10 Most Undervalued Penny Stocks to Buy According to Hedge Funds

3. Playtika Holding Corp. (NASDAQ:PLTK)

Share Price as of April 18: $4.93

Forward P/E ratio as of April 18: 9.12

Number of Hedge Fund Holders: 32

Playtika Holding Corp. (NASDAQ:PLTK) develops mobile games in the US, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and DTC platforms.

In Q4 2024, the company’s Bingo Blitz made $159.1 million in revenue, which was up 5.8% year-over-year. Notably, the DTC business for Bingo Blitz achieved another record quarter. Playtika highlighted the underlying growth in year-over-year average daily paying users for Bingo Blitz, which showed an expanding player base for the company’s largest game.

The company has a portfolio of multiple game titles that attract more than 20 million monthly active users. Playtika Holding Corp. (NASDAQ:PLTK) is investing in its existing portfolio, with a particular focus on titles that hold leadership positions and exhibit strong growth potential, such as Bingo Blitz. On March 26, Bank of America Securities upgraded the stock’s rating from Underperform to Buy and raised its price target from $6 to $6.50.