5 Undervalued S&P 500 Stocks Billionaires Are Loading Up On

In this article, we discuss 5 undervalued S&P 500 stocks billionaires are loading up on. If you want to read our detailed analysis of value stocks and their performance, go directly to read 10 Undervalued S&P 500 Stocks Billionaires Are Loading Up On. 

5. Coterra Energy Inc. (NYSE:CTRA)

Number of Billionaire Investors: 12
Forward P/E Ratio as of June 5: 4.58

Coterra Energy Inc. (NYSE:CTRA) is a Texas-based energy company involved in hydrocarbon exploration. Goldman Sachs took over coverage on the stock in May with a Buy rating and a $29 price target, appreciating the company’s diversified commodity exposure.

In the first quarter, the company reported revenue of $1.78 billion, up 6% from the prior-year period. Its operating cash flow came in at roughly $1.5 billion and its free cash flow amounted to $556 million. The company pays a quarterly dividend of $0.20 per share and has a dividend yield of 9.21%, as of June 5.

With a forward P/E ratio of 4.58, Coterra Energy Inc. (NYSE:CTRA) is one of the most popular undervalued stocks among billionaires.

Coterra Energy Inc. (NYSE:CTRA) was a part of 31 hedge fund portfolios in Q1 2023, as per Insider Monkey’s database. David Harding and Cliff Asness were the two most prominent billionaires holding stakes in the company.

4. Albemarle Corporation (NYSE:ALB)

Number of Billionaire Investors: 12
Forward P/E Ratio as of June 5: 6.68

Albemarle Corporation (NYSE:ALB) is next on our list of the top undervalued S&P 500 stocks among billionaires. The chemical manufacturing company generated $2.58 billion in revenue in Q1 2023, up 128.3% from the same period last year. It offers a quarterly dividend of $0.40 per share for a dividend yield of 0.77%, as recorded on June 5. The company maintains a 29-year streak of consecutive dividend growth.

UBS upgraded Albemarle Corporation (NYSE:ALB) to Buy in May and also lifted its price target on the stock to $225. The firm mentioned that the company’s guidance offers a good entry point for the best ‘growth opportunity’ in chemicals.

At the end of Q1 2023, 41 hedge funds tracked by Insider Monkey reported having stakes in Albemarle Corporation (NYSE:ALB), compared with 46 in the previous quarter. These stakes are collectively valued at $355.7 million. Billionaire Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company.

3. Citigroup Inc. (NYSE:C)

Number of Billionaire Investors: 13
Forward P/E Ratio as of June 5: 6.36

An American investment banking company, Citigroup Inc. (NYSE:C) is among the undervalued S&P 500 stocks billionaires are loading up on. Warren Buffett and Ken Griffin were two of the company’s most popular billionaire investors in Q1 2023. The stock has a forward P/E ratio of 6.36, as of June 5.

As of the close of March 2023, 79 hedge funds in Insider Monkey’s database had stakes in Citigroup Inc. (NYSE:C), with a collective value of over $7.7 billion.

2. American International Group, Inc. (NYSE:AIG)

Number of Billionaire Investors: 13
Forward P/E Ratio as of June 5: 7.20

American International Group, Inc. (NYSE:AIG) is a New York-based finance and insurance corporation that has operations in over 80 countries. Piper Sandler raised its price target on the stock to $77 and kept an Overweight rating on the shares, following its deal to sell Validus Re. The firm also appreciated the company’s business profile.

American International Group, Inc. (NYSE:AIG) was a part of 13 billion portfolios in our database as of the first quarter of 2023. Overall, 46 hedge funds tracked by Insider Monkey had stakes in the company in Q1, the same as in the previous quarter. Billionaire Dan Loeb’s Third Point was one of the company’s leading stakeholders.

1. CF Industries Holdings, Inc. (NYSE:CF)

Number of Billionaire Investors: 13
Forward P/E Ratio as of June 5: 4.21

CF Industries Holdings, Inc. (NYSE:CF) tops our list of the undervalued S&P 500 stocks billionaires are buying. The fertilizer company was a part of 47 hedge fund portfolios at the end of Q1 2023, according to Insider Monkey’s database. The collective stakes value is over $767.3 million. Billionaire Cliff Asness’s AQR Capital Management was the company’s largest stakeholder with over 3 million shares.

Barclays maintained an Overweight rating on CF Industries Holdings, Inc. (NYSE:CF) in June with an $80 price target, presenting a neutral stance on the fertilizer sector.

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