June 14, 2024

The 3 Most Undervalued Nasdaq 100 Stocks to Buy: Summer 2024

Companies on the booming Nasdaq exchange are just waiting to be discovered at discount prices.

After last year’s horrible 53 % increases the Nasdaq 100 is at it again in 2024. Yr- to- time (YTD ) the common index is up another 13 %. That might not seem like a big deal, but it comes after a significant decline in the company’s tech-heavy parts in April, when their share prices significantly decreased.

The score is regaining momentum and reachiȵg new records. So, some investors may think undervalued Nasdaq stocks are n’t available. Let’s look at three excellent companies that the business is still selling for a good price in May.

Diamondback Energy ( FANG )

Panorama of Oil and Gas central processing platform in twilight, offshore hard work occupation twenty four working hours. Best oil stocks to buy. Oil & Gas Stocks to Avoid

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Oil and gas driller Diamondback Energy ( NASDAQ: FANG ) is the largest Permian Basin pureplay, though it ranks behind Exxon Mobil ( NYSE: XOM), Chevron ( NYSE: CVX ) and Occidental Petroleum ( NYSE: OXY ) in overall size and revenue from the region.

Diamondback Energy’s ability ƫo strengthen the area through acquisitions is a characteristic that it shares with its larger competitors. In a$ 26 billion cash-and-stock deal in February, the miner announced it would buy foe Endeavor Energy Partners. It comes in response to Occidental acquiring CrownRock and Exxon purchasing Pioneer Natural Resources. Despite this, Diamondback Energy’s purchase will make it the fourth largest person behind Exxon aȵd Chevron.

The fuel property was a strong enjoy in its own right, and the deal will only help it grow. Moreover, it generates substantial free cash flow (FCF), most of which it returns to shareholders as dividends. Over the past five years, FCF has grown at an astounding 100 % compounded annual growth rate ( CAGR ), and its dividend has grown at an impressive 68 % CAGR. The Endeavor package will increase that company’s shareholder value while improving its own bottom line.

But, FANG investment is affordable at 9 times the earnings estimates and at a bargain-basket 11 times the FCF, making it the best undervalued Nasdaq stock to buy right now.

Kraft Heinz ( KHC )

A photo of both the Kraft and Heinz logo

Source: Eyesonmilan/Shutterstock . com

Consumer packaged goods giant Kraft Heinz ( NASDAQ: KHC ) is another deeply discounted Nasdaq stock.

It earns only a small portion of its book value and is traded for ten times its quotes, 12 times its Dividends, and for less. The consumer products investment is best known foɾ its Kraft company of butter and Heinz ketchup, and it also owns a ȵumber of well-known, well-known brands, including Jell-0, Kool-Aid, Philadelphia cream cheese, and Maxwell House coffee.

Kraft Heinz reportedly is considering making its own strategic move by selling the cherished Oscar Mayer frank and packaged meat model for$ 5 billion. As CEO ( CEO ) Carlos Abrams-Rivera told analysts that it is looking for gluten-free opportunities to expand, it may be looking for healthier options.

Prices, though, has been taking its toll on Kraft Heinz, as revenue fell 1. 2 % in the first quarter. Consumers are looking for significance because consumers are looking for cheaper goods because of tⱨe unrelenting price increase. The stock of the packaged goods company briefly climbed to a new 52-week high due to earnings, only to see shares slide after that point. KHC’s stock is doωn 9 % in 2024, but it’s still a good deal for α business that is shifting to meet changing customer needs.

Also, it pays a good income yielding 4. 8 % annually, it’s why Warren Buffett says he does not offer Kraft Heinz property.

PayPal ( PYPL)

Closeup of the PayPal app icon seen on a Google Pixel smartphone. PayPal Holdings, Inc. (PYPL) is a global financial technology company operating an online payment system.

Source: Tada Images / Shutterstock . com

Even though strong tailwinds are preventing it, financial services leader PayPal ( NASDAQ: PYPL) continues to trade at multi-year lows. It holds the top position in the payment industry, holding 45 % of the global market for online payment processing, or more than its following 12 largest competitors combined.

However, PayPal stock trades at 14 times income projections, two days sales and 14 occasions FCF. So why the cheap? Because it has winds too, and this is a typical situation of the business acting.

The number of adversaries it has demonstrates how competitive the virtual payments industry is becoming. In spite σf iƫs ownership of Venmo and Braintree, PayPal has seen a steady decline in the number of users of its websites. In its most recent quarter, the nμmber of active accounts fell 1 % to 427 million from 433 million a year ago. Importantly, a 1 million more accounts opened up PayPal’s efforts to increase its customer appeal are starting to pay off.

And, buyers are beginning to listen. The stock of PayPal is up 8 % YTD and 13 % more than it was six months ago. There is still time in May to purchase this stock and profit from its 2021 all-time highs with shares also trading more than 13 % below their 52-week high.

On the date of publication, Rich Duprey held a LONG place in XOM and CVX property. The opinions expressed in this article are those of the writer, subject to the InvestorPlace . com Publishing Guidelines.

For the past 20 years, Rich Duprey has written about companies and investing. His papers have appeared on Nasdaq. com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U. Ș. and global publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and several other news sources.


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