5 Most Undervalued Dividend Stocks To Buy According To Analysts

In this article, we will take a look at the 5 most undervalued dividend stocks to buy according to analysts. To see more such companies, go directly to 12 Most Undervalued Dividend Stocks To Buy According To Analysts.

5. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 32

Average Analyst Price Estimate: $110

Chemical manufacturing company FMC Corporation (NYSE:FMC) ranks 5th in our list of the most undervalued dividend stocks to buy according to Wall Street analysts. However, FMC Corporation (NYSE:FMC) in September received a downgrade from Redburn Atlantic, which decreased its rating on the stock to Neutral from Buy.

FMC Corporation (NYSE:FMC) talked in detail about its guidance and business updates in its Q2 earnings call:

“EBITDA margins are expected to be up roughly 270 basis points in Q3 and 460 basis points in Q4 with full year 2023 EBITDA margin forecasted to increase by roughly 120 basis points despite the tough first half of the year. Interest expense for the second quarter was $64.5 million, up $29.2 million versus the prior year period. Substantially higher U.S. interest rates were the primary driver of higher interest expense in the quarter, along with higher overall debt levels resulting from elevated working capital. We now expect full year interest expense to be in the range of $220 million to $230 million, an increase of $15 million at the midpoint compared to our prior guidance.

This increase is driven by higher debt balances due to elevated working capital levels. Our effective tax rate on adjusted earnings for…” [ read the full earnings call transcript here]

Out of the 910 hedge funds tracked by Insider Monkey, 32 hedge funds had stakes in FMC Corporation (NYSE:FMC) as of the end of the second quarter of 2023. The biggest stake in FMC Corporation (NYSE:FMC) belongs to Ken Griffin’s Citadel Investment Group which owns a $106 million stake in the company.

TimesSquare U.S. Mid Cap Growth Strategy made the following comment about FMC Corporation (NYSE:FMC) in its Q4 2022 investor letter:

“Within Materials, FMC Corporation (NYSE:FMC) is an agricultural sciences company offering solutions in areas such as crop protection, plant health, professional pest, and turf management. The company delivered solid third quarter results that led to a 19% boost to its stock price. Management continues to view the outlook as favorable, underpinning strong demand. Inflationary pressures appear to be easing and supportive of margin expansion.”