5 Most Undervalued Small-Cap Stocks To Buy According To Hedge Funds

1. CONSOL Energy Inc. (NYSE:CEIX)

Number of Hedge Fund Holders: 31

CONSOL Energy Inc. (NYSE:CEIX) has gained a whopping 162% over the past year. CONSOL Energy Inc. (NYSE:CEIX) is still trading at an attractive valuation. It is also a high dividend energy stock. CONSOL Energy Inc. (NYSE:CEIX)’s dividend yield stands at over 7% as January 30. The biggest growth catalyst for CONSOL Energy Inc. (NYSE:CEIX) is the rising demand of coal all over the world. Coal came back into the limelight as countries struggled to meet their energy demand following the geopolitical crisis in Europe. Analysts think coal will continue to remain in demand in 2023 and beyond.

CONSOL Energy Inc. (NYSE:CEIX) is also popular among smart money. Of the 920 hedge funds tracked by Insider Monkey, 31 hedge funds had stakes in CONSOL Energy Inc. (NYSE:CEIX) at the end of the third quarter, significantly up from 23 funds in the previous quarter.

Greenlight Capital made the following comment about CONSOL Energy Inc. (NYSE:CEIX) in its Q3 2022 investor letter:

“CONSOL Energy Inc. (NYSE:CEIX) shares rose from $49.38 to $64.32. As we wrote last quarter, we expect the company to generate approximately $50 per share in after-tax free cash flow by the end of 2023. The company paid its first dividend of $1 per share in August and also announced a policy of distributing at least 35% of its free cash flow to its shareholders. We would emphasize the “at least” part and see room for the percentage to expand as the cash flows materialize. Coal markets have remained quite strong and visibility is improving, such that 2024 looks to us like another strong year.”

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