In this article, we will take a look at the 5 most undervalued EV stocks to buy according to hedge funds. To see more such companies, go directly to 11 Most Undervalued EV Stocks To Buy According To Hedge Funds.
5. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 40
Connecticut-based Amphenol Corporation (NYSE:APH) makes electronic and fiber optic connectors, cable and interconnect systems such as coaxial cables. Amphenol Corporation (NYSE:APH) says it has also developed advanced technology solutions for hybrid and electric vehicles. Amphenol Corporation (NYSE:APH)’s parts and related technologies are expected to see an increased demand from EV companies in the future. Amphenol Corporation (NYSE:APH) is also a dividend payer. In February, Amphenol Corporation (NYSE:APH) declared a quarterly dividend of $0.21 per share, in-line with the previous dividend. Forward dividend yield came in at 1.02%. The dividend is payable on April 12 to shareholders of record as of March 21.
During the fourth quarter of 2022, Amphenol Corporation (NYSE:APH)’s adjusted EPS came in at $0.78, beating estimates by $0.03. Revenue in the quarter increased by about 6.9% on a YoY basis to reach $3.24 billion, beating estimates by $90 million.
Amphenol Corporation (NYSE:APH) is also popular among hedge funds. 40 hedge funds tracked by Insider Monkey as of the end of the fourth quarter of 2022 had stakes in the company. The total value of these stakes was $777 million.
Here is what Mawer Investment Management has to say about Amphenol Corporation (NYSE:APH) in its Q3 2022 investor letter:
“With the backdrop of a more uncertain economic environment, there were several companies in our portfolios that performed well over the quarter. Businesses we would define as “boring” were some of the stronger performing stocks in the quarter. Holdings such as manufacturer of electronic connectors and cables Amphenol (NYSE:APH), posted steady increases in revenues and operating profits reflecting the stability of their businesses.”
4. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 45
Netherlands-based NXP Semiconductors N.V. (NASDAQ:NXPI) is one of the most notable companies set to profit from the ongoing EV revolution. NXP Semiconductors N.V. (NASDAQ:NXPI)’s products and solutions span across the entire EV ecosystem, including batteries, fast charging, and load balancing across entire grids.
Last month, NXP Semiconductors N.V. (NASDAQ:NXPI) announced that it was partnering with e-mobility battery management software company Qnovo. According to the partnership, NXP Semiconductors N.V. (NASDAQ:NXPI) will offer Qnovo’s new SpectralX Battery Management Software in its e-mobility enablement solutions for electric vehicles, including two-wheeled and other EVs.
Earlier this year, NXP Semiconductors N.V. (NASDAQ:NXPI) announced a quarterly dividend of $1.014 per share, which was a massive, 20% increase from the prior dividend. The dividend is payable on April 15.
As of the end of the fourth quarter of 2022, 45 hedge funds tracked by Insider Monkey reported owning stakes in NXP Semiconductors N.V. (NASDAQ:NXPI).
3. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 46
Albemarle Corporation (NYSE:ALB) is one of the obvious names to profit from the EV boom in the world, thanks to its dominance in the lithium production space. Over the past 12 months, Albemarle Corporation (NYSE:ALB) has gained about 36%. Still, its PE ratio stands at 11, making it a relatively undervalued stock. Of the 943 hedge funds tracked by Insider Monkey, 46 hedge funds reported owning stakes in Albemarle Corporation (NYSE:ALB). The biggest stakeholder of Albemarle Corporation (NYSE:ALB) during this period was Ken Griffin’s Citadel Investment Group which had a $115 million stake in the company.
Last month, Wells Fargo added Albemarle Corporation (NYSE:ALB) to its Signature Picks. The bank said that its “materials sector reshuffling is driven by relative attractiveness and upside potential.”
Albemarle Corporation (NYSE:ALB) recently declared a quarterly dividend of $0.40 per share, which was a 1.3% increase from the previous dividend. The dividend is payable on April 3 to shareholders of record as of March 17.
Carillon Tower Advisors made the following comment about Albemarle Corporation (NYSE:ALB) in its Q4 2022 investor letter:
“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The stock gave back some of its recent gains amid investor concerns about how the future price of lithium could be affected by a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and Albemarle plays a critical role in the battery value chain and remains well-positioned for the overall continued global adoption of EVs.”
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 62
Even though Intel Corporation (NASDAQ:INTC) is under pressure amid rising competition and challenging industry conditions in the semiconductor space, the company is set to see a huge demand of its products from the EV sector. Last year, Intel Corporation (NASDAQ:INTC) announced to form a new division to design and sell chips and processors for electric and autonomous cars.
At the time Intel Corporation (NASDAQ:INTC)’s CEO Pat Gelsinger said that the company was making a foray into the EV space because the demand for automotive silicon is expected to nearly double to $115 billion by 2030.
As of the end of the fourth quarter of 2022, Intel Corporation (NASDAQ:INTC) was one of the most popular semiconductor stocks among the 943 hedge funds tracked by Insider Monkey. 62 hedge funds had stakes in Intel Corporation (NASDAQ:INTC) at the end of the last quarter of 2022. The biggest stakeholder of Intel Corporation (NASDAQ:INTC) was D E Shaw which had a $354 million stake in the company.
ClearBridge Investments made the following comment about Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter:
“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 80
General Motors Company (NYSE:GM) is among the biggest car companies in the world that have committed to the all-electric future of the mobility segment. General Motors Company (NYSE:GM) already has several electric vehicles available for customers. Recently, it was reported that General Motors Company (NYSE:GM) was cutting about 500 executive-level jobs as it prepares for the electrification transition from legacy cars business.
General Motors Company (NYSE:GM) is taking notable steps to increase its presence in the EV sector. General Motors Company (NYSE:GM) recently became the biggest stakeholder of Lithium Americas (NYSE:LAC) through its investments that will accelerate the development of the Thacker Pass project in Nevada.
In February, it was reported that General Motors Company (NYSE:GM) was mulling buying a stake in Vale’s (NYSE:VALE) base metals unit.
General Motors Company (NYSE:GM) ranks 1st in our list of the most undervalued EV stocks to buy according to hedge funds.
Diamond Hill made the following comment about General Motors Company (NYSE:GM) in its Q3 2022 investor letter:
“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”
You can also take a peek at 15 Best Short-Term Stocks to Buy and 10 Best Stocks to Buy for High Returns.
