5 Best Undervalued Stocks According to Hedge Funds

1. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 63 

PE Ratio: 10.12   

Verizon Communications Inc. (NYSE:VZ) is a communications firm. Hedge funds have been piling into the stock. At the end of the third quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Verizon Communications Inc. (NYSE:VZ), compared to 57 in the previous quarter worth $10.3 billion.

Verizon Communications Inc. (NYSE:VZ) has a dividend history stretching back more than two decades. Over the last seventeen years, it has grown the payout consistently. On February 28, the company declared a quarterly dividend of $0.64 per share, in line with previous. The forward yield was 4.73%. 

In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:

“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”

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