In this article, we will discuss the 10 most undervalued stocks to buy now.

Evercore ISI Analyst: “Post-Midterms Tend To Be Very Good For Stocks”

On November 3, senior managing director at Evercore ISI, Julian Emanuel, appeared in an interview on CNBC where he discussed the market volatility we have had in 2022 and what he sees for stocks ahead. Julian Emanuel noted that “the Fed basically came out sounding more hawkish than expected” and that rising bond yields and a strong dollar led to a major sell-off in the “yield-sensitive growth sector”. Here are some comments from Julian Emanuel about what he sees for equities moving into 2023:

“When you think about a year like this year, the ups, the downs, the rollercoasters, centered around these macro relationships… You’re likely to get a new bear market low at some point in the next six to twelve months. But given the volatility that we see and the potential for a cessation in the uptrend in yields, sometime as the Fed backs away-they will eventually back away- you could actually get a good market next year because history says that post-midterms tend to be very good for stocks among other reasons.”

Julian Emanuel thinks that “there’s a bit more room in terms of value outperformance” and is bullish on “financials, healthcare, and energy”. Julian Emanuel said that “growth is arguably still overvalued relative to value” and that “as a long-term investor, you need to be prepared to buy down another 10% and then another 10% after that.”

As of November 4, the S&P 500 has dropped 22.3% year to date, the Nasdaq has shed 35% of its value since the beginning of the year, and the Dow is down 12.38% for the year. Yields are going up and stocks are sinking to new lows. However, for the long-term investor, now might be an optimal buying opportunity to get best-in-class companies at bargain levels. This article will look at some of the most undervalued stocks to buy now, which include Intel Corporation (NASDAQ:INTC), Pfizer Inc. (NYSE:PFE), and Occidental Petroleum Corporation (NYSE:OXY).

Our Methodology

To determine the most undervalued stocks to buy now, we screened for best-in-class companies whose shares have weakened significantly and are now trading at a PE multiple of less than 15x. We preferred companies with solid fundamentals and long-term growth stories and along with each stock, we included the hedge fund sentiment and analyst ratings. These stocks are ranked according to their popularity among elite hedge funds.

Most Undervalued Stocks to Buy Now

10. Vale S.A. (NYSE:VALE)

PE Ratio as of November 4: 3.69

Number of Hedge Fund Holders: 27

Vale S.A. (NYSE:VALE) is a Brazilian mining and metals company that is among the largest producers of iron ore and nickel in the world. At the close of Q2 2022, 27 hedge funds held stakes in Vale S.A. (NYSE:VALE). The collective stakes of these hedge funds were valued at $1.78 billion.

On October 27, Vale S.A. (NYSE:VALE) announced earnings for the third quarter of fiscal 2022. The company reported earnings per share of $1.05 and outperformed estimates by $0.05. The company generated a revenue of $9.93 billion for the quarter. As of November 4, Vale S.A. (NYSE:VALE) has a price-to-earnings ratio of 3.69 and is among the most undervalued stocks to buy now.

On October 5, Deutsche Bank analyst Liam Fitzpatrick updated his price target on Vale S.A. (NYSE:VALE) to $19 from $20 and maintained a Hold rating on the shares.

As of June 30, Fisher Asset Management is the largest investor in Vale S.A. (NYSE:VALE) and has stakes worth $324.5 million in the company.

Some of the top names that investors can buy into weakness right now include Intel Corporation (NASDAQ:INTC), Pfizer Inc. (NYSE:PFE), and Occidental Petroleum Corporation (NYSE:OXY).

9. Barrick Gold Corporation (NYSE:GOLD)

PE Ratio as of November 4: 12.36

Number of Hedge Fund Holders: 40

Barrick Gold Corporation (NYSE:GOLD) is a leading Canadian gold mining company with operations in 18 countries. The company is among the largest gold producers in the world. As of November 4, Barrick Gold Corporation (NYSE:GOLD) has a price-to-earnings ratio of 12.36 and is awarding shareholders with a dividend yield of 5.32%. The stock is one of the most undervalued stocks to buy now.

On October 19, Stifel analyst Ingrid Rico updated her price target on Barrick Gold Corporation (NYSE:GOLD) to C$33 from C$35.25 and reiterated a Buy rating on the shares.

At the close of Q2 2022, 40 hedge funds were long Barrick Gold Corporation (NYSE:GOLD) and held stakes worth $1.13 billion in the company. Of those, First Eagle Investment Management was the top shareholder in the company and disclosed a stake of $471 million.

8. Coterra Energy Inc. (NYSE:CTRA)

PE Ratio as of November 4: 6.95

Number of Hedge Fund Holders: 40

Coterra Energy Inc. (NYSE:CTRA) is a leading American oil and gas company that is involved in the development, exploration and production of oil, natural gas, and natural gas liquids. As of November 4, the company has a market capitalization of $24.4 billion and is trading at a PE multiple of 7x. Coterra Energy Inc. (NYSE:CTRA) is among the best undervalued stocks to buy now.

