Hedge Funds Are Buying 5 Technically Undervalued And Profitable Stocks

Hedge Funds Are Buying 5 Technically Undervalued And Profitable Stocks

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If you consider yourself a value investor, here are some ideas to get started on your stock search.

We ran a screen on stocks that are expected to grow EPS in the next 5 years by at least 15% for those that still appear undervalued, with PEG below 1 and Price to Free Cash Flow ratios below 15.

If you follow the actions of large institutional investors such as hedge funds, we further filtered the stocks for those with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think institutions are right about buying these undervalued, and profitable stocks? We recommend you do your own analysis by starting with the list here.

1. Kohlberg Kravis Roberts & Co. (KKR, Earnings, Analysts, Financials): A private equity and venture capital firm specializing in acquisitions, leveraged buyouts, management buyouts, and mezzanine investments in large cap companies. Market cap at $4.26B, most recent closing price at $17.49. PEG at 0.19. P/FCF at 1.23. EPS growth for the next 5 years at 44.7%. Net institutional purchases in the current quarter at 22.8M shares, which represents about 10.49% of the company's float of 217.44M shares.

 

2. Questcor Pharmaceuticals, Inc. (QCOR, Earnings, Analysts, Financials): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $1.54B, most recent closing price at $26.40. PEG at 0.3. P/FCF at 9.3. EPS growth for the next 5 years at 33.5%. Net institutional purchases in the current quarter at 2.9M shares, which represents about 5.3% of the company's float of 54.74M shares.
 

3. Calumet Specialty Products Partners LP (CLMT, Earnings, Analysts, Financials): Produces and sells specialty hydrocarbon products in North America. Market cap at $2.07B, most recent closing price at $32.10. PEG at 0.6. P/FCF at 11.64. EPS growth for the next 5 years at 16.25%. Net institutional purchases in the current quarter at 2.9M shares, which represents about 7.36% of the company's float of 39.38M
 

4. USANA Health Sciences Inc. (USNA, Earnings, Analysts, Financials): Develops, manufactures, distributes, and sells nutritional and personal care products worldwide. Market cap at $500.43M, most recent closing price at $34.68. PEG at 0.48. P/FCF at 7.01. EPS growth for the next 5 years at 18%. Net institutional purchases in the current quarter at 891.3K shares, which represents about 13.97% of the company's float of 6.38M shares.
 

5. American International Group, Inc. (AIG, Earnings, Analysts, Financials): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap at $57.37B, most recent closing price at $38.86. PEG at 0.14. P/FCF at 14.08. EPS growth for the next 5 years at 19.52%. Net institutional purchases in the current quarter at 489.6M shares, which represents about 39.48% of the company's float of 1.24B shares.
 

 

 

(List compiled by Sabina Bhatia. Institutional data sourced from Fidelity, all other data sourced from Finviz.)

 

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One Response to “Hedge Funds Are Buying 5 Technically Undervalued And Profitable Stocks”

  1. bigaltheterp says:

    John MAck of KKR should be in Jail!!! He is a crook.

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