5 Undervalued Smallcap Stocks Billionaires Are Quietly Loading Up On

3. Power Solutions International, Inc. (NASDAQ:PSIX)

Number of Billionaire Holdings: 12

Forward PE Ratio: 12.91

Power Solutions International, Inc. (NASDAQ:PSIX) is one of the cheap stocks to buy now.

TheFly reported on March 24 that Jefferies kept PSIX at a Buy rating while lowering the price target to $92.90 from $110.51. The revision follows the company’s fourth-quarter results and reflects management’s focus on improving facility utilization after expanding operations in Wisconsin.

Separately, earlier on March 2, Power Solutions International, Inc. (NASDAQ:PSIX) completed the acquisition of MTL Manufacturing & Equipment Inc., a metal and steel manufacturer based in Beloit, Wisconsin, near PSI’s enclosure facilities. MTL produces a variety of fabricated products, including switchgear subbases, electrical enclosure assemblies, and fuel tanks for large power generation systems, and offers full engineering capabilities alongside vertically integrated manufacturing.

The company holds multiple certifications, such as UL142, ULC S601, and UL2085, and operates over 185,000 square feet of advanced manufacturing space across two locations. The acquisition, funded through PSI’s cash reserves and certain equipment-related debt, is designed to strengthen PSIX’s position in the data center market by improving supply chain control, reducing lead times, and leveraging MTL’s specialized production and certifications. MTL’s management team will continue to oversee operations, ensuring continuity while combining the strengths of both companies to meet growing demand for high-quality, reliable power solutions.

Power Solutions International, Inc. (NASDAQ:PSIX) is a provider of integrated energy products and services, including batteries, fuel cells, and backup power systems, serving industrial, commercial, and utility customers with reliable energy storage and power solutions.