5 Undervalued Small-Cap Stocks to Buy Now

In this article, we discuss 5 undervalued small cap stocks to buy now. If you want our comprehensive analysis of these stocks, go directly to 10 Undervalued Small-Cap Stocks to Buy Now. 

5. The Aaron’s Company, Inc. (NYSE:AAN)

Number of Hedge Fund Holders: 16

P/E Ratio as of March 7: 6.77

Market Capitalization as of March 7: $1.47 billion

Headquartered in Atlanta, Georgia, The Aaron’s Company, Inc. (NYSE:AAN) offers lease-to-own and purchase solutions, selling furniture, appliances, electronics, computers, and accessories through franchised stores and an e-commerce platform in the United States and Canada. On February 24, The Aaron’s Company, Inc. (NYSE:AAN) posted its fourth quarter results, exceeding market consensus for earnings and revenue. 

On March 2, The Aaron’s Company, Inc. (NYSE:AAN) increased its share repurchase authorization to $250 million from the original $150 million plan. The program was also extended by one year to December 31, 2024. As of March 2, approximately $147 million remains available under this new authorization limit.

The Aaron’s Company, Inc. (NYSE:AAN) on February 21 declared a $0.1125 per share quarterly dividend, a 12.5% increase from its prior dividend of $0.10. The dividend is payable on April 5, to shareholders of record on March 17. 

The Aaron’s Company, Inc. (NYSE:AAN) announced that it has entered into a definitive agreement to acquire BrandsMart U.S.A. on February 23, for a total consideration of approximately $230 million in cash, and the transaction is expected to close in the second quarter of 2022. With this transaction, the management believes that The Aaron’s Company, Inc. (NYSE:AAN) will deliver over $3 billion in total annual revenues and over $300 million in adjusted EBITDA by year-end 2026.

A total of 16 hedge funds were bullish on The Aaron’s Company, Inc. (NYSE:AAN) in Q4 2021, compared to 17 funds in the previous quarter. The collective stakes held in the fourth quarter amounted to $59 million.