Hedge Funds Love These 5 Undervalued Mid-Cap Stocks

1. Vontier Corporation (NYSE:VNT)

Number of Hedge Fund Holders: 37   

PE Ratio: 10.32

Vontier Corporation (NYSE:VNT) markets electronic equipment and instruments. On February 22, the company announced that it had entered into an accelerated share repurchase agreement worth $250 million. Mark Morelli, the CEO of the firm, noted the share repurchase reflected strong conviction in business and strength of free cash flows. In earnings for the fourth quarter of 2021, the company reported earnings per share of $0.83, beating estimates by around $0.03. 

On April 4, Barclays analyst Julian Mitchell kept an Overweight rating on Vontier Corporation (NYSE:VNT) stock with a price target of $40. Investment advisors like Argus, Citi, and Barclays are also bullish on the stock. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Gates Capital Management is a leading shareholder in Vontier Corporation (NYSE:VNT) with 2.6 million shares worth more than $82 million. 

In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Vontier Corporation (NYSE:VNT) was one of them. Here is what the fund said:

“We also purchased Vontier Corporation (NYSE:VNT), a spin-out from Fortive, which itself was a spinout from Danaher. Danaher’s unique approach to managing its business and acquiring companies created massive value over the years. Fortive pursued the same path. Vontier uses the same business and acquisition systems and offers similar potential. Vontier’s main businesses are gas station software and hardware and auto repair tooling. The market doesn’t value it similarly to the other two companies due to near-term business headwinds from passing a regulatory-led demand surge for its equipment and concerns about electric vehicle disruption. Management has already made some smart investments in the space and we believe it will deploy the same rational capital allocation policy that drove so much value at its predecessors.”

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