5 Undervalued Stocks to Buy According to Billionaire Joel Greenblatt

In this article, we discuss the 5 undervalued stocks to buy according to billionaire Joel Greenblatt. If you want to read about some more stocks in the Greenblatt portfolio, go directly to 10 Undervalued Stocks to Buy According to Billionaire Joel Greenblatt. 

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

Number of Hedge Fund Holders: 70

PE Ratio: 8.68  

AT&T Inc. (NYSE:T) is a telecommunications, media, and technology firm. Regulatory filings show that Gotham Asset Management owned 411,045 shares in the company at the end of December 2021 worth $10.1 million, representing 0.32% of the portfolio. The fund increased its stake in the firm by 4% between October and December compared to third quarter filings. 

AT&T Inc. (NYSE:T) has been in the Greenblatt portfolio since late 2012, with minor exceptions in 2016 and 2018. The first stake of the firm in the stock consisted of just 18,000 shares purchased at an average price of $34.70 per share. As inflation rises, the fund has been steadily piling into the stock, increasing its stake in the firm the past three quarters.

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. (NYSE:T), 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. (NYSE:T) 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. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”