10 Undervalued Non-Tech Stocks to Buy in 2022

Published May 20, 2022 at 1:49 pm EDT Updated August 19, 2026 at 7:53 am EDT

In this article, we discuss 10 undervalued non-tech stocks to buy in 2022.

Inflation-related risks to the stock market and a war in Europe have made people in the United States pessimistic about economic growth. A recent survey from insurance firm AllianzLife reveals that 6 out of 10 adults in the United States are concerned that a major recession is “right around the corner”. Economic experts also concur with this viewpoint. Wells Fargo CEO Charlie Scharf recently said during a Wall Street Journal event that it was going to be “hard to avoid some kind of recession” as the Fed moves to aggressively raise rates to keep prices in check.

There are other signs of a recession as well. The stock market is sliding, with the benchmark S&P 500 down over 18% so far this year. Economic activity is shrinking as well, and the US GDP declined at a 1.4% annualized rate in the first three months of 2022. Inflation in the US jumped to a record high of 8.5% in March, breaking a 40-year record. The central bank has stepped in to address the crisis by announcing the biggest rate hike in 22 years and plans to reduce the balance sheet by $9 trillion. Fed chief Jerome Powell is leading this response.

In a recent interview with Marketplace host Kai Ryssdal, Powell underlined that what the Fed was doing was designed to control demand, noting that the decisions made by the central bank could not directly influence supplies. He also stressed that geopolitical events were weighing heavily on the economy. Powell claimed that the actual factors on which a “soft landing” for the economy depended might be “out of control” of the central bank. However, he added that the Fed has a “strong desire” to bring inflation under control.

Powell has previously pointed to the labor market and strong consumer spending as bright spots that might reduce the pain associated with reducing inflation. In this situation, investors are flocking to safe value stocks that offer strong cash flows for some respite from market volatility. Some of the best non-tech undervalued stocks to buy in 2022 according to hedge funds include Starbucks Corporation (NASDAQ:SBUX), AT&T Inc. (NYSE:T), and Exxon Mobil Corporation (NYSE:XOM).

Our Methodology

These were picked using the Price-to-Earning (PE) ratios as of May 19. Stocks that have a PE ratio of less than 20 and strong cash flows were preferred for the list. The business fundamentals and analyst ratings of each company are also discussed to provide some additional context.

Hedge fund sentiment was included as a classifier as well. Data from around 900 elite hedge funds tracked by Insider Monkey at the end of December 2021 was used to identify the number of hedge funds that hold stakes in each company.

Source: pexels

Undervalued Non-Tech Stocks to Buy in 2022

10. Univar Solutions Inc. (NYSE:UNVR)

Number of Hedge Fund Holders: 34

PE Ratio: 8.51

Univar Solutions Inc. (NYSE:UNVR) markets commodity and specialty chemical products. The firm posted earnings for the first quarter of 2022 on May 9, reporting earnings per share of $1.07, beating analysts’ expectations by $0.30. The revenue for the period was $2.88 billion, up more than 33% compared to the revenue over the same period last year and beating expectations by $270 million. The firm expects adjusted earnings to be between $270 million and $290 million for the second quarter of 2022.

On March 22, Bank of America analyst Steve Byrne upgraded Univar Solutions Inc. stock to Buy from Underperform and raised the price target to $41 from $32, citing a shift towards specialty products in the market.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Lyrical Asset Management is a leading shareholder in Univar Solutions Inc., with 5.3 million shares worth more than $151 million.

Just like Starbucks Corporation, AT&T Inc., and Exxon Mobil Corporation, Univar Solutions Inc. is one of the stocks that elite investors are buying.

In its Q4 2021 investor letter, Rhizome Partners highlighted a few stocks and Univar Solutions Inc. was one of them. Here is what the fund said:

“Univar Solutions Inc. reported a sharp rebound in performance relative to 2020. The company has largely completed its integration of the Nexeo acquisition, with little business interruption, a sharp contrast to Calumet Specialty’s experience. Univar is starting to show its true earnings power.”

9. Valvoline Inc. (NYSE:VVV)

Number of Hedge Fund Holders: 39

PE Ratio: 12.75

Valvoline Inc. (NYSE:VVV) markets automotive maintenance products. In early April, the company announced that it had renewed a pre-existing partnership with baseball team Toronto Blue Jays. As part of the new agreement, the marketing rights have been extended and the Valvoline brand will be displayed behind the home plate during all regular season home games. The firm also plans to display LED signage during select home games to increase presence on the pitch further.

On May 12, JPMorgan analyst Jeffrey Zekauskas upgraded Valvoline Inc. stock to Overweight from Neutral and raised the price target to $36 from $30, noting the firm was doing a “good job” of passing on higher raw material costs through price increases.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Brave Warrior Capital is a leading shareholder in Valvoline Inc., with 7.4 million shares worth more than $279 million.

