Hedge Funds Love These 5 Undervalued Mid-Cap Stocks

In this article, we discuss the 5 undervalued mid-cap stocks that hedge funds love. If you want to read about some more undervalued mid-cap stocks, go directly to Hedge Funds Love These 10 Undervalued Mid-Cap Stocks. 

5. Berry Global Group, Inc. (NYSE:BERY)

Number of Hedge Fund Holders: 43 

PE Ratio: 11.23  

Berry Global Group, Inc. (NYSE:BERY) operates in the metals and glass industry. Some of the products it markets include pharmaceutical devices, bottles and canisters, containers, and technical components, among others. On February 3, the firm announced a new share buyback program worth $1 billion. The program was announced on the same day that the firm posted earnings for the first quarter of 2022, beating market estimates on revenue by a handsome $140 million but missing on earnings per share. 

On March 8, Citi analyst Anthony Pettinari maintained a Buy rating on Berry Global Group, Inc. (NYSE:BERY) stock with a price target of $87. Other analysts like Morgan Stanley, Truist, and Wells Fargo are also bullish on the stock. 

At the end of the fourth quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Berry Global Group, Inc. (NYSE:BERY), up from 39 in the previous quarter worth $1.2 billion.

In its Q3 2021 investor letter, Rhizome Partners highlighted a few stocks and Berry Global Group, Inc. (NYSE:BERY) was one of them. Here is what the fund said:

“Berry Global Group, Inc. (NYSE:BERY) does what Berry Global Group, Inc. (NYSE:BERY) does well. It generates a good chunk of cash flow. Building on our Berry Global experience, we built a 3% position in the SPAC warrants of Gores Holdings V. The company purchased the aluminum-packaging business of Ardagh and now trades as Ardagh Metal Packaging. Unlike most SPACs, Gores has a track record of achieving its EBITDA forecast. Ardagh Metal trades at a significant discount to Ball Corporation and has more exposure to higher-margin specialty cans. We believe the SPAC warrants have 3-4x upside and the common stock has the potential to double. The company may force us to exchange the warrants for common shares at a premium. In that case, our upside will be capped at about a triple.”