This October, Jefferies analyst Lloyd Byrne took coverage of Coterra Energy Inc. (NYSE:CTRA) with a Hold rating and a $32 price target. On October 25, Stifel analyst Derrick Whitfield started coverage of Coterra Energy Inc. (NYSE:CTRA) with a Buy rating and a $40 price target.

At the end of Q2 2022, 40 hedge funds held stakes in Coterra Energy Inc (NYSE:CTRA) worth roughly $437.35 million. This is compared to 39 positions in the previous quarter with stakes worth $551.5 million.

As of June 30, Diamond Hill Capital is the largest investor in Coterra Energy Inc. (NYSE:CTRA) and has a position worth $116.4 million in the company.

Here is what Palm Valley Capital had to say about Coterra Energy Inc. (NYSE:CTRA) in its second-quarter 2022 investor letter:

“We sold two Fund positions during the quarter which includes Coterra Energy (NYSE:CTRA). As a result of surging oil and natural gas prices, Coterra reached our valuation, and we exited the position in April.”

7. Marathon Oil Corporation (NYSE:MRO)

PE Ratio as of November 4: 7.67

Number of Hedge Fund Holders: 41

Marathon Oil Corporation (NYSE:MRO) is a leading global oil and gas exploration company. On November 2, Marathon Oil Corporation (NYSE:MRO) announced earnings for the fiscal third quarter of 2022. The company reported earnings per share of $1.24 and outperformed expectations by $0.07. The company generated a revenue of $2.25 billion, up 54.65% year over year, and beat expectations by $219.5 million.

On October 18, Piper Sandler analyst Mark Lear raised his price target on Marathon Oil Corporation (NYSE:MRO) to $38 from $36 and reiterated an Overweight rating on the shares. As of November 4, the stock is trading at a PE multiple of 7x and is among the best undervalued stocks to buy now.

At the close of Q2 2022, 41 hedge funds were long Marathon Oil Corporation (NYSE:MRO) and held stakes worth $1.26 billion in the company. As of June 30, Fisher Asset Management is the top investor in Marathon Oil Corporation (NYSE:MRO) and has stakes worth $194 million in the company.

Shares of Intel Corporation (NASDAQ:INTC), Pfizer Inc. (NYSE:PFE), and Occidental Petroleum Corporation (NYSE:OXY) have pulled back in 2022 and are presenting an attractive entry point for long-term investors.

6. Ford Motor Company (NYSE:F)

PE Ratio as of November 4: 4.70

Number of Hedge Fund Holders: 46

Ford Motor Company (NYSE:F) has pulled back in 2022 and is presenting an optimal opportunity for long-term investors. As of November 4, the stock is trading at a PE multiple of 4x and is offering a forward dividend yield of 4.49%. Ford Motor Company (NYSE:F) is ranked among the most undervalued stocks to buy now.

On October 27, Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and his $14 price target on Ford Motor Company (NYSE:F).

At the end of Q2 2022, 46 hedge funds held stakes in Ford Motor Company (NYSE:F). The total value of these stakes amounted to $608.7 million. As of June 30, D E Shaw has a position worth $257.6 million in the company and is the top investor.

Here is what Leaven Partners had to say about Ford Motor Company (NYSE:F) in its third-quarter 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

5. Freeport-McMoRan Inc. (NYSE:FCX)

PE Ratio as of November 4: 13.45

Number of Hedge Fund Holders: 56

Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company and one of the largest producers of molybdenum in the world. On October 5, Deutsche Bank analyst Abhi Agarwal revised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $30 from $35 and reiterated a Hold rating on the shares.

On October 20, Freeport-McMoRan Inc. (NYSE:FCX) announced earnings for the fiscal third quarter of 2022. The company generated a revenue of $5 billion and outperformed estimates by $81.79 million. The company reported an EPS of $0.26 and beat expectations by $0.01.

Shares of Freeport-McMoRan Inc. (NYSE:FCX) have pulled back in 2022 and are now presenting an attractive buying opportunity for investors. As of November 4, the stock is trading at a PE multiple of 13x and is offering a forward dividend yield of 1.93%.

At the close of Q2 2022, 56 hedge funds disclosed ownership of stakes in Freeport-McMoRan Inc. (NYSE:FCX). The total stakes of these hedge funds amounted to $2.47 billion. As of June 30, Fisher Asset Management is the largest shareholder in Freeport-McMoRan Inc. (NYSE:FCX) and has a position valued at $1.52 billion.

Here is what Carillon Tower Advisers had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its second-quarter 2022 investor letter:

“Mining company Freeport-McMoRan Inc. (NYSE:FCX) fell with the price of copper as emerging market credit and rate hike jitters weighed on metal prices. Copper is projected to be in very short supply into the end of the decade due to a scarcity of new mines being developed and the increasing use of renewable energy, but economic recession fears, a slowdown in construction in China, and a slowing housing market in the United States dented the stock price.”

