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Due to its obvious nature, one of the most commonly repeated pieces of advice regarding stock investment is to buy undervalued stocks when they trade low and sell overvalued stocks when they trade high. Achieving this outcome consistently would be ideal. However, the challenge lies not only in identifying overvalued and undervalued stocks trading at appreciated or depressed prices but also in those with promising potential.

There may be several reasons why undervalued stocks do not reflect their intrinsic value. First and foremost, one must carefully evaluate whether seemingly undervalued stocks do not warrant their current pricing due to underlying issues. Although investors are not typically irrational, differing interests and motivations can result in undervalued stocks and present opportunities. Valuation is almost always subjective in nature.

Sentiment, varying investment objectives, or sector uncertainty can also drive undervalued stocks to trade below their true value, with some offering good rebounding prospects. For instance, institutional investors typically prefer less volatile stocks. Thus, they may reduce allocations if a stock experiences above-average volatility, producing undervalued stocks. Upon improvement of conditions, institutional investment and valuations can start recovering.

Astute traders seeking assets trading at a discount with ambitions of future outperformance may focus on undervalued stocks with valuations below the industry average. The following undervalued stocks could be worth consideration.​

Amgen (AMGN)

Amgen (NASDAQ:AMGN), one of the largest biotechnology companies in the world, has seen its share price underperform so far in 2024. However, the pricing of the undervalued stock is likely temporary, as Amgen acquired Horizon Therapeutics in late 2023 and is currently integrating Horizon’s assets. Together, the combined companies have a robust pipeline of drug candidates in development, which could boost the undervalued stock price upon approval. One interesting candidate is AMG133, which targets the fast-growing weight loss segment.

At a price-to-earnings (P/E) ratio of 21.6x, Amgen is one of the undervalued stocks to consider relative to the average U.S. pharmaceutical industry P/E ratio of 76.9x. Amgen’s current share price of $267.28 per share and promising pipeline position it as one of the undervalued stocks with strong potential, with analysts forecasting an average price target of $308.33 per share.​

Canadian Solar (CSIQ)

The solar panel company Canadian Solar (NASDAQ:CSIQ) has declined over 35% year-to-date (YTD) amid significant uncertainty in the solar industry, being the second pick in this list of undervalued stocks. Challenges include slowing demand driven by rising interest rates and evolving incentives for solar panel installation. However, investors with a long-term view that renewable energy will power future economic growth may find value in Canadian Solar’s currently undervalued stock price. At the start of the year, institutional investor BlackRock (NYSE:BLK) committed $500 million to the company, suggesting other analysts also perceive promise in the industry.

Canadian Solar trades at a P/E ratio of just 3.3x, well below the energy sector average of 12.1x — highlighting its potential as an undervalued stock. Canadian Solar warrants consideration for investors pursuing opportunities in undervalued stocks that are well-positioned for renewable energy’s role in tomorrow’s economy.​ Analysts recommend an average price target of $31.55 per share, a 100% upside from current levels of $15.75.

Diana Shipping (DSX)

Recent events have highlighted the shipping industry, including the Red Sea crisis and the Baltimore Harbor accident. Shipping can be a complex investment area due to its cyclical nature. After the pandemic, cargo prices dropped significantly, resulting in sizable profit cuts across the sector. This included Diana Shipping (NASDAQ:DSX) halving its dividend. However, indicators suggest that the undervalued stocks in the industry may be reversing as shipping rates increase. Additionally, the U.S. economy appears to be avoiding a severe downturn, and geopolitical factors are raising demand for shipping capacity.

Diana Shipping trades at a P/E ratio of only 4.6x while offering a substantial 18.2% dividend yield. Given these metrics and recovering industry conditions, Diana Shipping presents an opportunity for growth.​ In April, thirteen analysts recommended buying this one of the undervalued stocks, up by just five in March, with an average price target 17% above its current share price of $2.91.

On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The stock market has been ablaze in the past year, fueled by a handful of growth stocks to buy. Over the past year, artificial intelligence (AI) became a key catalyst for the stock market, with growth stocks serving as vehicles to capitalize on this trend. Consequently, the Invesco S&P 500 Pure Growth ETF (NYSEARCA:RPG), which targets the crème de la crème of growth stocks to buy now within the S&P 500, shot up roughly 18% last year. 

However, following the robust rallies last year, it is imperative to tread cautiously now to minimize your downside risk. Nevertheless, growth stocks with solid fundamentals and long-term catalysts remain as relevant as ever. Here are three that perfectly fit the description.

Growth Stocks to Buy Now: Li Auto (LI)

Chinese EV giant Li Auto (NASDAQ:LI) wrapped up another impressive first-quarter (Q1), surpassing its revised guidance to deliver 80,400 vehicles. Also, it surpassed 700,000 cumulative deliveries as of last month, a massive milestone given the slowdown in the EV market. Moreover, in the past month alone, it delivered 28,984 vehicles, representing more than a 39% increase on a year-over-year (YOY) basis. 

However, LI stock finds itself in the red, with it down more than 15% last month. The correction has plenty to do with the company cutting its Q1 guidance by 24% to 77,000 vehicles. Though a cause for concern, Li Auto’s outperforming its revised guidance points to a stronger-than-anticipated demand for its cars. 

