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Yahoo
02-05-2025
- Business
- Yahoo
Quaker Chemical Corporation (KWR): Among the Oversold Global Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Quaker Chemical Corporation (NYSE:KWR) stands against other oversold global stocks to buy according to hedge funds. Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets. The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let's dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market. READ ALSO: First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here's an excerpt from their recent publication: 'Facts continue to change — there is indication that the 'detox period' may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear. While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.' Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America's supply chain management company's CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%. Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production. We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market. A close up view of a specialized chemical compound in the lab. To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey's proprietary database of hedge funds' ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Quaker Chemical Corporation (NYSE:KWR) is a global provider of industrial products for heavy manufacturing sectors. Its product portfolio is diverse and centered around metal removal fluids, corrosion inhibitors, forming and forging fluids, hydraulic fluids, rolling lubricants, etc. KWR serves industries such as steel, aluminum, automotive, aerospace, mining, and metalworking. Quaker Chemical Corporation (NYSE:KWR) faced challenging market conditions in 2024, with softness across end markets and regions, but still delivered solid performance through portfolio strength and focus on improving customer operations and productivity. The company generated $444 million in Q4 net sales, down 5% YoY, and $311 million in adjusted EBITDA for the full year 2024. Despite market headwinds, KWR maintained stable volumes through market share gains and new business wins, outperforming aggregate end markets, which declined in the low to mid-single digits. The company also generated a strong operating cash flow of $205 million in 2024, enabling the execution of capital allocation priorities, including organic growth investments, dividend increases, debt reduction, acquisitions, and share repurchases. Looking ahead to 2025, Quaker Chemical Corporation (NYSE:KWR) expects modest 1-2% growth in end markets, weighted towards the second half of the year. The company anticipates delivering revenue, adjusted EBITDA, and earnings growth in 2025, along with another strong year of cash flow generation. Management is focused on three key priorities: returning to growth, reducing complexity to unlock leverage in the business model, and disciplined capital deployment to enhance shareholder value. This includes globalizing operations, aligning resources with faster-growing regions, simplifying the organization, and refocusing on customer intimacy to drive organic growth and market share gains. All in all, KWR's ability to gain market share positions it well for a potential recovery in industrial activity after the current economic slowdown is navigated, which makes it one of the oversold stocks to consider right now. Overall, KWR ranks 11th on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of KWR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KWR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Eastman Chemical Company (EMN): Among the Oversold Global Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Eastman Chemical Company (NYSE:EMN) stands against other oversold global stocks to buy according to hedge funds. Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets. The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let's dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market. READ ALSO: First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here's an excerpt from their recent publication: 'Facts continue to change — there is indication that the 'detox period' may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear. While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.' Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America's supply chain management company's CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%. Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production. We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market. A close-up of a chemist in a white lab coat, mixing raw materials for specialty products. To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey's proprietary database of hedge funds' ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Eastman Chemical Company (NYSE:EMN) is a global specialty materials company producing a wide array of products, including specialty plastics, coatings, adhesives, and cellulose-based fibers, serving industries such as transportation, construction, consumer goods, agriculture, and healthcare. EMN has a significant global footprint, with manufacturing facilities and joint ventures in over 10 countries, supplying products to customers worldwide. Eastman Chemical Company (NYSE:EMN) faced challenges in Q1 2025 due to trade tensions and tariffs, particularly between the US and China. The company revised its Renew revenue guidance from $75-100 million to $50-75 million due to uncertainties in consumer durable markets. Despite these challenges, EMN's methanolysis program at Kingsport is performing well operationally, with high production rates and improved feedstock efficiency. The company is on track to achieve $50 million in EBITDA from manufacturing cost improvements. Eastman Chemical Company (NYSE:EMN) is taking several mitigating actions to address the current market uncertainties, including optimizing capital expenditures and focusing on cash generation. The company reduced its capital expenditure guidance from $750 million to $550 million, with the Longview, Texas project being a significant part of this reduction. EMN remains confident in its strategy and ability to navigate through potential downside scenarios, which secures its place on our list of most oversold stocks to buy. The company's diversified portfolio, vertical integration, and focus on innovation are expected by management to help offset some of the challenges faced in the current economic environment. Overall, EMN ranks 8th on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of EMN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EMN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
