In this article, we discuss 5 undervalued stocks to buy today according to Paul Tudor Jones. If you want to see more undervalued stocks in the billionaire’s portfolio, click 10 Undervalued Stocks to Buy Today According to Paul Tudor Jones.
5. CBRE Group, Inc. (NYSE:CBRE)
Number of Hedge Fund Holders: 55
P/E Ratio as of May 27: 14.53
CBRE Group, Inc. (NYSE:CBRE) is a Texas-based commercial real estate services and investment company. It operates through three segments – Advisory Services, Global Workplace Solutions, and Real Estate Investments. Paul Tudor Jones reported owning 109,564 shares of CBRE Group, Inc. (NYSE:CBRE) in Q1 2022, worth $10 million. The billionaire elevated his position in the company by 26% in the March quarter.
On April 5, Goldman Sachs analyst Chandni Luthra initiated coverage of CBRE Group, Inc. (NYSE:CBRE) with a Buy rating and a $111 price target. The analyst likes CBRE Group, Inc. (NYSE:CBRE) for its “strong” sales growth given robust macro and micro fundamentals, the “high quality” earnings profile, and the fortress balance sheet with increasing optionality to return cash to shareholders.
Among the hedge funds tracked by Insider Monkey, 55 funds were long CBRE Group, Inc. (NYSE:CBRE) at the end of March 2022, up from 48 funds in the prior quarter. Harris Associates is the leading shareholder of the company, with 9.8 million shares worth $904.6 million.
Here is what Baron Real Estate Fund has to say about CBRE Group, Inc. (NYSE:CBRE) in its Q1 2022 investor letter:
“Following strong share price performance in 2021, the shares of leading commercial real estate services firm, CBRE Group, Inc. (NYSE:CBRE) declined in the most recent quarter. We believe the current valuations of the company are compelling. Further, we believe the company is well-positioned to benefit from long-term growth opportunities that include a growing list of companies looking to outsource their commercial real estate needs, the growth in institutional ownership of commercial real estate, and attractive acquisition opportunities given their highly desirable global platforms and strong balance sheets.”
4. Fortune Brands Home & Security, Inc. (NYSE:FBHS)
Number of Hedge Fund Holders: 34
P/E Ratio as of May 27: 12.55
Fortune Brands Home & Security, Inc. (NYSE:FBHS) was incorporated in 1988 and is headquartered in Deerfield, Illinois. It offers home repair, remodeling, new construction, and security applications for residential customers. In the first quarter of 2022, Paul Tudor Jones boosted his stake in Fortune Brands Home & Security, Inc. (NYSE:FBHS) by 21%, holding 136,022 shares worth $10.1 million.
On May 9, Credit Suisse analyst Daniel Oppenheim raised the price target on Fortune Brands Home & Security, Inc. (NYSE:FBHS) to $95 from $90 and maintained an Outperform rating on the shares after the Q1 results. While Fortune Brands Home & Security, Inc. (NYSE:FBHS) announced its plan to spin off its cabinets business, the analyst would not be surprised to see the announcement lead to inbound calls, most likely from private equity firms.
According to Insider Monkey’s first quarter database, 34 hedge funds were bullish on Fortune Brands Home & Security, Inc. (NYSE:FBHS), up from 27 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest shareholder of the company, with 1.2 million shares worth $96 million.
3. TEGNA Inc. (NYSE:TGNA)
Number of Hedge Fund Holders: 44
P/E Ratio as of May 27: 9.76
TEGNA Inc. (NYSE:TGNA) is one of the undervalued stocks in Paul Tudor Jones’ Q1 portfolio, with his hedge fund increasing its hold on the company by 47%. Tudor Investment Corp owned 674,868 shares of TEGNA Inc. (NYSE:TGNA), worth over $15 million. TEGNA Inc. (NYSE:TGNA) is an American broadcast, television, digital media, and marketing services company.
Wells Fargo analyst Steven Cahall downgraded TEGNA Inc. (NYSE:TGNA) on May 5 to Equal Weight from Overweight with a price target of $24, up from $23. With a pending deal for TEGNA Inc. (NYSE:TGNA) to be acquired by Standard General at $24 per share, the analyst sees lower upside compared to Broadcast competition. He sees low risk to the deal.
Among the hedge funds tracked by Insider Monkey, TEGNA Inc. (NYSE:TGNA) was found in the public stock portfolios of 44 funds at the end of Q1 2022, compared to 45 funds in the preceding quarter. Matthew Halbower’s Pentwater Capital Management is the largest shareholder of the company, with a position worth $159.3 million.
2. Old Republic International Corporation (NYSE:ORI)
Number of Hedge Fund Holders: 28
P/E Ratio as of May 27: 5.40
Old Republic International Corporation (NYSE:ORI) is based in Chicago, Illinois, providing insurance underwriting and related services in the United States and Canada. Old Republic International Corporation (NYSE:ORI) was a new arrival in Paul Tudor Jones’ Q1 2022 portfolio, with the billionaire purchasing 376,057 shares of the company, worth $9.7 million.
On April 29, Raymond James analyst C. Gregory Peters downgraded Old Republic International Corporation (NYSE:ORI) to Outperform from Strong Buy with a price target of $28, down from $30. He forecasts short-term challenges in the Title business as a result of high interest rates and cited lower refinancing activity for the downgrade.
Among the hedge funds tracked by Insider Monkey, 28 funds were long Old Republic International Corporation (NYSE:ORI) in the first quarter of 2022, compared to 27 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest shareholder of the company, with more than 2 million shares worth $53.5 million.
1. B. Riley Financial, Inc. (NASDAQ:RILY)
Number of Hedge Fund Holders: 21
P/E Ratio as of May 27: 9.29
Riley Financial, Inc. (NASDAQ:RILY) is a California-based investment banking and financial services company. B. Riley Financial, Inc. (NASDAQ:RILY) operates through six segments – Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments Communications, and Brands. Securities filings for Q1 2022 disclose that Paul Tudor Jones owned 311,785 shares of B. Riley Financial, Inc. (NASDAQ:RILY), worth $21.8 million, representing 0.51% of the total 13F holdings.
On April 29, B. Riley Financial, Inc. (NASDAQ:RILY) declared a $1.00 per share quarterly dividend, in line with previous. The forward yield was 8.83%. The dividend was distributed to shareholders on May 20.
According to Insider Monkey’s Q1 data, B. Riley Financial, Inc. (NASDAQ:RILY) was part of 21 hedge fund portfolios, compared to 24 funds in the earlier quarter. Chuck Royce’s Royce & Associates is the biggest shareholder of the company, with 428,691 shares worth about $30 million.
You can also take a look at 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital and 10 Favorite Stocks of Dan Loeb’s Third Point.
