3 Stocks to Buy Low Today With High Hopes for Tomorrow

Capitalize on opportunities with three undervalued stocks with high hopes for tomorrow

undervalued stocks - 3 Stocks to Buy Low Today With High Hopes for Tomorrow

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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.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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NIO Stock Plunges 50%: Is It Time to Sell or Buy the Dip?

NIO stock - NIO Stock Plunges 50%: Is It Time to Sell or Buy the Dip?

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As the EV market is seeing significant downside currently, Nio stock (NYSE:NIO) is only one of the companies experiencing big-time downside. The fact is that NIO stock is down nearly 50% tells most investors what they need to know about this stock’s performance thus far. Increasingly tight competition in China combines with other sector-wide headwinds to provide big down-side potential for the company moving forward. So, most growth investors may have moved onto other names.

Of course, Nio’s monthly deliveries are stabilizing. This, it’s difficult to ascertain whether this Chinese EV maker could be on the brink of a comeback. The company did see Q1 deliveries come in below analyst forecasts, so this picture is also murky. But if the company can beat expectations moving forward, perhaps there’s a value argument to be made for this stock.

I’ve been on the fence when it comes to Nio stock in the past, but here’s why my view has shifted to a more bearish tone on the company of late.

Nio’s 900V Drive System

Let’s start with some positives, shall we?

On March 27, Nio stock announced the mass production of “Thunder,” its 900V electric drive system (EDS), coinciding with the production of its one-millionth EDS. The upcoming Nio ET9 will be the first to feature this Thunder EDS, which boasts lighter, more compact electric motors for improved energy consumption and cabin space.

Nio’s ET9 debuts with a groundbreaking 925V W-Pin synchronous permanent magnet electric motor, boasting a power density of 4.3 kW/kg. It also features an innovative 1200V silicon carbide power module and continuous wave winding technology, promising enhanced performance and longevity. The first mass-produced 900V Thunder EDS rolled out, heralding the arrival of the ET9 in the Chinese market by 2025.

Nio Way Ahead

Predicting long-term stock prices involves complex analysis of various factors like interest rates and management quality. Trend analysis can help by using historical performance to forecast future returns. For Nio, the past 5 years show an annualized return of -2.7%, suggesting a potential future value of $4.03.

Nio plans to introduce a new mass-market EV brand named “Le Dao” in May, targeting the family segment with affordable vehicles priced around $20,000. This move aims to rejuvenate vehicle sales amid challenges in sustaining growth momentum. 

If successful, the launch could spur growth when large-scale deliveries commence in late 2024, prompting investors to consider its impact on the stock’s potential.

The Problem with Nio

Recent developments have led to significant declines in Nio’s stock, notably its latest vehicle delivery figures. Although March saw an increase in deliveries to 11,866 vehicles, Q1 2024’s total of 30,053 fell short of expectations, with a 3% year-over-year decrease. Additionally, poor fiscal results persist, impacting Nio’s stock performance.

Despite a sequential increase in vehicle margins in the December quarter, net losses surged by 36.8% to $756 million. Nio’s annual revenue growth remained in single digits, accompanied by declining margins and nearly $3 billion in net losses. Persistent challenges continue to weigh on Nio’s performance over the past three years.

It May Be Best to Sell or Avoid NIO Stock

Many challenges affecting the company’s performance, and consequently, NIO stock remains a hold or a sell, in m books. China’s slow post-Covid recovery slowed EV demand growth, intensifying competition and pricing wars. 

Despite efforts like expanding battery swap stations, Nio faces hurdles in increasing sales and achieving profitability. The company’s costly infrastructure expansion and past station performance raise doubts about its effectiveness.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Russia’s Arctic LNG 2 suspends gas liquefaction amid sanctions, lack of tankers


Reuters exclusively reported that Novatek, Russia’s largest producer of liquefied natural gas (LNG), has suspended production at its Arctic LNG 2 project due to sanctions and a shortage of gas tankers.

Market Impact

The decision to suspend converting natural gas to LNG is a blow to Russia’s goal to capture a fifth of the global LNG market by 2030-2035. It is currently the world’s fourth-largest LNG producer with annual exports of 32.6 million metric tons. 

Article Tags

Topics of Interest: Energy

Type: Reuters Best

Sectors: Commodities & Energy

Regions: Europe

Countries: Russia

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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Marathon Partners pushes Dr. Martens for strategic review, possible sale 


Reuters exclusively reported that investment firm Marathon Partners Equity Management wants British boot maker Dr. Martens to hire bankers and begin an immediate strategic review that could lead to a sale of the company.

