This article presents an overview of the 5 Most Undervalued Value Stocks To Buy According To Hedge Funds. For a detailed overview of the 16 such stocks read our article, 16 Most Undervalued Value Stocks To Buy According To Hedge Funds.
5. General Motors Corp (NYSE:GM)
Number Of Hedge Fund Investors: 66
Recently, Mizuho upgraded General Motors Corp (NYSE:GM) stock to Buy from Neutral. The firm’s analyst Vijay Rakesh said the UAW strike is now behind us, and vehicle production at General Motors Corp (NYSE:GM) has restarted.
General Motors Corp (NYSE:GM) is also a popular car stock among the elite hedge funds tracked by Insider Monkey. 66 hedge funds tracked by Insider Monkey had stakes in General Motors Corp (NYSE:GM). The biggest stakeholder of General Motors Corp (NYSE:GM) was Natixis Global Asset Management’s Harris Associates, which owns a $1.2 billion stake in the company.
Diamond Hill Large Cap Strategy made the following comment about General Motors Company (NYSE:GM) in its Q3 2023 investor letter:
“Several of our bottom contributors were in the consumer area, including auto retailer CarMax and auto manufacturer General Motors Company (NYSE:GM). In general, rising interest rates have priced out a large portion of the population who simply can’t afford to buy a car given where financing costs stand today. These challenges have weighed on both companies. General Motors was also impacted by the UAW strike, which put a damper on the automotive industry in general.”
4. Teck Resources Ltd (NYSE:TCK)
Number Of Hedge Fund Investors: 75
Teck Resources Ltd (NYSE:TCK) in October posted Q3 results. Adjusted EPS in the quarter came in at C$0.76. Revenue fell 15.5% year over year to C$3.6 billion.
A total of 75 hedge funds in Insider Monkey’s database reported having stakes in Teck Resources Ltd (NYSE:TCK) as of the end of the September quarter. The biggest stakeholder of the firm was Eric W. Mandelblatt’s Soroban Capital Partners, which had a $434 million stake in Teck Resources Ltd (NYSE:TCK).
3. General Electric Co. (NYSE:GE)
Number Of Hedge Fund Investors: 76
General Electric Co. (NYSE:GE) shares jumped in October after General Electric Co. (NYSE:GE) posted strong Q3 results. Adjusted EPS in the period came in at $0.82, surpassing estimates of $0.56. Revenue increased by 20% on a YoY basis to $17.3 billion, much better than the Street’s estimates of $15.7 million.
General Electric Co. (NYSE:GE) also upped its full-year 2023 adjusted EPS guidance.
Longleaf Partners Fund made the following comment about General Electric Company (NYSE:GE) in its Q3 2023 investor letter:
“After a busy first half of the year, we initiated one new position in the quarter in a business we have successfully owned previously and were able to buy again at a discount within a new corporate structure. We opportunistically trimmed and added to several positions throughout the quarter, and we exited General Electric Company (NYSE:GE) and our small position in Hasbro after the share price ran away from us. GE was a multi-year portfolio holding for us that started out rocky but ultimately was a good illustration of owning a “quality” business that was temporarily viewed as “value” (aka, perceived as low quality) before ultimately being weighed properly by the market. CEO Larry Culp was a great partner, creating significant value for shareholders and closing the price-to-value gap. Under his leadership, GE materially improved its operations and is well under way on plans to simplify the business by separating it into three world-class companies. The market has finally caught up with reality versus perception and is pricing GE accordingly. Unfortunately, this means we no longer see a margin of safety for the business but will continue to watch GE and Culp closely and hope to have the opportunity to partner with him again.”
2. Exxon Mobil Corp. (NYSE:XOM)
Number Of Hedge Fund Investors: 79
Oil giant Exxon Mobil Corp. (NYSE:XOM) is one of the most favorite stocks of smart money investors. A total of 79 hedge funds in Insider Monkey’s database reported having stakes in Exxon Mobil Corp. (NYSE:XOM) as of the end of the third quarter.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number Of Hedge Fund Investors: 109
JPMorgan Chase & Co. (NYSE:JPM) shares have gained about 17% year to date through December.
A total of 109 hedge funds in Insider Monkey’s database had stakes in JPMorgan Chase & Co. (NYSE:JPM).
Mairs & Power Growth Fund made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2023 investor letter:
“We believe AI will have the largest impact in the near term on large enterprises that can harness AI to increase the productivity of their workforces and improve the experience of their customers. For instance, JPMorgan Chase & Co. (NYSE:JPM) employs more than 900 data scientists, 200 AI researchers, and 600 machine learning engineers, and is building out its own AI data center. The company expects to deliver more than $1.5 billion in business value from AI efforts in 2023.”
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