Three undervalued stocks that have a chance to shoot up soon
We have recently seen a decline in the share price, but it might not last long. Are you looking for new investment opportunities that could start delivering profits faster than you expect? Finding good investments can be particularly challenging at the moment. Stock market developments are unpredictable, and economic indicators such as rising unemployment or the recent end of the yield curve inversion are giving us signals to be cautious.
However, according to some analysts, there are stocks that could see significant growth before the end of the year. Indeed, these companies have experienced undeservedly large share price declines in recent months, which now makes them an attractive investment opportunity. Here are three examples.
BigBear.ai $BBAI+1.3% (-46.18% over the past 6 months)
We are in the era of artificial intelligence (AI), where AI is changing the world from self-driving cars to infrastructure optimization. Increasingly, businesses are using AI to make their employees more productive. But the key question is how to efficiently process the vast amounts of data that companies are producing?
BigBear.ai offers a solution to this problem through its "higher form of decision intelligence". From supply chain management to digital identity, their software helps businesses, in short, make better decisions. For example, London Heathrow Airport is working with them on a project to improve operational efficiency and safety.
Despite promising projects, BigBear.ai's revenue growth has not been steady and the company is not yet showing profits, which is common for relatively new and smaller companies. However, this has led to a 90% drop in their share price since the peak in 2022. However, analyst experts expect their stock could nearly double within a year, creating the potential for rapid growth.
Chipotle Mexican Grill $CMG+1.8% (down -18% from ATH)
Chipotle Mexican Grill recently lost its longtime CEO Brian Niccol to Starbucks. This news has shaken Chipotle's stock price, which is now still at a lower level.
Niccol was instrumental in the company's resurgence after a series of food scandals where customers suffered from food poisoning at their restaurants. He introduced new rewards programs, innovated the menu, and significantly digitized operations, which led to an increase in sales.
Although Niccol's work has had a positive impact on the company, he is not as crucial to Chipotle as, say, Steve Jobs was to Apple. The company will continue to grow without him because of the improvements he left behind. The fact that the stock price has fallen may present an opportunity for investors looking for a good time to buy.
ASML Holding $ASML+5.1% (down -20% from ATH)
ASML
ASMLASML Holding, a manufacturer of computer chip manufacturing equipment, is a lesser-known name. However, their equipment is used by major chip makers like Intel and Qualcomm to produce the most powerful chips on the market.
ASML specializes in EUV lithography technology, which is not only fast and cost-effective, but also the most suitable for manufacturing next-generation chips. Their devices are priced at up to $370 million apiece, which may slow sales in times of lower demand.
However, ASML has a strong market position that is difficult for competitors to emulate, and they have been able to grow over the long term. Despite the current macroeconomic challenges, analysts expect their revenue growth to surge 33% next year thanks to a growing market for chips capable of supporting artificial intelligence.
Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.
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