Furthermore, it’s important to note that the company is profitable, a rarity in the EV industry. Wall-Street analysts sense the error in investors’ ways, assigning LI stock a ‘strong buy’ rating and expecting a healthy 75% upside potential ahead.

Celsius Holdings (CELH)

There’s not much to criticize about sports beverage giant Celsius Holdings (NASDAQ:CELH) at this point. CELH stock is up over 48% year-to-date (YTD), with its underlying business firing over the past several quarters. It comfortably outperformed analyst estimates across both lines in three of the past four quarters, reporting triple-digit YOY revenue growth in each. 

In its most recent quarter, it generated a whopping $347 million in sales, representing a 95% jump YOY. However, its bottom line was more impressive, which showed a net income of $50.1 billion, shifting from a $21.2 million net loss in the fourth quarter of 2022.

It currently generates the bulk of its domestic sales, but its foray into international markets could add new layers to its growth story in the upcoming quarters. It’s currently in the early stage of its expansion into foreign markets, but given its incredible track record, you wouldn’t want to bet against the business.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) stock may seem boring, but its investors are happily banking massive gains over the past year or so. The company has positioned itself as a needle-mover in the AI realm, a move that’s served it incredibly well. In the past year, MSFT stock is up over 50%, surpassing broader market gains by more than 20%. 

As we advance, AI will continue to be a major theme for the company. It has effectively layered AI tech throughout its product lineup, yielding substantial benefits for its business. In a recent article, I talked about how the company has exceeded analyst projections by an average of $1.35 billion over the past four quarters. These bombastic results have everything to do with integrating AI into the company DNA, which will continue yielding incredible gains down the road. Meanwhile, its cloud business continues to fire, while new products such as Microsoft Copilot could generate over $25 billion in additional sales by 2025.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

While any market endeavor carries a level of risk, if you want the highest return possible, you’re likely going to have to turn to speculative tech stocks. It’s not just about the narrative but the numbers behind them.

According to data compiled by Statista, revenue tied to just the technology hardware market may reach $807.29 billion in 2028. Combine that with other innovations in software, telecommunications, cloud services and many other categories, the potential appears limitless.

Of course, not every idea will be a hit. However, these high-growth tech stocks just might turn $10,000 into a cool million over the long run.

GDS (GDS)

Falling under the information technology (IT) services, GDS (NASDAQ:GDS) develops and operates data centers in China. Per its public profile, GDS provides colocation services comprising critical facilities space, customer-available power, racks and cooling. It also offers other services such as network management, data storage and system security. While relevant, GDS stock is a volatile asset, losing almost 23% since the start of the year.

To be sure, the company’s financial performance last fiscal year was all over the map. In the first and third quarters, the average quarterly surprise was 22.35% below consensus expectations. However, in Q2 and Q4, the average quarterly surprise shot up to 49.1%.

For the current fiscal year, analysts believe revenue could hit $1.58 billion. That’s up 15% from last year’s tally of $1.38 billion. Even more enticingly, they’re projecting sales to land at $1.82 billion, up another 15% from projected 2024 sales.

Lastly, covering experts rate GDS a consensus strong buy with a $15.35 price target, implying almost 128% upside potential. It’s one of the tech stocks to consider for speculators.

Sono-Tek (SOTK)

Operating under the scientific and technical instruments category, Sono-Tek (NASDAQ:SOTK) designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial and research and development worldwide. Since the start of the year, SOTK lost almost 19% of equity value, reflecting the volatility of the name.

Still, there could be an opportunity here for speculators based on underlying relevancies, particularly for the burgeoning alternative energy and medical markets. Also, the microelectronics segment should soar amid advancing semiconductor technologies. While its earnings performance left much to be desired last year, in its fiscal Q4, the company posted EPS of 4 cents. That was twice the expected print of 2 cents.

For the current fiscal year, analysts are targeting EPS of 9 cents, 125% above last year’s print of 4 cents. Also, revenue could rise to $19.64 million, up 30.4%. Overall, Northland Securities pegs SOTK a “buy” with a $10 price target, implying over 127% growth potential over the next 12 months. It’s another solid idea for tech stocks if you’re the gambling type.

Duos Technologies (DUOT)

Working under the application software segment, Duos Technologies (NASDAQ:DUOT) presents a wild case for tech stocks. Per its corporate profile, Duos designs, develops, deploys and operates intelligent technology solutions in North America. Notably, the company offers myriad services, including an integrated platform to develop and deploy artificial-intelligence-based algorithms, which include machine learning and computer vision.

That’s the positive side to the narrative. However, despite gaining 19% on a year-to-date basis, DUOT is down almost 20% in the trailing 52 weeks. So, you’ve got to be careful with this opportunity. To cement this cautionary take, the average quarterly surprise last fiscal year was 47.53% below parity.

Still, analysts anticipate that in fiscal 2024, the loss per share will improve to 77 cents, better than last year’s loss of $1.56. More importantly, revenue could land at $17.7 million, nearly 137% above last year’s tally of $7.47 million. And fiscal 2025 sales could hit $30 million.

Finally, Northland Securities rates DUOT a “buy” with a $7 price target, projecting 118% growth potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.