SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Most Undervalued Stocks to Buy in February 2024


  • Strong economic indicators and robust job creation signal a positive future for the U.S. government
  • Snowflake Inc (SNOW): SNOW’s ability to provide the data necessary for AI means it hasn’t reached its potential yet
  • Harley-Davidson Inc. (HOG): A collaboration with an EV motorcycle company shows a promising outlook for revenue.
  • Advanced Micro Devices (AMD): AMD is a semiconductor company that is beginning to catch up with its peers.
most undervalued stocks - The 3 Most Undervalued Stocks to Buy in February 2024

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The positive future of the U.S. economy is getting support from the robust economic performance entering 2024. The government issued back-to-back reports indicating strong growth and a return of inflation toward the U.S. Federal Reserve’s target. The stock market hitting a record and the creation of 353,000 jobs in January contributed to consumer optimism. The Federal Reserve’s cautious approach to interest rates reflects confidence in solid economic growth. And, a strong labor market paired with a downward trend in inflation provide a foundation for a positive economic trajectory. Invest in these undervalued stocks to make the most of the the continued economic recovery.

Snowflake (SNOW)

The Snowflake logo on a company office in Silicon Valley, California. (SNOW IPO)
Source: Sundry Photography / Shutterstock.com

Snowflake (NYSE:SNOW) provides analytics services and cloud-based data storage services. SNOW’s financials are indicative of a company thriving in almost every metric. The company’s gross profit margin reached 67.09%. Revenue growth was also sizable, reaching 40.87% or in other words, 602.80% more than the sector median of 5.82%. These metrics distinguish SNOW’s financials as growing at an immense rate while remaining extremely valuable. 

The artificial intelligence market is growing at a monumental scale. It boasts a projected CAGR of 15.83% which, if true, will result in a market volume of $738.8 billion by 2030. SNOW is a leader in AI, and thus is set for a big payday as the market continues expanding. Overall, as AI continues its upward trajectory, Snowflake’s stock will follow. This makes it a must buy for anyone looking to hit a home run among the most undervalued stocks.

Harley-Davidson (HOG)

A close-up photograph of the tank to a Harley-Davidson motorcycle with raindrops on it.
Source: Alex Erofeenkov / Shutterstock.com

Harley-Davidson (NYSE:HOG) is an American motorcycle designer and manufacturer. Predictions show the motorcycle market growing from $75.63 billion in 2022, to $233.5 billion in 2031. Globally, this represents an exptected 8.6% CAGR for the period. With HOG’s extremely strong market share of over 20% in the United States, the company should reap the rewards of the expanding sector.

Financially, Harley-Davidson did not have the largest performance in Q3 ‘23. Bringing in $1.55 billion in the quarter, HOG reported a marginal YOY decline of 6%. Largely, the loss of financial performance was attributed to its discontinuation of the legacy Sportster model. They are bringing it back this year, and as the new models get rolled out, I expect revenue to bounce back.

In 2024, HOG aims to rebound from a poor 2023 performance by collaborating with and owning the electric vehicle motorcycle company LiveWire (NYSE:LVWR). High expectations are placed on both companies in 2024 to continue their EV presence. With Harley-Davidson’s established market presence, anticipate the collaboration to thrive.

Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.
Source: JHVEPhoto / Shutterstock.com

Advanced Micro Devices (NASDAQ:AMD), is a semiconductor company specializing in the development of computer processing devices. Over the past year, AMD’s stock has experienced a notable increase of 95.41%. Despite this massive increase, analysts still recommend AMD as a “Buy.”

In terms of financial performance, AMD exhibits robust growth compared to its sector, with a sales increase of 43.61%. The company demonstrates operational efficiency, as evidenced by a modest 1.25% increase in net operating costs and a free cash flow of $3.12 billion.

In summary, AMD stands out as an attractive investment opportunity due to its strong growth potential. Investors seeking the most undervalued stocks may find AMD to be a compelling choice.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/the-3-most-undervalued-stocks-to-buy-in-february-2024/.

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