5 Most Undervalued Quality Stocks To Buy According To Hedge Funds

In this article, we discuss 5 most undervalued quality stocks to buy according to hedge funds. If you want to see more stocks in this selection, 15 Most Undervalued Quality Stocks To Buy According To Hedge Funds. 

5. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 57

P/E Ratio as of January 25: 17.56

Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based company that explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. The company’s primary mineral properties are based in North America, South America, and Indonesia. Freeport-McMoRan Inc. (NYSE:FCX) is one of the most undervalued quality stocks to invest in according to hedge funds. On January 25, the company reported a Q4 non-GAAP EPS of $0.52 and a revenue of $5.76 billion, outperforming Wall Street estimates by $0.08 and $340 million, respectively. 

On January 11, Citi analyst Alexander Hacking raised the price target on Freeport-McMoRan Inc. (NYSE:FCX) to $44 from $29 and maintained a Neutral rating on the shares. The analyst made adjustments to his copper models in preparation for the fourth quarter results and took into account the higher copper price predictions from Citi’s global commodity team.

According to Insider Monkey’s data, Freeport-McMoRan Inc. (NYSE:FCX) was part of 57 hedge fund portfolios at the end of Q3 2022, compared to 56 in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with more than 53 million shares worth $1.45 billion. 

ClearBridge Investments made the following comment about Freeport-McMoRan Inc. (NYSE:FCX) in its Q3 2022 investor letter:

“Seeing better opportunities elsewhere in the materials sector, we exited our position in Ecolab and added to copper producer Freeport-McMoRan Inc. (NYSE:FCX), which supplies a much-needed resource for the energy transition, and specialty chemical company Linde (LIN), which has historically held onto pricing gains it has achieved following increases in energy costs. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate.”