5 Most Undervalued Quality Stocks To Buy According To Hedge Funds

4. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 68

P/E Ratio as of January 25: 17.19

Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based company that designs, manufactures, and sells Internet Protocol-based networking and products related to the communications and information technology industry. Cisco Systems, Inc. (NASDAQ:CSCO) paid a $0.38 per share quarterly dividend to shareholders  on January 25. It is one of the most undervalued quality stocks to monitor. 

On January 17, Piper Sandler analyst James Fish raised the firm’s price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $49 from $47 and kept a Neutral rating on the shares. The analyst made changes to the estimates and valuations for the cloud automation software industry before the earnings release.

According to Insider Monkey’s data, 68 hedge funds were long Cisco Systems, Inc. (NASDAQ:CSCO) at the end of September 2022, compared to 63 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the biggest stakeholder of the company, with 9.70 million shares worth $388 million. 

In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. (NASDAQ:CSCO) was one of them. Here is what the fund said:

“Cisco Systems (NASDAQ:CSCO) traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”