5 Most Undervalued EV Stocks To Buy According To Hedge Funds

In this article, we discuss the 5 most undervalued EV stocks to buy according to hedge funds. To read the detailed analysis of the EV industry, go directly to the 12 Most Undervalued EV Stocks To Buy According To Hedge Funds.

5. Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 27

Stellantis N.V. (NYSE:STLA) is a multinational automotive company headquartered in the Netherlands. The company owns multiple famous car brands such as Alfa Romeo, Chrysler, Dodge, and Maserati. In November 2022, Stellantis N.V. (NYSE:STLA) bought an autonomous vehicle technology company, aiMotive. The acquisition was made to expand the company’s footprint in the autonomous vehicle industry.

Stellantis N.V. (NYSE:STLA)’s dividend yield is one of its most attractive metrics. As of August 25, the company has a dividend yield of over 8%. Despite the high dividend yield, it has a forward payout ratio of 26% which isn’t likely to affect the company’s cash flows in a notable way.

As of the second quarter of 2023, Stellantis N.V. (NYSE:STLA) has 25 battery electric vehicles in its product portfolio and plans to add 23 more through 2024.

In Q2 2023, Stellantis N.V. (NYSE:STLA)’s stock was owned by 27 hedge funds, making it the 5th most undervalued EV stock to buy according to hedge funds.

Miller Value Partners made the following comment about Stellantis N.V. (NYSE:STLA) in its second quarter 2023 investor letter:

“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”