5 Most Undervalued Auto Stocks to Buy According to Hedge Funds

In this article, we will take a look at the 5 most undervalued auto stocks to buy according to hedge funds. To read our analysis of the recent market trends and activity, you can go to the 12 Most Undervalued Auto Stocks to Buy According to Hedge Funds.

5. AutoNation, Inc. (NYSE:AN)

Latest P/E Ratio: 5.79

Number of Hedge Fund Holders: 38

AutoNation, Inc. (NYSE:AN) is one of the largest automotive retailers in the United States. As of December 31, 2022, it owned and operated 343 new vehicle franchises from 247 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region.

On October 27, AutoNation, Inc. (NYSE:AN) released its financial results for Q3 2023. It generated revenues of $6.9 and net income of $244 million. The normalized EPS was recorded at $0.67 for the quarter, which exceeded consensus estimates by $0.16.

According to the Insider Monkey data on 910 leading hedge funds, 38 hedge funds were long AutoNation, Inc. (NYSE:AN) shares as of Q3 2023, with the total shares held by hedge funds valued at $532 million. Anand Parekh’s Alyeska Investment Group was the largest hedge fund shareholder with ownership of 0.6 million shares valued at $97 million.