5 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

4. APA Corporation (NASDAQ:APA)

Number of Hedge Fund Holders: 47

P/E Ratio as of January 24: 4.29

APA Corporation (NASDAQ:APA) is a Texas-based company that explores for, develops, and produces oil and gas properties. It has operations in the United States, Egypt, and the United Kingdom. APA Corporation (NASDAQ:APA) is one of the most undervalued NASDAQ stocks to consider. On December 14, the company declared a $0.25 per share quarterly dividend, in line with previous. The dividend is distributable on February 22, to shareholders of record on January 23. 

On January 19, Truist analyst Neal Dingmann maintained a Buy recommendation on APA Corporation (NASDAQ:APA) but lowered his price target on the shares from $69 to $63. The analyst noted that the company’s Q4 pre-announcement was relatively negative, with slightly worse-than-expected prices and expenses. He also warned that APA Corporation (NASDAQ:APA) could encounter an even larger relative international stumble. Despite this, he still believes that the company’s 2023 should be largely on track and a continued sizable shareholder return program is expected.

According to Insider Monkey’s third quarter database, APA Corporation (NASDAQ:APA) was part of 47 hedge fund portfolios, compared to 36 in the prior quarter. Harris Associates is the largest stakeholder of the company, with 13.35 million shares worth $456.5 million. 

Here is what Oakmark Select Fund has to say about APA Corporation (NASDAQ:APA) in its Q1 2022 investor letter:

“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”