Smart Money Ratings For 20 Most Undervalued Stocks

3. Hillenbrand, Inc. (NYSE:HI)

Insider Transaction: 2.19%

Upside Potential: 71.41%

Forward P/E: 8.86

Headquartered in Indiana, a diversified industrial company, Hillenbrand, Inc. (NYSE:HI) operates through Advanced Process Solutions, Molding Technology Solutions, and Batesville. The company manufactures equipment for processing plastics, food, and recycling materials, focusing on burial caskets. Its key competitors include Illinois Tool Works and Dover Corporation. Hillenbrand, Inc. (NYSE:HI) gains its competitive advantage through strategic acquisitions and international expansion. Factors including capital goods demand, shifting mindset toward automation, and circular industrial practices affect company growth prospects.

Hillenbrand, Inc. (NYSE:HI) is trading at 7.33% above its 52-week low, indicating early momentum. The company’s revenue of $716 million surpassed expectations, irrespective of the macroeconomic challenges. Hillenbrand, Inc. (NYSE:HI) has divested 51% of its interest in the Milliron injection molding and extrusion business, and this is anticipated to increase the focus on the company’s core strengths. Through alternative sourcing, surcharge pricing, and a strong global footprint, the company is improving its resilience against tariff rate changes and anticipates a full-year EPS of $2.10 to $2.45 in 2025.

Trading at a forward P/E of 8.86, the stock is undervalued relative to earnings expectations. Moderately encouraging, the insider transactions have risen by 2.19% in the last six months. Hillenbrand, Inc. (NYSE:HI) garners steady institutional attention from 21 hedge funds. Meanwhile, the company’s upside potential of 71.41%, as forecasted by analysts, increases the stock’s appeal to growth-focused investors.