In its Q2 2021 investor letter, Wasatch Core Growth Fund highlighted a few stocks and Valvoline Inc. was one of them. Here is what the fund said:

“Another significant contributor was Valvoline Inc., a company that manufactures lubricants and car parts and operates oil-change service centers. In addition to benefiting from the economic reopening, the company has discovered the advantages of making a mobile app available. Valvoline Inc. customers can use the app to find the closest service center and view live estimated wait times. Certainly, the adoption of technology to improve productivity and convenience isn’t a new theme. But we see mobile digitalization as a highly disruptive innovation that creates additional relationships among companies, distributors and customers. As a result, mobile digitalization is a competitive consideration in more and more of the companies that we evaluate for investment. In the first quarter, Valvoline’s stock declined partially because investors worried about the increasing popularity of electric vehicles (EVs)—which are much less dependent on petroleum products. But the stock rebounded in the second quarter, we think partly based on the realization that EVs still represent a tiny percentage of new cars sold and an even smaller percentage of cars in service. Moreover, Valvoline Inc. reported strong earnings and raised projections for the future.”

8. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 40

PE Ratio: 6.46

Teck Resources Limited (NYSE:TECK) is a diversified metals and mining firm. In late April, the company announced that it expected to generate more than $1 billion in annual benefits through a variety of tech-based transformative initiatives that are aimed at improving the operational performance, safety, and sustainability of the mining business. The rally in the prices of raw materials due to supply chain issues may raise these benefits to around $1.7 billion. The firm plans to capitalize on the long-term market growth of copper.

On May 2, investment advisory CIBC maintained a Neutral rating on Teck Resources Limited stock and raised the price target to C$52 from C$50. Analyst Bryce Adams issued the ratings update.

At the end of the fourth quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Teck Resources Limited, compared to 41 in the previous quarter worth $1.3 billion.

7. Capri Holdings Limited (NYSE:CPRI)

Number of Hedge Fund Holders: 43

PE Ratio: 14.23

Capri Holdings Limited (NYSE:CPRI) makes and sells branded apparel, accessories, and luxury goods. On March 9, the stock climbed over 8% after the company reaffirmed previous guidance for 2022, saying it expected revenue to be around $5.56 billion against consensus estimates of $5.57 billion, and diluted earnings per share to be around $6.00 versus estimates of $5.97. For the 2023 fiscal year, the firm guided revenue to be around $6.1 billion against estimates of $6.13 billion.

On April 19, Barclays analyst Adrienne Yih maintained an Overweight rating on Capri Holdings Limited stock and raised the price target to $74 from $72, noting that the firm was one of the “only frontline retailers that had positive sales-to-inventory spreads”.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Rima Senvest Management is a leading shareholder in Capri Holdings Limited, with 5.3 million shares worth more than $345 million.

In its Q4 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Capri Holdings Limited was one of them. Here is what the fund said:

“Capri Holdings Limited is a global fashion luxury group consisting of three brands: Michael Kors, accounting for 72% of fiscal year 2021 sales, Jimmy Choo, accounting for 10% of sales, and Versace, accounting for 18% of sales. The brands cover various fashion categories, including women’s and men’s accessories, footwear, ready-to-wear, wearable technology, watches, jewelry, eyewear and fragrance products. Capri Holdings Limited mainly operates within the $70 billion accessories segment of the global luxury market, which is growing 5% to 6% annually. Capri shares outperformed in the last three months of 2021 after the company reported strong results for the fiscal quarter ended September 25. Revenue, margins and earnings per share all beat management’s internal expectations, and the company raised its fiscal year 2022 outlook for all three brands, despite supply chain pressure. Capri Holdings Limited also approved a new two-year share repurchase program of up to $1 billion, replacing its existing $500 million program, which had $250 million of availability remaining.”

6. Crocs, Inc. (NASDAQ:CROX)

Number of Hedge Fund Holders: 43

PE Ratio: 4.96

Crocs, Inc. (NASDAQ:CROX) markets casual lifestyle footwear and accessories. The company posted earnings for the first quarter of 2022 on May 5, reporting earnings per share of $2.05, beating analyst expectations by $0.50. The revenue for the period was more than $660 million, up over 43% compared to the revenue over the same period last year and beating estimates by $38 million. In guidance for 2022, the company said it expected to grow revenue by 20% year-on-year in 2022.

On May 6, B Riley analyst Susan Anderson maintained a Buy rating on Crocs, Inc. stock with a price target of $128, highlighting that the demand for the products of the firm remained high in North America.

At the end of the fourth quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $994 million in Crocs, Inc., up from 37 in the preceding quarter worth $1 billion.

Along with Starbucks Corporation, AT&T Inc., and Exxon Mobil Corporation, Crocs, Inc. is one of the stocks that hedge funds have their eye on.

5. Ovintiv Inc. (NYSE:OVV)

Number of Hedge Fund Holders: 44

PE Ratio: 8.32

Ovintiv Inc. (NYSE:OVV) markets oil and natural gas. The firm has an impressive dividend history that stretches back over three decades. In the past four years, the dividend payouts have registered consistent growth. The sector median in this regard is just one year. On May 9, the company declared a quarterly dividend of $0.25 per share, an increase of around 25% from the previous dividend of $0.20. The forward yield was 2.11%. The dividend is payable to shareholders by the end of June.

