3 cheap 'stock'-ing stuffers Wall Street is bullish on

Key Points

• Haleon is a UK-based consumer healthcare company that U.S research firms have started paying closer attention to this year.
• At less than $9.00 a share, Japanese automaker Subaru is worth a look under the hood — especially given its low float.
• At a mere 2x forward earnings, BHC is one of the cheapest stocks in the pharma space and the entire U.S. mid-cap universe.

November certainly didn’t disappoint.

Known for historically being the strongest month of the year for U.S. stocks, the Dow and S&P 500 both gained nearly 9% last month. The Nasdaq, almost 11%. Softer economic data has brought tidings of joy for investors banking on a less hawkish Federal Reserve.

Whether or not the market's festive mood carries into December will have a lot to do with the holiday shopping season. On the heels of record Black Friday and Cyber Monday spending, corporate America is hoping the shopping spree spills over into more than just retail and e-commerce.

According to Rolling Stone, many of this year’s most popular gifts are top-rated Amazon picks and viral TikTok sensations. From $20 BRONAX Pillow Slippers to $600 Apple AirPods Max, there’s something for everyone. 

But for budget-minded investors, the wishlist isn’t so extensive. With the S&P 500 climbing 11% over the last five weeks and nearing record highs, stock valuations and prices are no longer on the discount rack. In turn, Wall Street sentiment has turned more cautious — especially as Fed members leave future rate hikes on the table.

There are, however, exceptions.

Using MarketBeat’s advanced stock research tools, we’ve uncovered a handful of low-priced stocks that the Street loves. Each of these companies have been the subject of bullish commentary in recent days and are trading under $10. Call them the ideal ‘stock’-ing stuffers for those hard to shop for traders.

What does Haleon do? 

Haleon plc NYSE: HLN is a U.K.-based consumer healthcare company that sells a range of staples and over-the-counter medicines worldwide. It is the name behind several household brands popular with American consumers such as Sensodyne toothpaste, Centrum vitamins and Flonase allergy relief. Even Advil and Tums. Who knew a British company makes all of these? Few U.S. investors do. And that’s why the stock has flown under the radar since splitting off from U.K. pharmaceutical giant GSK in July 2022. 

This year, U.S research firms have paid closer attention to Haleon, and the sentiment has been largely positive. Morgan Stanley started covering the stock last month with an Overweight rating. Argus Research considers it a buy because of Haleon’s brand strength and recently implemented dividend. This defensive stock won’t make you rich, but like Theraflu, will help you sleep better at night.       

Is Subaru stock a good investment?

Subaru Corporation OTCMKTS: FUJHY cars are seen all over U.S. roads these days, but you don’t hear much about them from an investment perspective. At less than $9.00 a share, the Japanese automaker is worth a look under the hood — especially given its low float. 

Financial institutions, foreign entities and Japanese investors own the vast majority of the stock. Toyota holds roughly 20%. Individuals own less than 10% of it, meaning there aren’t many shares to go around, and the name can be volatile.

The American Depository Receipt (ADR), which trades on the over-the-counter (OTC) exchange, has pulled back from its 2023 high of $10.50. Subaru posted 26% revenue growth in the first half of this year and is forecasting 57% operating profit growth for all of 2023. With all eyes on Tesla, Subaru’s next financial update could quietly spark a rally few will ever see.   

Is Bausch Health Companies undervalued?

Bausch Health Companies Inc. NYSE: BHC is a Canadian maker of pharmaceuticals and OTC medicines for a range of therapeutic purposes. The company is coming off a solid Q3 earnings beat that was driven by revenue growth in all five operating units, including its core Salix gastroenterology business. The broad-based growth and management’s upgraded 2023 guidance have Wall Street warming up to the name.

The biggest bull is Jeffries, who sees the stock more than doubling to $16.00 within the next 12 months. Much of BHC’s growth fortunes ride on Salix — but also on new drug approvals. The dermatology business got a boost this fall when the FDA approved acne treatment Cabtreo. It is the first FDA-approved fixed-dose, triple-combination topical treatment for the condition.

At a mere 2x forward earnings, BHC is one of the cheapest stocks in the pharma space and the entire U.S. mid-cap universe. Considering it is generating growth in multiple areas and has pipeline momentum, BHC looks woefully undervalued. The company has some legal hurdles around the key encephalopathy drug Xifazan to get past, but if it does, the stock could be off to the races.