Investors inclined towards growth and possessing a penchant for patience are often attracted to undervalued stocks listed on NASDAQ.
Despite their current discounted prices, these stocks present the enticing possibility of future growth, potentially leading to substantial returns upon resale.
Each of these stocks possesses its own distinct characteristics, yet they share a common trait: surprisingly low prices.
After scrutinizing their performance following numerous Q4 reports last month, we delved into their growth potential and anticipated returns for the year ahead.
We will explore the intrinsic value of these stocks by examining established growth metrics, forthcoming investments, and refined strategies that could render their current prices appear too good to pass up.
Beginning the year with robust momentum, Airbnb (NASDAQ: ABNB) has capitalized on a 12% year-over-year surge in nights and experiences booked, coupled with a 17% YOY revenue increase.
Despite its global brand recognition and resilience in the face of industry challenges, Airbnb's stock is currently trading at $166.22, continuing a consistent upward trajectory since November.
To combat this undervaluation, Airbnb unveiled a $6 billion stock buyback plan last month, aiming to bolster its financial position.
This move not only elevates shareholder value but also facilitates reinvestment in expansion initiatives, including new property types and broader geographical coverage, positioning Airbnb as an appealing long-term investment prospect.
United Therapeutics (NASDAQ: UTHR) emerges as an underappreciated gem in the biotech sector, with a P/E ratio of 12.48 at the end of last year and an anticipated annual EPS estimate of $23.30, up from $19.81 previously.
With a remarkable 34% increase in net income over the past five years, United Therapeutics is strategically advancing its portfolio, evidenced by its recent merger with Miromatrix Medical.
This union sets the stage for groundbreaking innovations such as the mirokidney, a fully implantable manufactured kidney, slated for completion by December 2025.
With its solid footing in the biotech landscape, United Therapeutics presents investors with an enticing opportunity for substantial growth and profitability in the foreseeable future.
Meanwhile, PayPal (NASDAQ: PYPL) stands as a frontrunner in fintech, offering an array of widely used services and products.
Despite its market prominence, PayPal's current valuation sits at over 80% below its peak price. Surprisingly, this dip in valuation does not reflect poorly on its Q4 performance, which showcased a robust 9% year-over-year revenue growth and a non-GAAP EPS of $1.48, marking a 19% YOY increase.
PayPal remains resilient, focusing on expanding platforms like Venmo and nurturing partnerships with industry giants like Uber. With a diversified investment strategy, PayPal aims to regain stability and replicate its stellar Q4 results.
This presents astute investors with an opportune moment to capitalize on the current price dip and observe PayPal's ascent once more.
Disclaimer: The author, Joel Lim, does not hold any positions (directly or indirectly) in the securities mentioned in this article.
The opinions expressed are solely those of the author, adhering to InvestorPlace.com Publishing Guidelines. Joel Lim is a finance freelance writer contributing to various companies and financial publications.