5 Undervalued Stocks in Ken Fisher’s 2022 Portfolio

4. Shell Plc (NYSE:SHEL)

Fisher Asset Management’s Stake Value: $1,076,420,000

Percentage of Fisher Asset Management’s 13F Portfolio: 0.63% 

PE Ratio as of June 14: 5.68

Number of Hedge Fund Holders: 37

On May 5, Shell Plc (NYSE:SHEL) released earnings for the first quarter of fiscal year 2022. The company generated a revenue of $84.20 billion, up 51.27% year over year, and outperformed expectations by $39.36 billion. Shell Plc (NYSE:SHEL) reported earnings per share of $2.40 for the quarter, ahead of expectations by $0.21.

This June, Credit Suisse analyst Amy Wong initiated coverage of Shell Plc (NYSE:SHEL) with an Outperform rating and a 3,000 GBP price target, labeling the company as her top pick in the European integrated energy market.

As of June 14, Shell Plc (NYSE:SHEL) has gained 55.87% over the past twelve months and has a PE ratio of 5.68, along with a trailing twelve-month dividend yield of 1.75%.

In the first quarter of 2022, Fisher Asset Management went long in Shell Plc (NYSE:SHEL) and purchased 19.59 million shares of the company. As of March 31, the fund’s stakes in Shell Plc (NYSE:SHEL) are valued at $1.07 billion, which covers 0.63% of its investment portfolio.

At the end of Q1 2022, 37 hedge funds disclosed ownership of stakes in Shell Plc (NYSE:SHEL). The total stakes of these hedge funds in the company were valued at $5.63 billion, up from $2.63 billion in the prior quarter with 41 positions.

Grantham Mayo Van Otterloo & Co. LLC, an asset management firm, recently published its first-quarter 2022 investor letter in which it mentioned Shell Plc (NYSE:SHEL). Here is what the firm had to say:

“The market is simply not valuing resource companies at reasonable levels given any plausible base case for how the world might play out, in our opinion. With oil prices up around 65% and natural gas prices up hundreds of percent since the beginning of 2020, Shell (NYSE:SHEL), a bellwether for the oil and gas industry, is more or less flat. With the movement in oil and gas prices, one would have expected Shell’s stock price to surge. It didn’t, however, leaving Shell at very attractive valuation levels. At commodity prices as of the end of the first quarter, Shell would be cranking out free cash flow yields of 22-23% for the next few years according to our models.”