7 Unappreciated Nasdaq Stocks Set for Explosive Growth in 2024


  • T-Mobile (TMUS): The largest U.S. carrier is poised to enjoy massive earnings growth in the years to come.
  • Booking Holdings (BKNG): The ongoing recovery in travel should boost the leading online travel agent.
  • PayPal (PYPL): The premiere payments processor still leads the way despite growing competition.
  • Read on to discover the four additional stocks ready to explode higher this year.
nasdaq stocks - 7 Unappreciated Nasdaq Stocks Set for Explosive Growth in 2024

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The Nasdaq 100 has been an emotional ride for investors. From a heart-stopping 34% plunge in 2022 to giddy elation at last year’s 54% surge, the tech-heavy index has been a non-stop, white-knuckle experience. Where it heads next is anyone’s guess.

Comprised of the 100 largest non-financial companies listed on the Nasdaq exchange, the index stands pretty much where it stood two years ago. The whipsaw effect sometimes means the market gets it wrong. The wisdom of crowds is not always correct. For savvy investors, they see opportunity.

By approaching investing with a long-term mindset, such volatility lets them scoop up beaten-down stocks at a great price. Even today, several stocks remain unappreciated by the masses. What follows are seven of the best Nasdaq stocks to buy ahead of them taking off this year.

Nasdaq Stocks: T-Mobile (TMUS)

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T-Mobile (NASDAQ:TMUS) is now the largest U.S. wireless carrier with 21.6 million prepaid users. It surpassed Verizon (NYSE:VZ) at 21.4 million to steal the crown. It also leads on the postpaid front with 96.3 million customers. T-Mobile has more people covered by its 5G network than any other carrier.

The ongoing 5G infrastructure rollout is arguably the biggest driver of future growth for T-Mobile. The upgrades promise to increase download speeds for the first time in nearly a decade. Faster speeds will lure more people to use their mobile devices more. Because carriers tend to make most of their earnings from data consumption, greater customer usage will expand profits further.

Wall Street expects T-Mobile to grow profits an incredible 68% annually for the next five years. Its stock is up only 9% over the past year and trades at just a fraction of that long-term earnings growth rate. It seems clear T-Mobile is poised for explosive growth ahead.

Costco (COST)

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Warehouse club leader Costco (NASDAQ:COST) is one of those stocks the market does seem to appreciate, but it still needs to be on your buy list. Although its shares are up 44% over the past year, they still have much to go.

Consumers are even more cautious about their spending habits than they were. That’s because inflation is rising again, the Federal Reserve won’t cut interest rates anytime soon, and student loan debt needs to be repaid. More Americans are living paycheck to paycheck and using credit cards to get by. They need to get more bang for their buck. That’s where Costco comes in. 

Consumers are resorting to only buying everyday essentials. Buying them in bulk drives down the unit cost of an item. That’s the warehouse club’s wheelhouse, and its customers flock to its stores. Traffic at the warehouses is growing, and comparable sales are soaring. Since Costco operates on high volume, low margin purchases, profits are also rising. 

Costco also has another lever at its disposal to pull: membership fees. It hasn’t raised them in several years, so it’s only a matter of time. And when it does, those fees flow right to the bottom line. With the opportunity to expand internationally, the market does not fully appreciate how much further Costco stock can grow.

Nasdaq Stocks: Constellation Energy (CEG)

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Utilities are unknown for meteoric outbreaks, but Constellation Energy (NASDAQ:CEG) investors could experience one this year. The energy sector was beaten down in 2023 because of high-interest rates, which raised borrowing costs. Because utilities are highly leveraged, they feel more impact than other industries.

Yet Constellation performed better than most last year. Shares of the U.S. electricity and natural gas services provider are up 34% over the last 12 months because it has a diversified portfolio of assets and businesses. Those include competitive energy supply, retail energy, power generation, and energy efficiency solutions. That gives it a competitive edge and resilience in a market that is still in flux.

Reliable cash flows and stable dividends make utilities like Constellation stand out as investments. While the payout yields a modest 1% annually, earnings cover it well. Its strong financial performance has analysts forecasting long-term earnings growth of 26% annually, which is remarkable for a company in this industry. The stock has much further to go.

Booking Holdings (BKNG)

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Leading online travel agency Booking Holdings (NASDAQ:BKNG) operates several popular brands, including its namesake Booking.com, Priceline, Kayak, and Agoda. It stands to benefit this year from the ongoing recovery of the global travel industry.

