5 Best Undervalued Stocks to Buy Now

1. Heico Corporation (NYSE:HEI)

No of HFs: 43

Total Value of HF Holdings: $712 Million

The top undervalued stock to buy now is HEI. The company is focused on the manufacturing of jet engine and aircraft component replacement parts. The pandemic has taken a toll in the aerospace industry although HEI was able to hold up better than most. During the third quarter of 2020, the company reported a non-flight business growth of 4%. The aerospace industry may be facing difficulties but Eric A. Mendelson, Heico’s co-president and head of its flight support group mentioned that their cost-saving solutions and product development programs will increase market share.

“We believe demand for our favorably priced commercial aviation products and services will return in advance of the overall market recovery. Furthermore, we believe our cost-saving solutions and robust product development programs will enable us to potentially increase market share and emerge with a stronger presence within the commercial aviation market.”

The top hedge fund holder of this stock is Robert Joseph Caruso’s Select Equity Group, which had $88 million invested in the stock at the end of September. An insider purchased 978 shares at around $111. The stock is up more than 24% since then.

Please also see 10 Best Consumer Finance Stocks to Buy Now and 15 Best Dividend Stocks with Upside Potential

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Disclosure: No positions.