7 Undervalued Canadian Stocks To Buy According To Hedge Funds

4. Royal Bank Of Canada (NYSE:RY)

Number of Hedge Fund Investors: 21  

Forward P/E Ratio as of September 25: 13.92  

Royal Bank Of Canada (NYSE:RY) is the largest financial institution in Canada by market capitalization. The bank provides various financial products and services, including personal and commercial banking, wealth management, and investment banking. Royal Bank Of Canada (NYSE:RY) has a robust international presence, particularly in the U.S. and Caribbean, and continues to grow through strategic acquisitions and digital innovation in financial services.

Royal Bank Of Canada (NYSE:RY) focuses on earning interest income from loans and deposits, as well as fees from asset management and other services. The company’s mortgages are highly regulated. This has resulted in a portfolio with a high percentage of prime mortgages, with 83% of mortgages having a FICO score above 720. Furthermore, the Canadian housing market is supported by strong population growth and limited supply, which should continue to drive demand for housing and support the bank’s mortgage business.

In March, Royal Bank Of Canada (NYSE:RY) acquired HSBC Canada which is poised to expand its footprint in Canada significantly. The company’s wealth management business is also a key driver of growth, with assets under administration increasing by 15% year-over-year. With its strong brand, extensive network, and commitment to innovation, Royal Bank Of Canada (NYSE:RY) is well-positioned to continue to grow its market share and deliver strong returns to shareholders. The company’s stock is trading at a forward PE of 13.92. Analysts forecast the company to increase its earnings by 5.79% this year. As of the second quarter, the stock is held by 21 hedge funds, and the stakes amount to $143.93 million. D E Shaw is the largest shareholder in the company and owns stocks worth $34.86 million as of June 30.