Top 5 Undervalued Tech Stocks

3. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 63 

PE Ratio: 9.88

Verizon Communications Inc. (NYSE:VZ) is a US-based company which offers a range of wireless communication services.

On January 26, Deutsche Bank analyst Bryan Kraft raised the firm’s price target on Verizon Communications Inc. (NYSE:VZ) to $59 from $57, and maintained a ‘Hold’ rating on the shares, noting that he sees about 8% upside in the stock over the next 12 months, and has increased the price target owing to higher free cash flow estimates for the year. In February, Verizon Communications Inc. (NYSE:VZ) partnered with carmaker Audi to bring 5G connectivity to its US automobile lineup. In its Investor Day presentation in March, Verizon announced that it estimates a $120 billion sales opportunity from 5G sales over the next 5 years.

63 out of 924 elite hedge funds tracked by Insider Monkey held stakes worth $10.8 billion in Verizon Communications Inc. (NYSE:VZ) during the fourth quarter. This shows growing investor confidence from the previous quarter, where 57 hedge funds reported bullish bets on the company shares. Warren Buffett’s Berkshire Hathaway was the top shareholder of Verizon Communications Inc. (NYSE:VZ) in the fourth quarter, with more than 158 million shares valued at $8.25 billion.

For the fourth quarter, Verizon Communications Inc. (NYSE:VZ) reported an EPS of $1.31, outperforming estimates by $0.03. Revenue of $34.07 billion was also above analysts’ forecasts by $30.57 million.

Investment firm Miller/Howard Investments talked about Verizon Communications Inc. (NYSE:VZ) in its Q1 2021 investor letter, stating:

“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”