Founded in 1850, the company is a massive multi-national financial services provider that was named as the 23rd most valuable brand in the world by Forbes in 2017. It also scored the highest within financial services and continues to hold an integral place in the financial industry.
This is why it comes as a bit of a shock that its stocks are as cheaply priced as they are. Investors absolutely love to capitalize on this and the fact that there has been sustainable dividend growth over the last two decades sweetens the deal even further.
The current dividend yield of the company is at 1% and stock prices have rallied 40% so far since the beginning of this year. Total revenue for the year 2020 was at $36.09 billion and there are currently a whopping 59 hedge funds investing in the company.
5. Crane Co. (NYSE: CR)
Market Value: $5.44 Billion
With a history that goes back to 1855, the Chicago-based company is known as an industrial machinery product maker. Founded and originally owned by the Crane family, it was later sold and went on to diversify its portfolio to accommodate a variety of industries. Perhaps, the company is best known to the public as a manufacturer of vending machines via its Crane Merchandising Systems subsidiary. Crane Co. has expanded its lineup of snack machines with its acquisitions of Glasco Polyvend Lektrovend (GPL) and Automatic Products (API)
The company is currently poised to benefit from the recovering market and investors are well aware of the advantage of buying the stocks now while the stocks are cheap. Over the past few months, the company's shares have outperformed the broader market index year to date. The dividend that they regularly pay also makes it a good stock to hold for the long term.
6. GATX Corporation (NYSE: GATX)
Market Value: $3.10 Billion
The company was founded in 1885 and is well-known for railcar operating and leasing in North America and Europe. The name derives from the company's prior corporate name, General American Transportation Corporation.
Though not the most famous company on this list, regular annual revenue for the company usually passes the $1 billion mark. Though the recent record shows underperformance, shares are still up by 48% over the past 12 months. There are currently 16 hedge funds that have the company in its portfolio and the current dividend yield is 2.28% with sustained dividend growth in the last 16 years consecutively.
7. CNH Industrial N.V. (NYSE: CNHI)
Market Value: $18.56 Billion
The Italian multinational company has footholds in a plethora of industries. These include the designing, producing, and selling of agricultural and construction equipment, trucks, commercial vehicles, buses, and special vehicles. They also deal in powertrains for industrial and marine applications.
The company is mostly owned by Exor and is so massive that it operates across 180 countries. Many investors take a bullish position with the stocks of CNH Industrial and with good reason -- the stocks have rallied 141% over the last year alone. By the first quarter of this year, 40% year over year to $7 billion.
Some estimates put the revenue growth to 14%-18% for 2021 when compared to the previous year.
8. Griffon Corporation (NYSE: GFF)
Market Value: $1.39 Billion
Thanks to the relaxing of restrictions and the reopening of the economy, the shares of the Griffon Corporation increased by 24% since the start of this year. The dividend yield is also at 1.24% which makes it great for the long-term-minded investor.
The company is a multinational conglomerate headquartered in New York City. The main thing they do is acquire, own, and operate businesses in different industries to diversify their portfolio.
There are currently 13 hedge funds investing in the company which is lower than last year's 18 hedge funds.
9. Herc Holdings Inc. (NYSE: HRI)
Market Value: $3.35 Billion
The company outperformed the market estimates by a wide margin -- becoming something of an enigma to investors. Stock prices grew by 68% and the newly emerged Florida-based company is expected to continue growing as the pandemic begins to subside.
There are currently 17 hedge funds investing in the company with Gamco Investors representing the largest investor among them -- accounting for 2.49% of Gamco Investors' entire 13F stock portfolio.
10. ViacomCBS Inc. (NASDAQ: VIACA)
Market Value: $27.19 Billion
Despite the stock rallying of 25% in the past 12 months, the stocks are surprisingly cheaply priced for the size and scope of the company. The company also offers a dividend of over 2% which has been steadily increasing in the past 2 consecutive years.
Revenue of the first quarter was $7.41 billion, 14% more than the revenue of around the same time last year. These numbers are helped greatly by the increase in online streaming services the company has been expanding on.
The company is a diversified multinational mass media and entertainment conglomerate that was formed through the merger of the CBS Corporation and Viacom in December 2019.
Bottom Line
And those were the main bargain stocks of 2021. Buying stocks for less than their perceived value should really be a no-brainer for any investor.
That being said, there's a very big difference in buying a stock that's under-priced compared to simply buying a stock with little value.
Knowing which is which will take research and a little experience but, when done right, you'll have stocks that are worth more than what they bargained for.