10 Most Undervalued Penny Stocks to Buy According to Hedge Funds

6. Sabre Corp. (NASDAQ:SABR)

Share Price as of April 18: $2.03

Forward P/E ratio as of April 18: 11.27

Number of Hedge Fund Holders: 31

Sabre Corp. (NASDAQ:SABR) operates as a software and technology company for the travel industry. It has two segments: Travel Solutions and Hospitality Solutions. Some of its products include commercial & operations products and data-driven intelligence solutions. It also has the SabreMosaic, which is an order retailing platform for airlines to create, sell, and deliver personalized content to travelers.

The company’s Hospitality Solutions segment achieved a record-high total revenue in 2024. The Q4 Hospitality Solutions revenue alone was up 8% year-over-year, which was driven by higher Central Reservation System (CRS) transactions. This is a computerized system that manages hotel room inventory and reservations. The revenue acceleration was also fueled by businesses like the Hyatt deployment, where Sabre’s CRS technology is implemented for the global Hyatt Hotels.

On April 1, Bernstein upgraded Sabre Corp. (NASDAQ:SABR) to Market Perform from Underperform while lowering the price target to $3.50 from $3.60. Reuters reported that the company is engaging Evercore to explore the sale of its hospitality suite SynXis. The company’s SynXis Retail Studio enables hoteliers to enhance revenue through personalized offers. The firm said that a positive stance on Sabre could come from an enhanced sale and commercial momentum in the remaining businesses.