20 Most Undervalued Stocks Being Chased by the Smart Money

The following is a list of undervalued stocks, when comparing Monday's close to the average analyst target price (i.e. discount to analyst fair value). All of these stocks have market caps north of $1.0B, and have seen significant institutional inflows over the last 3 months.

The smart money seems to think these stocks are undervalued. What do you think? Institutional data sourced from Reuters.com, and analyst target prices sourced from Zacks Investment Research.

The list has been sorted by the increase in institutional ownership.

1. Popular Inc. (BPOP): Market cap of $1.6B. Last close at $2.53, vs. avg. target price of $4.57 (implies a discount of -44.64% to analyst fair value, based on a survey of 7 analysts). Institutional investors currently own 739,861,848 shares vs. 308,786,491 shares held 3 months ago (+139.6% change).

2. Fortress Investment Group LLC (FIG): Market cap of $1.5B. Last close at $3.17, vs. avg. target price of $6.50 (implies a discount of -51.23% to analyst fair value, based on a survey of 6 analysts). Institutional investors currently own 42,899,849 shares vs. 33,894,291 shares held 3 months ago (+26.57% change). (more)