3 Inexpensive Stocks That Could Deliver Jaw-Dropping Returns


  • These are high-quality stocks trading at a discount today.
  • Airbnb (ABNB): The upcoming summer travel season could boost Airbnb stock.
  • Apple (AAPL): Apple might be down but it’s not out, so this dip is a chance to load up on the stock.
  • Amazon (AMZN): Amazon is one of the best tech stocks to own this year.
inexpensive high-potential stocks - 3 Inexpensive Stocks That Could Deliver Jaw-Dropping Returns

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Everything looks expensive right now.

From groceries to travel and fuel, we’ve seen massive price hikes across all industries. And unless inflation cools, we must deal with it. However, investors can make the most of the impact of inflation on the stocks. Several stocks have seen a drop in value despite reporting impressive quarterly results.

So, could this be your chance to pounce? A few inexpensive high-potential stocks can deliver jaw-dropping returns, and they have already reported strong fundamentals. 

Each stock trades below $200 and present as a long-term buy and hold. As some of the best companies in their respective industries, these stocks have the strength to survive the market turmoil and rise higher. Let’s take a look at them. 

Airbnb (ABNB)

Airbnb (ABNB) logo on phone screen stock image.
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Beaten-down Airbnb (NASDAQ:ABNB) stock is trading at $143 today and has lost 8% value in the past month. The company has been under pressure after the first-quarter results since investors weren’t happy with the guidance.

Airbnb had the best Q1 ever with 133 million nights and experiences booked. It reported an 18% year-over-year (YOY) jump in revenue to hit $2.1 billion. The net income came in at $264 million, which is also its most profitable first quarter.

However, the market only paid attention to the guideline for the second quarter which shadowed the impressive numbers. The management is aiming for a 9% revenue growth in Q2 to hit $2.7 billion, lower than the growth achieved in the first quarter and below estimates. Since Airbnb operates an asset-light model, it has the potential to gain financial strength with each profitable quarter. 

I believe Airbnb is a solid long-term play and am impressed at the company’s bounce-back post pandemic. The summer travel could lead to better-than-expected results for the company.

ABNB gives strong competition to hotels and is using technology to enhance user experience. I think the market reaction is overdone, and the recent dip in the stock is a chance to accumulate. 

Apple (AAPL)

Apple (AAPL) logo brand and text sign on entrance facade store American multinational boutique corporation dealership shop. Apple Layoffs
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Apple (NASDAQ:AAPL) has had a poor start to 2024, and its price has only started to recover slowly. The company reported a drop in iPhone sales due to the economic downturn and also announced a massive buyback. Investors aren’t very convinced about the future of Apple. But I believe this is one company that can bounce back at any time. 

Up 3% year-to-date (YTD), AAPL exchanges hands for $192 and is moving closer to the 52-week high of $199. If you can keep the drop in iPhone sales aside, Apple looks like a highly lucrative business with a powerful brand name. Its service segment is thriving and has outperformed other segments. In the recent quarter, it reported a 14% YOY revenue jump. 

Moreover, Apple enjoys high brand loyalty and this has helped it expand across the world. Someone using an Apple product today might not easily switch to another brand. Yes, one cannot ignore the China problem, but I think Apple has the potential to handle this situation well. 

Also, it has enough resources to keep innovating and offering the most technologically advanced products to consumers. Apple has announced the largest share repurchase in history and this move has worked in its favor. Additionally, it declared a 25-cent dividend for shareholders. Looking at the company’s growth story, the stock looks inexpensive at the current level and is a buy-and-hold. 

Amazon (AMZN) 

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
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E-commerce giant Amazon (NASDAQ:AMZN) is exchanging hands for $183 today and is up 23% YTD. The stock has seen a steady rise over the past 12 months, and it is not long before it hits $200. 

The company reported a blowout quarter driven by the cloud segment and advertising revenue. With two of its fastest-growing segments, Amazon has become so much more than an e-commerce company. 

It saw a 13% jump in sales to $143.3 billion. The cloud segment, Amazon Web Services (AWS) showed a 17% YOY revenue growth while the advertising segment was up 24% YOY. Notably, the net income reached $10.4 billion as compared to the net income of $3.2 billion in the same period the prior year. 

Further, Amazon has a highly diversified business with multiple revenue sources which will continue driving growth. It started investing in artificial intelligence (AI) well in time to gain a higher market share with AWS. Thus, its investments have started to pay off. Finally, it also has enough cash flow to keep investing in the business. 

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-inexpensive-stocks-that-could-deliver-jaw-dropping-returns/.

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