5 Undervalued Stocks to Buy According to Billionaire Joel Greenblatt

1. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 45 

PE Ratio: 17.83    

AutoZone, Inc. (NYSE:AZO) markets automotive replacement parts and accessories. 13F filings show that the hedge fund of Greenblatt owned 4,386 shares in the company at the end of the fourth quarter of 2021 worth $9.1 million, representing 0.29% of the portfolio. The fund increased its stake in the firm by 65% between October and December compared to third quarter data. 

AutoZone, Inc. (NYSE:AZO) has been in the Gotham portfolio since late 2013. Back then, the stake consisted of just 14,000 shares purchased at an average price of $427 per share. The shares have now climbed above $1,900. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in AutoZone, Inc. (NYSE:AZO) with 242,400 shares worth more than $508 million.  

In its Q4 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and AutoZone, Inc. (NYSE:AZO) was one of them. Here is what the fund said:

“The Fund’s investments in auto-related businesses were consistent top performers in 2021. Shortages of new vehicles have driven buyers into the used car market. AutoZone, Inc. (NYSE:AZO) has won new customers who need to maintain vehicles they now plan to own longer (and federal stimulus checks have given car owners some extra cash to spend on car maintenance).”

You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.

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