16 Most Undervalued Tech Stocks To Buy Now

4. Emerson Electric Co. (NYSE:EMR)

Short % of Shares Outstanding: 1.23%

Number of Hedge Fund Holders: 51

Forward Price to Earnings Ratio as of August 28: 18.97

Emerson Electric Co. (NYSE:EMR) is a leading international technology and engineering conglomerate. The company operates its core business in two main industries, the automation solutions, and commercial and residential solutions market.

The strategic strength of the company stems from its clear vision of becoming a leader in automation solutions. Management has shown dedication to this commitment by developing a robust portfolio of automation technologies that are being widely used in various industries globally. Moreover, it has also finalized its exit agreement from the Copeland business to focus on higher growth markets.

It has already positioned itself to lead the automation market, currently, it controls more than 60,000 wind turbines globally, automates one of the largest green hydrogen facilities, powers automation for more than 50% of North America’s power generation, and most notably around 69% of the electric vehicles manufactured in 2023 were automated using Emerson Electric Co’s. (NYSE:EMR) technology.

Synonymous with its market-leading position, its FQ3 2024 financial results are also encouraging. Its underlying orders and sales grew 3% year-over-year, delivering gross profit margins of 52.8%. Moreover, it also surpassed its adjusted EPS guidance by posting $1.42 earnings while the expectations were between $1.38 and $1.42.

Emerson Electric Co. (NYSE:EMR) also demonstrated strong free cash flow generation of $975 million during the quarter and has an order backlog of more than $7.4 billion, indicating long-term growth prospects.

EMR is one of the best-undervalued tech stocks to buy now, with a forward Price to Earnings ratio of 19%, a 4% discount to its sector. Moreover, analysts expect its earnings to grow by 23.4% during the year to reach $5.48.

It was held by 51 hedge funds in Q2 2024, with total stakes worth $1.13 billion. Millennium Management is the top shareholder of the company with a position worth $173 million.