Market Impact

Marathon Partners argues Dr. Martens’ stalled earnings growth and sharp share price drop of 83% since its public listing in 2021 have decoupled its valuation from its intrinsic value. 

Article Tags

Topics of Interest: Deals

Type: Reuters Best

Sectors: Business & Finance

Regions: Europe

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional Story

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3 Growth Stocks to Buy Now for Explosive 10X Returns: April Edition

Growth Stocks to Buy Now - 3 Growth Stocks to Buy Now for Explosive 10X Returns: April Edition

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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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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Bank of Korea considering forward guidance overhaul 


Reuters exclusively reported that the Bank of Korea is considering overhauling how it provides guidance on the likely future path of interest rates by extending the timeframe and giving visual estimates in a bid to boost transparency. 

Market Impact

South Korean authorities have been trying to introduce reforms across financial markets as the export powerhouse attempts to improve governance, transparency and communication. 

Article Tags

Topics of Interest: Economy

Type: Reuters Best

Sectors: Economy & Policy

Regions: Asia

Countries: South Korea

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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Reddit Stock May Be More Than a Meme, But It’s Still Not a Buy.

Reddit (NYSE:RDDT) went public less than a month ago, but even in this short span of time, Reddit stock has become one of the most talked-about stocks out there. Based on traditional valuation metrics, RDDT is richly priced. Upon closer inspection, shares may not be too expensive, The company has multiple catalysts that may drive profitability.

However, that’s not to say that shares are likely to move higher from here. Much less, are worthy of a buy. For now, the stock may be able to hold steady at or near $46 per share, but a move to lower prices in the months ahead remains very likely.

Reddit Stock and its Post-IPO Surge

After decades of being privately held, Reddit became a publicly traded company for the first time on March 21, when it held an initial public offering at $34 per share. Right out of the gate, RDDT soared in price, closing 48% higher on its first day of trading.

Then, Reddit stock became the subject of “meme mania.” Between March 22 and March 26, the stock soared from just under $50 per share, to as much as $74.90 per share.

However, as quickly as it started, the “meme wave” came to an end. Shares experienced sharp declines during the last two trading days of March.

So far in April, Reddit has traded sideways. RDDT has found support at around $45 per share, and resistance at $50 per share. With the speculative frenzy waning, the speculators are leaving the scene.

Investors focused more on fundamentals are assessing the opportunities and risks at hand.

Again, RDDT is not as pricey as its current forward multiple of 384.5 may suggest. There are also several catalysts in play that could result in dramatically improved fiscal results. Unfortunately, not even this may save the day for shares.

More Than a Meme Stock

Reddit stock may be seen as a short-term meme play, considering its initial trading and the impact of Reddit’s platform on meme stocks in 2021. RDDT’s stock trading is not solely based on hope and hype.

For one, the price-to-earnings ratio is misleading. Forecasts call for Reddit’s annual earnings to increase from 12 cents to 63 cents per share between 2024 and 2025.

Also, as discussed in Barron’s last month, shortly after the IPO, Reddit has several growth catalysts on tap. Alongside catalysts that you may expect, like improved ad monetization, the company is also pursuing other revenue streams.

Namely, efforts to generate revenue from licensing its vast library of posts for AI large language model training purposes.

The company may also eventually launch an official marketplace feature, in order to monetize the commercial and peer-to-peer transactions conducted unofficially through the platform. Yet while RDDT may be more than just a meme stock, that doesn’t make it a buy.

Bottom Line: Stick to the Sidelines for Now

There are two reasons these potential catalysts will not drive a rebound. First, although the a catalysts may eventually boost Reddit’s profitability, at best this may only sustain RDDT’s current valuation.

In other words, today’s share price is fully reflective of the company’s long-term potential. Second, even if something like valuation concerns doesn’t knock RDDT lower from here, there is an event that is likely to do so.

More than 180 days after the IPO, the lockup provisions preventing both company insiders and large shareholders like Advance Publications and OpenAI co-founder Sam Altman from selling will expire. Insider selling could heavily pressure the stock later this year.

While you may want to take a second look if Reddit stock falls sharply from here, stick to the sidelines for now. Wait for the lockup expiration and/or for shares to fall to a discounted price.

On the date of publication, Thomas Niel did not hold (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.comPublishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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3 Tech Stocks to Turn $10,000 Into $1 Million: April 2024

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.


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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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