While growth is expected to normalize from the “revenge travel” boom of years past following the pandemic, significant growth is forecast. The International Air Transport Association says overall traveler numbers will reach 4 billion in 2024, exceeding pre-Covid levels. Passenger volume is also projected to surpass 2019’s results, with 9.4 billion passengers worldwide this year. The hospitality industry could see over 10% growth through 2030, depending on who’s counting. Although certain hotspots worldwide may displace travel to certain markets, they should be absorbed by other locales rather than evaporating.

Booking Holdings has a strong competitive advantage in the online travel market. It offers various travel products and services, such as accommodation, flights, car rentals, and experiences. That gives it a loyal customer base with a high retention rate. Booking also leverages its data and technology to provide users with personalized recommendations, discounts, and rewards. Gross bookings in Q3 rose 24% year-over-year to hit $40 billion.

Booking Holdings offers investors a robust financial performance and outlook, meaning 2024 could be an explosive year for it.

Nasdaq Stocks: Comcast (CMCSA)

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Although entertainment and telecom giant Comcast (NASDAQ:CMCSA) is up 13% over the past 12 months, it remains 14% below where it traded two years ago. Investors who’ve held on during that time could be ready to benefit from their patience. 

Comcast invested heavily in its broadband network, which by some rankings is the fastest and most reliable in the U.S. Boyar Value Group says Xfinity remains very profitable for the operator. Comcast also operates a portfolio of media and entertainment assets, including NBC, Telemundo, Universal Pictures, Universal Studios, and the Peacock streaming channel through its NBCUniversal division. 

The streaming service had 4 million net new additions in Q3 and ended the quarter with 28 million paid subscribers, 80% more than last year. Comcast also owns Sky, a leading pay-TV provider in Europe, though it has recently experienced subscriber losses. Boyar analysts say NBCUniversal has the best balance sheet among old-line media companies. It can produce strong cash flows that support its dividend, which yields 2.7% annually. Comcast also engages in share buybacks to return value to investors. 

Theme parks are one of Comcast’s bright spots, with adjusted EBITDA increasing 20% last quarter to nearly $1 billion, its highest adjusted EBITDA on record. Boyar forecasts a 63% upside in the stock this year. Thus, I think it is one of the best Nasdaq stocks you can buy.

Starbucks (SBUX)

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Shares of coffee shop operator Starbucks (NASDAQ:SBUX) are down 13% over the past year, some 20% below their 52-week high and off 27% from their all-time high in 2021. This is from a company that is growing sales at 12% a year and profits 20% annually.

Starbucks is not a tiny, still wet-behind-the-ears company like Dutch Bros (NYSE:BROS) but a mature, well-established business with 33,000 locations globally. Weekly U.S. store sales grew 50% over the past four years, and it sold $6 billion worth of food in North America last year.

Over 75 million loyalty club members are active over a 90-day period, and it plans to double that number in the next five years. So, although coffee is mature and Starbucks is one of the industry’s gray hairs, it acts like a spry, young whippersnapper. It has plenty of expansion opportunities, too, particularly abroad. There are about 20,000 stores outside of the U.S., and it is targeting 10% annual growth in new openings. China has long been an area for targeted expansion, but India is now coming into focus. Starbucks plans to open about two stores a week to have 1,000 locations operating by 2028. 

The market is unfairly beating down Starbucks stock and should realize its mistake soon. That should result in explosive growth this year and beyond.

PayPal (PYPL)

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Payments leader PayPal (NASDAQ:PYPL) is another stock down sharply. Shares are off 31% from last year’s high and a whopping 80% below the all-time high hit two years ago. As competition in the payments space intensified, PayPal’s stock retreated, but the selloff was unwarranted.

PayPal’s platform is still the most popular digital wallet, well ahead of Apple Pay, Cash App, Venmo, Zelle, and Google Pay. The total payment volume was $1.5 trillion over the past year. But growth is slowing. PayPal is down to 428 million active accounts from 435 million at the end of 2022. Despite the decline, payment transactions per active account are rising. It reported 56.6 million transactions in Q3 compared to 50.1 million transactions a year ago.

PayPal’s stock is also cheap. It trades at 11 times estimated earnings, with Wall Street calling for 18% long-term earning growth. With a new management team, look for the fintech stock to reclaim its position atop the field. It is one of the best Nasdaq stocks to buy, at least in my book.

On the date of publication, Rich Duprey 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.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

Article printed from InvestorPlace Media, https://investorplace.com/2024/01/7-unappreciated-nasdaq-stocks-set-for-explosive-growth-in-2024/.

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