16 Most Undervalued Stocks to Buy Now

5) Apollo Global Management, Inc. (NYSE:APO)

Forward P/E as of August 22: 15.13x

Number of Hedge Fund Holders: 79

Expected EPS Growth this Year: 4.9%

Apollo Global Management, Inc. (NYSE:APO) is an alternative investment manager. The company serves several sectors like chemicals, manufacturing and industrial, natural resources, consumer and retail, consumer services, and business services, among others.

Over the last decade or so, the company’s primary growth driver has been its investment-grade credit business, which is closely linked to the rise of its insurance subsidiary, Athene. Moving forward, the company’s earnings and revenues are expected to be driven by the disruptive trends in financial services, mainly the shift of retirement assets to higher-yielding private credit. This is because it plays a dual role as an asset manager and annuity provider.

Moving forward, Apollo Global Management, Inc. (NYSE:APO)’s innovative products, like fixed indexed annuities and multi-year guaranteed annuities, should act as principal growth drivers.

The company released its 2Q 2024 results, highlighting significant capital deployment and inflows, with $70 billion invested and record inflows of $39 billion. The company has a positive strategic outlook, with expectations of healthy growth over the next decade across sectors, such as infrastructure and energy transition, and in the retirement services market. Apollo Global Management, Inc. (NYSE:APO)’s debt origination and hybrid and equity strategies are expected to act as tailwinds.

TD Cowen increased its price objective on shares of Apollo Global Management, Inc. (NYSE:APO) from $146.00 to $147.00, giving the stock a “Buy” rating on 8^th July.  The Insider Monkey database indicates that 79 hedge funds held stakes in the company as of the end of Q2 2024.

Baron Funds, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider.”