LKQ Corporation (LKQ): Among the Oversold Global Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where LKQ Corporation (NASDAQ:LKQ) stands against other oversold global stocks to buy according to hedge funds. Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets. The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let's dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market. READ ALSO: First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here's an excerpt from their recent publication: 'Facts continue to change — there is indication that the 'detox period' may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear. While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.' Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America's supply chain management company's CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%. Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production. We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market. A worker in a factory using a robotic arm to assemble automotive body panels. To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey's proprietary database of hedge funds' ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). LKQ Corporation (NASDAQ:LKQ) is a global distributor of alternative and specialty automotive parts, providing recycled, aftermarket, refurbished, and remanufactured components for vehicles. The company serves a diverse customer base, including collision and mechanical repair shops, dealerships, and retail consumers across North America, Europe, and Taiwan. LKQ Corporation (NASDAQ:LKQ) posted mixed Q1 2025 results as revenue softness in North America and Europe was partially offset by operational cost savings and share repurchases. North American organic revenue fell 4.1% due to declining repairable claims driven by higher insurance premiums and falling used car prices, though the company outperformed the market by 570 basis points, signaling share gains. European revenues also declined, impacted by weak consumer sentiment and unseasonably mild weather. Management highlighted productivity efforts, SKU rationalization, and improved private label penetration as ways to maintain margin stability, especially in Europe. Tariffs are a growing concern, particularly for LKQ Corporation (NASDAQ:LKQ)'s collision parts sourced from Asia, although recycled parts (a strength of LKQ) may see increased demand as price competitiveness becomes more pronounced. Specialty segment sales continued to struggle due to inflation and weaker discretionary consumer spending. Management remains committed to a simplification strategy, including recent divestitures and operational streamlining. With a tariff task force in place, LKQ aims to mitigate supply chain risks and protect margins through lean management, vendor negotiations, and pricing power where possible, securing its fifth place on our list of oversold stocks to buy. Overall, LKQ ranks 5th on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of LKQ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LKQ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-05-2025
- Business
- Yahoo
ManpowerGroup Inc. (MAN): Among the Oversold Global Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where ManpowerGroup Inc. (NYSE:MAN) stands against other oversold global stocks to buy according to hedge funds. Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets. The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let's dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market. READ ALSO: First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here's an excerpt from their recent publication: 'Facts continue to change — there is indication that the 'detox period' may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear. While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.' Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America's supply chain management company's CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%. Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production. We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market. A business executive in a board room, discussing the career management strategies of the company. To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey's proprietary database of hedge funds' ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). ManpowerGroup Inc. (NYSE:MAN) is a global leader in workforce solutions, providing staffing, recruitment, outsourcing, and talent management services across more than 80 countries and territories. Serving a broad spectrum of industries, the company's role is to connect millions of individuals with employment opportunities annually. The US-based company ranked fourth on our recent list of Top 20 Falling Stocks with Unusual Volume. ManpowerGroup Inc. (NYSE:MAN) reported first quarter 2025 revenue of $4.1 billion, down 5% YoY in constant currency. The company's adjusted EBITDA was $52 million, representing a 32% decrease in constant currency, while Adjusted EPS decreased 51% YoY to $0.44. The company faced a challenging environment in Europe and North America, while demand for services in Latin America and the Asia Pacific Middle East remained good. Permanent recruitment softened further, and reduced outplacement volumes impacted margins. Despite the current challenges, ManpowerGroup Inc. (NYSE:MAN) remains focused on its strategic plan to diversify, digitize, and innovate. The company is implementing AI and Agentic AI as part of its technology roadmap. MAN continues to transform its business, investing in technology, process, and talent across its brands to serve client needs globally. The company is taking actions to adjust its cost base and add resources to respond to demand opportunities. Management remains confident in its ability to manage the business for short-term performance and long-term success, despite the uncertain times. With at least 37 hedge funds owning stakes in the company at the end of Q4 2024, MAN is one of the oversold stocks to buy according to hedge funds. Overall, MAN ranks 7th on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of MAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
PepsiCo, Inc. (PEP): The Oversold Global Stock to Buy According to Hedge Funds
