5 Undervalued Stocks to Buy Now

4. Dell Technologies Inc. (NYSE:DELL)  

Number of Hedge Fund Holders: 60

PE Ratio: 6.9

Dell Technologies Inc. (NYSE:DELL) is a holding company that provides IT solutions, products, and services around the globe. The Texas-based company operates through its segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware.

For the third quarter, Dell Technologies Inc. (NYSE:DELL) reported earnings per share of $2.37, beating estimates by $0.07.

On November 24, BofA analyst Wamsi Mohan maintained a ‘Buy’ rating on Dell Technologies Inc. (NYSE:DELL) shares, and raised the price target to $68 from $66, noting that PC demand was expected to sustain into the next year, as the company’s Q3 results beat estimates.

60 hedge funds tracked by Insider Monkey held stakes worth $6.14 billion in Dell Technologies Inc. (NYSE:DELL) at the end of the third quarter. In comparison, 62 hedge funds held $5.60 billion worth of stakes in the company a quarter ago.

Investment management firm Third Point Management mentioned Dell Technologies Inc. (NYSE:DELL) in its Q3 investor letter. Here’s what the fund said:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”