10 Most Undervalued Stocks to Buy for Under $10

2. BGC Group (NASDAQ:BGC)  

Number of Hedge Fund Investors: 33  

Forward P/E Ratio as of October 8: 10.51  

Stock Price as of October 8: $9.71  

BGC Group (NASDAQ:BGC) is a global brokerage firm that provides services in fixed income, foreign exchange, energy, commodities, shipping, and equities to major clients such as investment banks, trading firms, hedge funds, and governments. The company operates through several subsidiaries and maintains a strong presence in international markets.

On September 24, BGC Group (NASDAQ:BGC) announced the successful launch of the FMX Futures Exchange, a new platform for trading Secured Overnight Financing Rate (SOFR) futures and U.S. treasury futures. This exchange is designed to offer clients a more efficient and cost-effective means to manage interest rate risks, with a cutting-edge trading system that allows for fast trade execution.

The FMX Futures Exchange has partnered with LCH Limited, a prominent derivatives clearing company based in London, to offer clearing and settlement services. This collaboration will allow clients to take advantage of LCH’s extended clearing capabilities, including cross-margining between U.S. interest rate futures and swaps, leading to significant capital savings by reducing collateral requirements. The exchange’s global connectivity further enhances its appeal by providing access to worldwide liquidity for trading interest rate futures.

The launch of the FMX Futures Exchange is expected to positively impact BGC Group’s (NASDAQ:BGC) business by creating new revenue streams through trading and clearing fees, while also attracting new clients and boosting the company’s market share in the derivatives market.

BGC Group’s (NASDAQ:BGC) stock currently trades at a forward P/E ratio of 10.51, reflecting a 12.30% discount to its sector median of 11.98. Analysts anticipate an 11.5% earnings growth for the company this year.