10 Cheap Penny Stocks to Buy According to Hedge Funds

2. Commscope Holding Company Inc. (NASDAQ:COMM)

Forward P/E Ratio as of March 11: 3.72

Share Price as of March 11: $4.66

Number of Hedge Fund Holders: 32

Commscope Holding Company Inc. (NASDAQ:COMM) provides infrastructure solutions for communications, data center, and entertainment networks. It operates through three segments: CCS, NICS, and ANS. It delivers a range of products and services, from fiber optic and copper connectivity to indoor cellular solutions and access network equipment.

The expanding data center market directly impacts this company’s Connectivity and Cable Solutions (CCS) segment. In 2024, the CCS segment’s full-year revenue increased by 4.5% year-over-year. Specifically, the enterprise fiber business, which focuses on data center products, generated $623 million in revenue. This was a 73% year-over-year increase.

Q4 2024 saw even more substantial growth, with CCS revenue up 36% as compared to the year-ago period. The enterprise fiber business alone generated $202 million in revenue during this quarter, a 96% increase from the same period in 2023. Commscope Holding Company Inc. (NASDAQ:COMM) is actively investing in expanding its production capacity to meet the growing demand from the data center market, which is projected to grow by over 30% annually. The company is currently in the midst of a capacity expansion that is expected to add $300 million in revenue.