On April 26, Citi analyst Scott Gruber maintained a Buy rating on Ovintiv Inc. stock and raised the price target to $64 from $46, citing updated models for small-cap exploration and production companies as one of the reasons behind the upgrade.

At the end of the fourth quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Ovintiv Inc., the same as in the previous quarter worth $684 million.

In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Ovintiv Inc. was one of them. Here is what the fund said:

“The outlook for high multiple favorites depends to a great degree on interest rates. Warren Buffett likened interest rates to the force of gravity for asset prices. At current low levels, high valuations on long-duration assets can be justified. If interest rates move up, the adjustment will be painful. Market action early in the new year, with the swift moves up in interest rates and down in the Nasdaq, offers a taste of the medicine.

We underwrite all our names to have sufficient upside even if risk-free rates move up to 3% (a scenario, not a forecast!). As we evaluate the opportunity set, we find more attractive prospects in the classic value names. We often hear that people think value investing is dead, which only strengthens our conviction. Our gross exposure to classic value has risen from 44% a year ago to 62% currently.” (Click here to read full text)

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49

PE Ratio: 15.55

Target Corporation (NYSE:TGT) is a general merchandise retailer. The company posted earnings for the first quarter of 2022 on May 18, reporting a revenue of $25.1 billion, up close to 4% compared to the revenue over the same period last year and beating expectations by $690 million. The comparable sales over the first three months of 2022 grew 3.3%, reflecting traffic growth of 3.9%. The digital comparable sales were also up by 3.2%. The firm expects operating income margin rate to be around 6% in 2022.

On May 19, Bank of America analyst Robert Ohmes maintained a Buy rating on Target Corporation stock and lowered the price target to $235 from $289, noting that food inflation would continue to benefit traffic and comp sales.

Among the hedge funds being tracked by Insider Monkey, Florida-based GQG Partners is a leading shareholder in Target Corporation, with 4.9 million shares worth more than $1.1 billion.

In its Q2 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and Target Corporation was one of them. Here is what the fund said:

“We added Target Corporation to our consumer staples sector. Target Corporation offers a broad array of products in owned and known brand items at affordable prices. Its omni-channel fulfillment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target Corporation is an attractive holding.”

3. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 53

PE Ratio: 19.57

Starbucks Corporation is a specialty coffee firm. The stock has gained in the past few days after Howard Schultz, the CEO of the firm, purchased more than 137,000 shares of the company in two separate transactions. The average price paid for these shares, worth around $10 million in total, was $72.61 and $73.10 per share in the two transactions. Unionization and COVID-related problems, especially in China, have hit the stock in recent months, but strength of the business in the US is offsetting some of these setbacks.

On May 4, MKM Partners analyst Brett Levy maintained a Buy rating on Starbucks Corporation stock and lowered the price target to $98 from $105, backing the firm with regards to growth prospects in the long-term despite near-term headwinds.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Starbucks Corporation, with 11.5 million shares worth more than $1.3 billion.

In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Starbucks Corporation was one of them. Here is what the fund said:

“For Starbucks Corporation, we believe the underlying businesses for the company remain strong. Starbucks Corporation has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”

2. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 70

PE Ratio: 8.52

AT&T Inc. is a telecommunications and media firm. On May 18, the company announced that it had reached an agreement with the Dish Network under which the latter will sell internet services of the former. Last year, the two companies had agreed to a $5 billion deal through which Dish made AT&T the primary partner for mobile virtual network operations. The internet services that Dish sells also include premier options like AT&T Fiber with Hyper-Gig speeds.

On April 25, Goldman Sachs analyst Brett Feldman reinstated coverage of AT&T Inc. stock with a Buy rating and a $23 price target, noting the valuation of the stock was attractive compared to large-cap peers.

At the end of the fourth quarter of 2021, 70 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in AT&T Inc., compared to 66 in the preceding quarter worth $3.2 billion.

In its Q4 2021 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and AT&T Inc. was one of them. Here is what the fund said:

“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 71

PE Ratio: 15.10

Exxon Mobil Corporation is an integrated oil and gas firm. The stock has gained over 41% this year as inflation due to supply chain problems and the war in Ukraine boosted energy prices across the globe. The firm is on track to generate over $50 billion in free cash flows this year. This will allow the company to pay the planned $15 billion in dividends in 2022 and complete a $15 billion share buyback program. The firm has been investing heavily in the core business as well, like refining projects in the Netherlands and Texas.

On May 9, Argus analyst Bill Selesky maintained a Buy rating on Exxon Mobil Corporation stock and raised the price target to $104 from $92, noting that the firm is set to benefit from strong energy market fundamentals.

At the end of the fourth quarter of 2021, 71 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Exxon Mobil Corporation, compared to 64 in the preceding quarter worth $4.6 billion.

In its Q4 2021 investor letter, Saturna Capital highlighted a few stocks and Exxon Mobil Corporation was one of them. Here is what the fund said:

“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon Mobil Corporation, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”

You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.

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