4. Intel Corporation (NASDAQ:INTC)

PE Ratio as of November 4: 8.66

Number of Hedge Fund Holders: 65

On October 28, Summit Insights analyst Kinngai Chan upgraded Intel Corporation (NASDAQ:INTC) to Buy from Hold. This October, Northland analyst Gus Richard reiterated his $52 price target and an Outperform rating on Intel Corporation (NASDAQ:INTC).

Intel Corporation (NASDAQ:INTC) has pulled back in 2022 and is presenting an attractive buying opportunity for long-term investors. As of November 4, the stock is trading at a PE multiple of 8x and is awarding shareholders with a forward dividend yield of 5.14%.

At the end of Q2 2022, 65 hedge funds were eager on Intel Corporation (NASDAQ:INTC) and held stakes worth $2.53 billion in the company. Of those, Generation Investment Management was the top investor in the company and held a position worth $552.5 million.

Here is what Baron Funds had to say about Intel Corporation (NASDAQ:INTC)  in its second-quarter 2022 investor letter:

“Then, there is the case of Intel Corporation (NASDAQ:INTC). A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.”

3. Occidental Petroleum Corporation (NYSE:OXY)

PE Ratio as of November 4: 7.28

Number of Hedge Fund Holders: 66

As of November 4, Occidental Petroleum Corporation (NYSE:OXY) has surged more than 135% year to date. The stock is trading cheaply relative to earnings and has a price-to-earnings ratio of 7.28, as of November 4, and is awarding shareholders with a forward dividend yield of 0.70%. Occidental Petroleum Corporation (NYSE:OXY) is ranked high among the best undervalued stocks to buy now.

On October 19, Barclays analyst Jeanine Wai raised her price target on Occidental Petroleum Corporation (NYSE:OXY) to $84 from $75 and remained Overweight rating on the shares.

At the end of Q2 2022, 66 hedge funds were bullish on Occidental Petroleum Corporation (NYSE:OXY) and held stakes worth $13.75 billion in the company. This is compared to 67 positions in the preceding quarter with stakes worth $12.6 billion.

As of June 30, Berkshire Hathaway has a position worth $9.33 billion in Occidental Petroleum Corporation (NYSE:OXY) and is the top investor in the company.

Here is what Smead Capital Management had to say about Occidental Petroleum Corporation (NYSE:OXY) in its third-quarter 2022 investor letter:

“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”

2. Micron Technology, Inc. (NASDAQ:MU)

PE Ratio as of November 4: 7.31

Number of Hedge Fund Holders: 69

On September 29, Micron Technology, Inc. (NASDAQ:MU) announced earnings for the fiscal fourth quarter of 2022. The company generated a revenue of $6.64 billion and reported earnings per share of $1.45, outperforming consensus by $0.08. As of November 4, Micron Technology, Inc. (NASDAQ:MU) is trading at a PE multiple of 7x and is offering a forward dividend yield of 0.86%. The company is a leader in the semiconductor space and is poised to capture further market share and retain its position in the DRAM and NAND markets. The stock is ranked high among the best undervalued stocks to buy now.

On October 13, Loop Capital analyst Charles Park took coverage of Micron Technology, Inc. (NASDAQ:MU) with a Buy rating and a $70 price target

At the close of Q2 2022, 69 hedge funds were long Micron Technology, Inc. (NASDAQ:MU) and held stakes worth $2.16 billion in the company. Of those, Matrix Capital Management was the top investor in the company and disclosed a position worth $221 million.

Here is what Claret Asset Management had to say about Micron Technology, Inc. (NASDAQ:MU) in its third-quarter 2022 investor letter:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”

1. Pfizer Inc. (NYSE:PFE)

PE Ratio as of November 4: 9.22

Number of Hedge Fund Holders: 70

Pfizer Inc (NYSE:PFE) is trading at a bargain right now and is presenting an attractive opportunity for investors to rack up shares of an industry leader into weakness. As of November 4, the stock has a price-to-earnings ratio of 9.22 and is offering investors a forward dividend yield of 3.44%. The stock is ranked high among the best undervalued stocks to invest in right now.

On November 1, Pfizer Inc. (NYSE:PFE) reported strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $1.78 and outperformed estimates by $0.38. The company generated a revenue of $22.6 billion for the quarter. Shortly after the company’s earnings release, Barclays analyst Carter Gould raised his price target on Pfizer Inc. (NYSE:PFE) to $49 from $44 and maintained an Equal Weight rating on the shares.

At the close of Q2 2022, 70 hedge funds were bullish on Pfizer Inc. (NYSE:PFE) and held stakes worth $2.80 billion in the company. Of those, AQR Capital Management was the top investor and held a position worth $553.9 million in the company.

Here is what Diamond Hill Capital had to say about Pfizer Inc. (NYSE:PFE) in its third-quarter 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.

You can also take a look at Best Biotech Stocks Under $10 and 10 Best Small Cap Stocks To Buy Now.

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Disclosure: None. 10 Most Undervalued Stocks to Buy Now is originally published on Insider Monkey.