• Commscope Holding Company, Inc. (NASDAQ:COMM) is identified as one of the most undervalued penny stocks according to hedge funds, ranking 4th on a recent list. The company operates in the communications infrastructure sector, providing solutions for data centers and entertainment networks. Its recent financial performance shows a 4.5% year-over-year revenue increase in its Connectivity and Cable Solutions segment, driven by a booming data center market, particularly in enterprise fiber products, which saw a 73% revenue increase.

• The company is currently expanding its production capacity to meet the growing demand from the data center market, projected to grow over 30% annually. Commscope's strategic moves include a significant debt refinancing and the sale of its OWN and DAS businesses for $2.1 billion, which will help reduce its debt load. These developments position Commscope favorably in a competitive landscape, especially as it focuses on long-term trends in AI and automation, which are expected to drive future growth.