We recently published a list of 11 Oversold Global Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against other oversold global stocks to buy according to hedge funds. Global stocks are businesses that have a diversified revenue base and do not rely entirely on one particular region or country. Their advantage is the ability to mitigate idiosyncratic risk, which arises from a specific country. Imagine a hypothetical scenario in which the US enters an economic recession that erodes consumer purchasing power, slows down industrial and manufacturing activity. The revenue growth and earnings of a US-based company will tank instantly, while a global stock will be able to compensate for the decline in the US business with growth in emerging or other developed markets. It therefore becomes obvious that global stocks are particularly attractive during times of heightened uncertainty when investors seek flight into safer assets. The calendar 2025 perfectly fits the description of a market that would favor global stocks. The situation becomes even more attractive as many of the safer global stocks became oversold due to the recent tariff turmoil, making them potentially more attractive from a valuation standpoint. At the same time, Yardeni Research data showed that the net earnings revision index has been in only mild negative territory in the last 2 quarters. What this means is that leading analysts have still not completely bought into the possibility that the US stock market will enter a recession in 2025. Let's dive deeper into economic indicators and see whether analysts are wrong, and the US market is indeed at the brink of a recession, which would favor global stocks if compared to the rest of the market. READ ALSO: First, we want to briefly touch on the tariff dilemma and emphasize that their danger is real and will likely have a significant negative impact on GDP growth and private spending. Our thesis is reinforced by the reputable J.P. Morgan bank – here's an excerpt from their recent publication: 'Facts continue to change — there is indication that the 'detox period' may be over and the latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation. However, the damage to the business cycle still remains unclear. While tariff rates are expected to come down from current extreme levels, they are unlikely to be fully removed (China has been benefiting significantly from transshipment substitution). These are encouraging developments, but clarity and closure are still needed to solidify a more positive outlook and avoid further damage to the business cycle.' Second, recent batches of economic indicators are highly disappointing. After negative data from the Philadelphia Fed, the more recent Dallas Fed data shows that general business activity, new orders, employment, and outlook are all contracting. With such sharp deterioration in economic activity in large states, odds are that Q1 2025 GDP data will mark the first of two required quarters of negative growth to declare a recession. The slowing economy is indirectly confirmed by leading executives of shipping companies, such as America's supply chain management company's CEO claimed that in the three weeks since the tariffs took effect, ocean-container bookings from China to the US are down by more than 60 percent. Some economists warn that the consequences could be empty shelves in US stores, similar to the onset of the COVID pandemic, when markets tanked by more than 30%. Third, the consequences of lower shipments from China could be devastating for the US economy, given that hundreds of billions worth of goods flow through each year. The transportation sector already feels the consequences as one significant player lost a quarter of its value after reporting declining shipping volumes during its most recent earnings call. A prominent American capital market company recently reported that airfreight volumes from China have also stopped, as higher value-added products are seeing less importation. And the list goes on and on – countless industries are likely to be impacted by shortages of key supplies, or input prices that are too expensive to sustain production. We do not intend to make apocalyptic predictions for the US economy, and especially for the stock market. History shows that regardless of how deep a recession is, prices always recover quite quickly and reach new highs. The key takeaway for readers is that many economic indicators and indirect signals suggest that the US economy is in trouble, and the outlook is uncertain. In this case, a smart move would be to diversify away some of the US exposure by investing in oversold global stocks that have the potential to better hold their value during a potential bear market. A close up of a glass of a refreshing carbonated beverage illustrating the company's different beverages. To compile our list of oversold global stocks, we used a screener to identify stocks with a Relative Strength Index (RSI) below 40. Then we manually identify the companies that drive at least 40% of their revenue from outside the US. Finally, we compared the list with Insider Monkey's proprietary database of hedge funds' ownership as of the fourth quarter of 2024 and included in the article the top 11 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). PepsiCo, Inc. (NASDAQ:PEP) is a food and beverage company known for iconic beverage and snack brands like Pepsi, Mountain Dew, Gatorade, Lay's, and Doritos. PEP is a global player as its products are distributed in over 200 countries. The company also ranked ninth on our recent list of 10 Stocks Analysts are Talking About Amid Trump's Tariff War. PepsiCo, Inc. (NASDAQ:PEP) reported modest Q1 2025 performance, although volumes remain weak, early signs from price-pack adjustments suggest improved unit performance, especially in convenience channels. Leadership emphasized ongoing investments in consumer-permissible and functional snacks while working to stabilize service disruptions caused by a recent SAP implementation. Portfolio expansion efforts via acquisitions were cited as critical to maintaining relevance with evolving consumer preferences. Despite maintaining its top-line growth guidance, PepsiCo, Inc. (NASDAQ:PEP) revised its full-year EPS outlook due to new tariff costs, consumer uncertainty, and subdued performance in some products. Management stressed that these headwinds are being actively mitigated through strategic pricing, execution efficiency, and selective reinvestments in core brands. International markets remain a bright spot, with countries like India and Brazil showing strong momentum, although China and Mexico demonstrated relative softness. Overall, the company remains focused on balancing short-term pressures with long-term brand health and margin expansion. Overall, PEP ranks 1st on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
