5 Undervalued Non-Tech Stocks to Buy in 2022

In this article, we discuss 5 undervalued non-tech stocks to buy in 2022. If you want to read about some more non-tech undervalued stocks, go directly to 10 Undervalued Non-Tech Stocks to Buy in 2022. 

5. Ovintiv Inc. (NYSE:OVV)

Number of Hedge Fund Holders: 44 

PE Ratio: 8.32

Ovintiv Inc. (NYSE:OVV) markets oil and natural gas. The firm has an impressive dividend history that stretches back over three decades. In the past four years, the dividend payouts have registered consistent growth. The sector median in this regard is just one year. On May 9, the company declared a quarterly dividend of $0.25 per share, an increase of around 25% from the previous dividend of $0.20. The forward yield was 2.11%. The dividend is payable to shareholders by the end of June. 

On April 26, Citi analyst Scott Gruber maintained a Buy rating on Ovintiv Inc. (NYSE:OVV) stock and raised the price target to $64 from $46, citing updated models for small-cap exploration and production companies as one of the reasons behind the upgrade. 

At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Ovintiv Inc. (NYSE:OVV), the same as in the previous quarter worth $684 million.

In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Ovintiv Inc. (NYSE:OVV) was one of them. Here is what the fund said:

“The outlook for high multiple favorites depends to a great degree on interest rates. Warren Buffett likened interest rates to the force of gravity for asset prices. At current low levels, high valuations on long-duration assets can be justified. If interest rates move up, the adjustment will be painful. Market action early in the new year, with the swift moves up in interest rates and down in the Nasdaq, offers a taste of the medicine.

We underwrite all our names to have sufficient upside even if risk-free rates move up to 3% (a scenario, not a forecast!). As we evaluate the opportunity set, we find more attractive prospects in the classic value names. We often hear that people think value investing is dead, which only strengthens our conviction. Our gross exposure to classic value has risen from 44% a year ago to 62% currently.” (Click here to read full text)