In this article, we will take a look at the 5 most undervalued retail stocks to buy according to hedge funds. To see more such companies, go directly to 12 Most Undervalued Retail Stocks To Buy According To Hedge Funds.
5. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 49
The Kroger Co. (NYSE:KR) is one of the classic defensive stock picks in the retail sector as the company has the ability to pass on the inflation effects to its customers and it sells items whose demand remains largely stable even during recessions. The Kroger Co. (NYSE:KR) has a PE ratio of 14.11 as of February 2. Of the 920 hedge funds tracked by Insider Monkey, 49 hedge funds reported owning stakes in The Kroger Co. (NYSE:KR) as of the end of the third quarter. The biggest stakeholder of The Kroger Co. (NYSE:KR) among these funds was legendary billionaire Warren Buffett’s hedge fund which had a $2.2 billion stake in the company.
4. Lowe’s Companies, Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 61
Lowe’s Companies, Inc. (NYSE:LOW) forward PE ratio as of February 2 stands at 14.27, according to Yahoo Finance. It is one of the most famous retail stocks among the 920 elite hedge funds tracked by Insider Monkey, as 61 funds reported owning stakes in Lowe’s Companies, Inc. (NYSE:LOW) at the end of the third quarter of last year. The net worth of these stakes was about $5.3 billion. The biggest stakeholder of Lowe’s Companies, Inc. (NYSE:LOW) was Bill Ackman’s Pershing Square which owns a $1.9 billion stake in the firm.
3. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 63
Philip Morris International Inc. (NYSE:PM) ranks 3rd in our list of the most undervalued retail stocks to buy according to hedge funds. Philip Morris International Inc. (NYSE:PM) is a reliable dividend payer with a 4.90% dividend yield as of February 2.
As of the end of the third quarter, 63 hedge funds tracked by Insider Monkey had stakes in Philip Morris International Inc. (NYSE:PM). The total value of these stakes was over $4.6 billion.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 74
One of the biggest names in the automotive retail segment, General Motors Company (NYSE:GM) is one of the most popular retail stocks to buy according to hedge funds. General Motors Company (NYSE:GM) has gained over 22% year to date as of February 2. Still, its PE ratio stands at 6.76. As of the end of the third quarter of 2022, 74 hedge funds out of the 920 funds tracked by Insider Monkey reported owning stakes in General Motors Company (NYSE:GM). The biggest stakeholder of General Motors Company (NYSE:GM) was Warren Buffett’s Berkshire Hathaway which reported owning a $1.6 billion stake in the company at the end of September.
General Motors Company (NYSE:GM) on February 1 declared a quarterly dividend $0.09 per share, in line with the previous quarterly dividend. Forward dividend yield at the time came in at 0.92%. The dividend is payable on March 16 to shareholders of record as of March 3.
1. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 89
As of the end of the third quarter, 89 hedge funds had stakes in The Home Depot, Inc. (NYSE:HD). The biggest stakeholder of The Home Depot, Inc. (NYSE:HD) was Ken Fisher’s Fisher Asset Management which owns a $2.3 billion stake in the firm. The Home Depot, Inc. (NYSE:HD) had a PE ratio of less than 20 as of February 1. Its forward PE ratio is 18.59 as of February 2, according to Yahoo Finance. The Home Depot, Inc. (NYSE:HD) shares gained in January after NAHB Housing Market Index jumped. The Home Depot, Inc. (NYSE:HD) is one of the stocks that gains even when the housing market is slow. When people are not buying new homes, they usually spend on renovating their existing homes, helping home improvement equipment companies like The Home Depot, Inc. (NYSE:HD).
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