5 Undervalued Small-Cap Stocks to Buy Now

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1. Abercrombie & Fitch Co. (NYSE:ANF)

Number of Hedge Fund Holders: 29

P/E Ratio as of March 7: 6.48

Market Capitalization as of March 7: $1.543 billion

Abercrombie & Fitch Co. (NYSE:ANF) offers a price to earnings ratio of 6.48 and a market capitalization of $1.543 billion as of March 7, making it a significant undervalued small-cap stock to buy now. Abercrombie & Fitch Co. (NYSE:ANF) was founded in 1892 and is headquartered in New Albany, Ohio, and the company markets and sells apparel, personal care products, and accessories under the Hollister, Abercrombie & Fitch, Abercrombie Kids, Moose, Seagull, and Gilly Hicks brands.

On March 3, B. Riley analyst Susan Anderson lowered the price target on Abercrombie & Fitch Co. (NYSE:ANF) to $48 from $54 but kept a Buy rating on the shares following the Q4 results. The analyst believes there is upside for both Abercrombie & Fitch Co. (NYSE:ANF)’s sales and EBIT margins in 2022 as management did not anticipate international demand to recover and consumers continuing to refresh their wardrobes.

Among the hedge funds tracked by Insider Monkey, 29 funds were long Abercrombie & Fitch Co. (NYSE:ANF) in Q4 2021, compared to 31 funds in the preceding quarter. Paradice Investment Management is the leading shareholder of the company, with 2.7 million shares worth $96.8 million.

You can also take a look at 10 Best Undervalued Stocks According to Hedge Funds and 10 Best Dow Dividend Stocks to Double Your Income

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