5 Small Cap Stocks That Are Too Cheap To Ignore

In this piece, we will take a look at the five small cap stocks that are too cheap to ignore. If you want to take a look at more stocks, then head on over to 10 Small Cap Stocks That Are Too Cheap To Ignore.

5. Veritiv Corporation (NYSE:VRTV)

Number of Hedge Fund Holders: 17

Veritiv Corporation (NYSE:VRTV) is a business packaging products and services provider that lets its customers buy packaging materials, build clean rooms, and procure commercial printing papers. The firm is headquartered in Atlanta, Georgia.

Veritiv Corporation (NYSE:VRTV) reported $1.82 billion in revenue during its second fiscal quarter, which marked a strong 9.6% annual growth in a quarter that was marked with high inflation. The firm also surprised analysts by increasing its guidance for earnings per share and operating income. Previously, it had expected to bring in EPS ranging between $18 – $21, and the new guidance raised this to $19.5 – $21.5. The operating income guidance was raised to $475 million – $505 million from an earlier $445 million – $485 million.

As part of their second quarter of 2022 investments, 17 out of the 895 hedge funds polled by Insider Monkey had held a stake in Veritiv Corporation (NYSE:VRTV).

Veritiv Corporation (NYSE:VRTV)’s largest investor is Seth Klarman’s Baupost Group which owns 3.5 million shares that are worth $386 million.

4. Urban Outfitters, Inc. (NASDAQ:URBN)

Number of Hedge Fund Holders: 21

Urban Outfitters, Inc. (NASDAQ:URBN) is a consumer product wholesaler and retailer. The firm sells products such as footwear, apparel, and beauty products through its retail and wholesale stores. It is headquartered in Philadelphia, Pennsylvania.

Urban Outfitters, Inc. (NASDAQ:URBN)’s price to earnings and enterprise value to operating income operating income ratios sit at 7x each, which are lower than the sector average of 64x P/E and 14.7x EV/EBITDA ratios. This implies that there is room left for the stock to grow, as its valuation catches up with peers. JPMorgan raised the company’s share price target to $23 from $20 in September 2022, as it shared that the sector as a whole is optimistic about a recovery.

As this year’s second quarter ended, 21 out of the 895 hedge funds polled by Insider Monkey had bought a stake in Urban Outfitters, Inc. (NASDAQ:URBN).

Urban Outfitters, Inc. (NASDAQ:URBN)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 957,700 shares that are worth $17 million.

3. Green Plains Inc. (NASDAQ:GPRE)

Number of Hedge Fund Holders: 22

Green Plains Inc. (NASDAQ:GPRE) is an American ethanol and commodities distributor. The firm provides ethanol to other companies and it also sells natural gas, grain, and corn oil.

Green Plains Inc. (NASDAQ:GPRE) is one of America’s largest ethanol producers, and as 2021 ended, the firm had pumped out 1 billion gallons of ethanol, alongside 290 million pounds of industrial grade corn oil, and 330 million bushels of corn. The company is also slated to add 200,00 tons of ultra high protein capacity next year, along with another 162,000 tons in 2024. This implies that when paired with reducing capital expenditure, the firm’s free cash flows are estimated to sit at $190 million in 2024. At the same time, its debt ratio can also fall below 1.4x, for a strong balance sheet.

Insider Monkey’s Q2 2022 survey covering 895 hedge funds revealed that 22 had invested in Green Plains Inc. (NASDAQ:GPRE).

Out of these, Green Plains Inc. (NASDAQ:GPRE)’s largest investor is Frederick Disanto’s Ancora Advisors which owns four million shares that are worth $109 million.

2. United States Steel Corporation (NYSE:X)

Number of Hedge Fund Holders: 30

United States Steel Corporation (NYSE:X) sells flat rolled and tubular steel products in both Europe and North America. The firm serves the needs of a wide variety of industries such as automotive, construction, transportation, and container manufacturers. It is headquartered in America’s Steel City.

United States Steel Corporation (NYSE:X) has a fortress of a balance sheet, as close to 80% of its total debt is due in and after 2029 – lending the firm a stable profile during today’s turbulent macroeconomic environment. Including this, the firm has ample liquidity of $5.8 billion, out of which $3.4 billion is represented by cash and equivalents. United States Steel Corporation (NYSE:X) also regularly buys back its own shares, and since the fourth quarter of last year, it has bought back $850 million worth of shares.

United States Steel Corporation (NYSE:X) pays a 5 cent dividend for a 0.98% yield. As this year’s June quarter ended, 30 out of the 895 hedge funds polled by Insider Monkey had bought its shares.

United States Steel Corporation (NYSE:X)’s largest investor is Eric W. Mandelblatt’s Soroban Capital Partners which owns 11 million shares that are worth $209 million.

1. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX)

Number of Hedge Fund Holders: 31

Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) is a healthcare information technology solutions services provider. These include providing services such as financial and administrative aid to private clinics and the military.

Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) has a large network of healthcare providers, through which the company directly serves 80,000 physicians and 300,000 more through extended partnerships. Additionally, the firm’s healthcare plan network stands at 35 million strong, without the addition of new members through a recent deal with the Social Security Administration. The firm’s revenue during its second quarter grew by 7% annually and stood at $151 million, beating analyst estimates and it aims to bring in $120 million in free cash flow by the end of this year.

Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 31 had invested in Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX).

Out of these, Ken Fisher’s Fisher Asset Management is Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX)’s largest investor through an $81 million stake that comes via 5.4 million shares.

Disclosure: None. You can also take a look at Best Alternative Energy Stocks To Buy and 15 Biggest Dow Companies By Market Cap.

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