10 Highly Undervalued Large Caps Being Bought Up By Smart Money

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 |  Includes: ADM, BA, CF, INTC, NFLX, NOC, PPG, STT, TSM, TXN
by: Kapitall

Analysts follow the buying trends of institutional investors (mostly comprised of hedge fund managers and mutual fund managers) because they spend more time analyzing companies than most investors – this is why they’re referred to as the “smart money.”

We ran a screen on large-cap companies that appear highly undervalued, with lower TTM P/E, PEG, and TTM P/CF than their industry peers. We screened these companies for those seeing significant net institutional buying over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think the smart money is calling it right on these names? Use this list as a starting-off point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. CF Industries Holdings, Inc. (NYSE:CF): Agricultural Chemicals Industry. Market cap of $12.33B. TTM P/E at 12.18 vs. industry average at 13.48. PEG at 1.11 vs. industry average at 1.38. TTM P/CF at 8.84 vs. industry average at 11.33. Net institutional shares purchased over the current quarter at 3.9M, which is 5.46% of the company's 71.44M share float. The stock has had a couple of great days, gaining 15.23% over the last week.

2. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Semiconductor Industry. Market cap of $59.65B. TTM P/E at 10.37 vs. industry average at 15.4. PEG at 0.69 vs. industry average at 1.04. TTM P/CF at 6.43 vs. industry average at 13.31. Net institutional shares purchased over the current quarter at 169.4M, which is 3.99% of the company's 4.25B share float. The stock is currently stuck in a downtrend, trading 8.32% below its SMA20, 10.49% below its SMA50, and 8.97% below its SMA200. The stock has gained 22.84% over the last year.

3. Northrop Grumman Corporation (NYSE:NOC): Aerospace/Defense Industry. Market cap of $14.67B. TTM P/E at 8.26 vs. industry average at 16. PEG at 1.05 vs. industry average at 1.38. TTM P/CF at 6.13 vs. industry average at 9.86. Net institutional shares purchased over the current quarter at 8.5M, which is 3.07% of the company's 277.19M share float. The stock is a short squeeze candidate, with a short float at 6.34% (equivalent to 5.51 days of average volume). The stock is currently stuck in a downtrend, trading 12.83% below its SMA20, 20.17% below its SMA50, and 17.99% below its SMA200. The stock has had a couple of great days, gaining 5.33% over the last week. The stock has performed poorly over the last month, losing 18.09%.

4. Archer Daniels Midland Company (NYSE:ADM): Farm Products Industry. Market cap of $18.07B. TTM P/E at 9.08 vs. industry average at 9.97. PEG at 0.91 vs. industry average at 1.8. TTM P/CF at 6.2 vs. industry average at 14.6. Net institutional shares purchased over the current quarter at 19.5M, which is 3.06% of the company's 637.15M share float. The stock is currently stuck in a downtrend, trading 6.03% below its SMA20, 7.79% below its SMA50, and 14.72% below its SMA200. The stock has had a couple of great days, gaining 8.88% over the last week.

5. State Street Corp. (NYSE:STT): Regional Bank. Market cap of $17.55B. TTM P/E at 10.98 vs. industry average at 16.52. PEG at 0.87 vs. industry average at 1.25. TTM P/CF at 8.06 vs. industry average at 9.18. Net institutional shares purchased over the current quarter at 7.1M, which is 1.43% of the company's 494.86M share float. The stock is currently stuck in a downtrend, trading 15.51% below its SMA20, 21.87% below its SMA50, and 26.32% below its SMA200. The stock has performed poorly over the last month, losing 17.16%.

6. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $108.54B. TTM P/E at 9.35 vs. industry average at 15.4. PEG at 0.84 vs. industry average at 1.04. TTM P/CF at 6.39 vs. industry average at 13.31. Net institutional shares purchased over the current quarter at 67.5M, which is 1.29% of the company's 5.25B share float. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.06%, current ratio at 2.23, and quick ratio at 1.84. The stock is currently stuck in a downtrend, trading 8.32% below its SMA20, 9.21% below its SMA50, and 6.99% below its SMA200. The stock has gained 9.13% over the last year.

7. Netflix, Inc. (NASDAQ:NFLX): Music & Video Stores Industry. Market cap of $12.20B. TTM P/E at 58.94 vs. industry average at 73.7. PEG at 1.88 vs. industry average at 2.31. TTM P/CF at 17.28 vs. industry average at 41.2. Net institutional shares purchased over the current quarter at 650.0K, which is 1.27% of the company's 51.12M share float. The stock has performed poorly over the last month, losing 19.16%.

8. Boeing Co. (NYSE:BA): Aerospace/Defense Products & Services Industry. Market cap of $46.08B. TTM P/E at 13.2 vs. industry average at 16. PEG at 1.1 vs. industry average at 1.38. TTM P/CF at 8.79 vs. industry average at 9.86. Net institutional shares purchased over the current quarter at 8.3M, which is 1.24% of the company's 668.44M share float. The stock is currently stuck in a downtrend, trading 10.56% below its SMA20, 15.97% below its SMA50, and 16.3% below its SMA200. The stock has had a couple of great days, gaining 8.31% over the last week. The stock has performed poorly over the last month, losing 11.23%.

9. Texas Instruments Inc. (NYSE:TXN): Semiconductor Industry. Market cap of $31.11B. TTM P/E at 10.36 vs. industry average at 15.32. PEG at 0.99 vs. industry average at 1.07. TTM P/CF at 7.73 vs. industry average at 13.45. Net institutional shares purchased over the current quarter at 13.9M, which is 1.21% of the company's 1.15B share float. The stock is currently stuck in a downtrend, trading 11.78% below its SMA20, 17.05% below its SMA50, and 22.88% below its SMA200. The stock has performed poorly over the last month, losing 13.93%.

10. PPG Industries Inc. (NYSE:PPG): Specialty Chemicals Industry. Market cap of $11.86B. TTM P/E at 11.88 vs. industry average at 13.41. PEG at 1.06 vs. industry average at 1.39. TTM P/CF at 7.99 vs. industry average at 11.26. Net institutional shares purchased over the current quarter at 1.9M, which is 1.21% of the company's 157.05M share float. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.03%, current ratio at 1.85, and quick ratio at 1.38. The stock is currently stuck in a downtrend, trading 12.38% below its SMA20, 16.87% below its SMA50, and 16.94% below its SMA200. The stock has performed poorly over the last month, losing 15%.

*Price multiples and institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.