5 Best Undervalued Stocks to Buy Now

4. PulteGroup, Inc. (NYSE: PHM)

Number of Hedge Fund Holders: 40

PE Ratio: 11.3

PulteGroup, Inc. (NYSE: PHM) is a Georgia-based construction firm. The company primarily takes up home building ventures by acquiring and developing land for residential purposes. The firm makes several different types of houses, including single-family, townhouses, condominiums, and duplexes. The firm also arranges financing for home seekers, and presently controls more than 180,000 lots across the US. It was founded in 1960 and is placed fourth on our list of 10 best undervalued stocks to buy now. 

PulteGroup, Inc. (NYSE: PHM) was named among the stocks to watch by real estate brokerage Redfin on March 28 amid a boom in competition for home ownership. Redfin detailed that low mortgage rates and a moving trend had been encouraged by remote working and led to an increase in the demand for houses. 

At the end of the fourth quarter of 2020, 40 hedge funds in the database of Insider Monkey held stakes worth $1 billion in the firm, down from 43 in the preceding quarter worth $1.01 billion.

In one of their investor letters, Diamond Hill Capital highlighted a few stocks and PulteGroup Inc (NYSE:PHM) is one of them. Here is what Diamond Hill Capital said:

“Shares of homebuilder PulteGroup, Inc. declined, despite a strong start to the year. The company’s business is cyclical and as recession fears mounted due to the impact of COVID-19, the stock dropped precipitously.”