In this article, we will take a look at the 5 most undervalued blockchain stocks to buy according to hedge funds. To see more such companies, go directly to 11 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds.
5. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 36
Forward P/E Ratio: 6.17
Hewlett Packard Enterprise Company (NYSE:HPE) is a Texas-based company. This technology giant is heavily involved in the blockchain industry and offers several solutions related to distributed ledger technology, blockchain solutions, and related software. Hewlett Packard Enterprise Company (NYSE:HPE) has listed details of its blockchain projects on its website.
As of the end of the third quarter of 2022, 36 hedge funds out of the 920 funds tracked by Insider Monkey reported owning Hewlett Packard Enterprise Company (NYSE:HPE) shares.
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 69
P/E Ratio (TTM): 14.86
Intel Corporation (NASDAQ:INTC)’s technologies are widely used in the crypto space. Last year, Intel Corporation (NASDAQ:INTC) said that it intends to contribute to the blockchain world with its energy-efficient accelerators. Fulfilling its promise, Intel Corporation (NASDAQ:INTC) in April launched Intel its Blockscale Technology for energy efficient blockchain hashing.
Intel Corporation (NASDAQ:INTC) said that Argo Blockchain, Block Inc., Hive Blockchain Technologies and GRIID Infrastructure will be the first customers of Intel Blockscale ASIC, which can power up to 580 GH/s hash rate.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 97
P/E Ratio: 11.47
Bank of America Corporation (NYSE:BAC) ranks on our list of undervalued blockchain stocks because the company is positioned to invest in the blockchain payments industry.
Bank of America Corporation (NYSE:BAC)’s CEO Brian Moynihan last year said that the company has hundreds of blockchain patents. The executive noted that the bank can begin to deploy these technologies as the industry becomes mature.
In his prepared remarks for the Committee of Financial Services, US House of Representatives, Moynihan said
“We continue to evaluate applications of new technologies that have the potential to deliver value to our customer and clients, including distributed ledger technology (DLT) and blockchain. While Bank of America holds more than 60 blockchain patents and has used DLT within existing products, we still have not found a use case at scale.”
Bank of America Corporation (NYSE:BAC) is one of the most popular financial stocks among the elite hedge funds tracked by Insider Monkey. Out of the 920 hedge funds in Insider Monkey’s database, 97 hedge funds reported owning stakes in Bank of America Corporation (NYSE:BAC) at the end of the third quarter of 2022. The biggest stakeholder in Bank of America Corporation (NYSE:BAC) was Warren Buffett’s Berkshire Hathaway which had a $30.5 billion stake in the bank at the end of September 2022.
Ariel Investment made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2022 investor letter:
“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
P/E Ratio: 11.82
JPMorgan Chase & Co. (NYSE:JPM) has an entire unit dedicated to blockchain. The bank’s unit called Onyx is working on new technologies and applications to bring blockchain-based solutions into production. JPMorgan Chase & Co. (NYSE:JPM) says it is the first global bank to offer a blockchain-based platform for wholesale payments transactions.
As of the end of the third quarter of 2022, 110 hedge funds reported owning stakes in JPMorgan Chase & Co. (NYSE:JPM), according to Insider Monkey’s database of 920 hedge funds’ holdings.
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 126
Forward P/E Ratio: 17.33
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the key players in the online payments and blockchain space. Last year, CoinDesk reported that PayPal Holdings, Inc. (NASDAQ:PYPL) Ventures participated in a $200 million funding round for Aptos Labs, a startup that was working on Facebook’s Diem blockchain. PayPal Holdings, Inc. (NASDAQ:PYPL) is investing heavily in the crypto and blockchain segments. It has an entire division called Blockchain, Crypto and Digital Currencies.
PayPal Holdings, Inc. (NASDAQ:PYPL) recently announced that it will lay off about 7% of its global workforce as the company joins the burgeoning list of tech companies that are cutting costs and tightening their belt to brace for a recession.
Hedge funds are piling into PayPal Holdings, Inc. (NASDAQ:PYPL). As of the end of the third quarter of 2022, 126 hedge funds tracked by Insider Monkey reported owning stakes in PayPal Holdings, Inc. (NASDAQ:PYPL), up from 97 funds in the previous quarter.
RGA Investment Advisors made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2022 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) suffered with the slowdown in e-commerce, yet still will have outgrown e-commerce when we see final 2022 numbers. Much like Amazon, PayPal invested far too aggressively on the expectation of sustained elevated growth rates in e-commerce and unfortunately, unlike with Amazon, PayPal’s investment was on ancillary product excursions from which the company is already retrenching. The good news is that with this retrenchment, the company should once again return to its recipe of healthy top line growth and incremental margin leverage, but rather than grow back into their old margin structure they will have to cost-cut their way there.”
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