7 Undervalued Stocks Ready to Skyrocket from Their Yearly Lows

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  • PayPal (PYPL): Records solid top-line growth with increased total payment volume (TPV).
  • Alibaba (BABA): Maintains its e-commerce market lead in China, focusing on strategic investments to grow users and enhance their experience.
  • Warner Bros. Discovery (WBD): The D2C segment holds nearly 100 million subscribers, focusing on streaming growth and content pipeline expansion.
  • Please read the article for more undervalued stocks ready to skyrocket from their yearly lows!
Undervalued Stocks Near Yearly Lows - 7 Undervalued Stocks Ready to Skyrocket from Their Yearly Lows

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Finding opportunities amid volatility is crucial for those pursuing growth and stability when uncertainty clouds the market. The first company, a fintech giant, leads with increasing revenue growth, transaction volume, and strategic international expansion. The second one is a formidable force in the e-commerce space, holding onto its market dominance in China.

Moreover, the fourth one shows off a solid order book and a dedication to quality in the face of difficulties, while the third one comes into the limelight with a growing Direct-to-Consumer (D2C) sector and strategic content pipeline growth. The sixth company’s global expansion and healthy comparable sales growth underline its resilience, while the fifth company’s steady revenue growth and strong loyalty program solidify its position. The seventh company’s innovative and widely used products in the semiconductor industry have increased revenue and market share, demonstrating its adaptability and strength. 

These cheap companies offer investors attractive chances because of their solid fundamentals, calculated moves, and potential for development in various industries. 

Undervalued Stocks Near Yearly Lows: PayPal (PYPL)

Closeup of the PayPal app icon seen on a Google Pixel smartphone. PayPal Holdings, Inc. (PYPL) is a global financial technology company operating an online payment system.
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PayPal (PYPL) reported 9% year-over-year (YOY) revenue growth in constant dollars or 10% of 7.7 billion for Q1 2024. Total payment volume hit $403.9 billion in the quarter, an increase of 14% in dollars, and payment transactions grew 11% to 6.5 billion.

Additionally, development outlooks, especially on the continents of Europe and Asia, show a 17% YOY growth in international TPV on a currency-neutral basis, also confirming PayPal’s strong global presence.

At the bottom line, non-GAAP EPS surged 27% from the past year to $1.08, while GAAP EPS was up 18% to 83 cents. In Q124, at a dearer valuation, PayPal repurchased nearly 25 million common shares for $1.5 billion. Thus, the significant rise of both GAAP and non-GAAP EPS attests to PayPal’s inherent ability to translate top-line expansion into a more resilient bottom line. It’s just a great way to create value for the shareholder.

Alibaba (BABA)

baba value stocks
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Taobao and Tmall Group (TTG) constitute Alibaba’s (NYSE:BABA) primary e-commerce business activities. This has seen consistent, massive growth. Despite the fierce competition in the industry, Alibaba continues to hold the top spot among Chinese consumers. Moreover, TTG has announced a robust gross merchandise volume (GMV) increase YOY. This is primarily due to successfully implementing competitive and user-focused pricing strategies. The volume of orders and the number of active purchasers have increased significantly. This demonstrates the platform’s continued popularity and customer confidence.

Additionally, the platform’s position in the market is further reflected in the size of its merchant base, which is growing at a double-digit rate. This development pattern demonstrates Alibaba’s capacity to draw in and keep merchants, which is essential for preserving a wide range of products. Alibaba understands that maintaining its competitive advantage requires investing in key competencies.

In short, to improve the shopping experience for customers, the company is prioritizing investments in important areas. These include product availability, competitive prices, and excellent service. 

Undervalued Stocks Near Yearly Lows: Warner Bros. Discovery (WBD)

The logo of the new Warner Bros Discovery (WBD) company on smartphone screen.
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As of Q4 2023, Warner Bros. Discovery’s (NASDAQ:WBD) D2C sector had expanded to have nearly 98 million members. International markets were fundamental to counterbalance local decreases in subscriber growth. Indeed, Warner Bros. Discovery profited from the expansion of streaming advertising despite difficulties in the markets for linear advertising. Revenues from D2C advertising surged by more than 50% in Q4 over Q3. Growth in ad-lite subscribers and great Max engagement both contributed to this acceleration. 

Moreover, Warner Bros. Discovery concentrated on improving revenue and segmentation by introducing new ad-supported products, among other measures. Worldwide expansion and strategic alliances, such as the introduction of Max in important markets like Europe and Latin America, also aided growth and revenue diversification.

Finally, the company focuses on restoring the popularity of beloved properties like Harry Potter, Game of Thrones, and Superman. It channels investments into new spin-offs, sequels, and collaborations with influential artists to capitalize on the intrinsic worth of these properties and promote long-term growth.

Boeing (BA)

BA stock: a blue and white Boeing 787 flying in the sky above the clouds
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Despite temporary difficulties, Boeing’s (NYSE:BA) backlog of over 5,600 commercial aircraft increased to $529 billion, suggesting a substantial market for its goods. Boeing’s goods are trusted by the firm, as seen by the 125 net orders it received in the first quarter, including large orders from important clients like American Airlines and Ethiopian Airlines. Thus, efficient backlog management provides stability and visibility of the top-line, laying the groundwork for future expansion and profitability.

Additionally, Boeing has demonstrated a focus on upholding the highest standards throughout its operations by taking a proactive approach to resolving quality and safety problems, especially in the wake of the Alaska Airlines tragedy. Overall, Boeing demonstrates its focus on ensuring the safety and reliability of its aircraft through actions that support investigations, enhance factory discipline, involve employees, and establish quality control procedures.

Undervalued Stocks Near Yearly Lows: McDonald’s (MCD)

McDonald's restaurant in Thailand.
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In constant currency, McDonald’s (NYSE:MCD) consolidated revenues climbed by more than 4%. McDonald’s sales rise shows that the company can make a sizable profit and develop internationally. McDonald’s has demonstrated successful implementation of its strategic growth strategy. This includes activities like menu innovation, marketing campaigns, and expansion efforts.

Further, for the last twelve-month period and the quarter, systemwide sales to loyalty members across 50 loyalty markets were close to $25 billion and over $6 billion, respectively. The substantial sales contribution made by McDonald’s loyalty members to the company’s overall sales shows how well the loyalty program works to increase consumer engagement and encourage repeat business. Hence, McDonald’s capacity to sustain customer loyalty, raise lifetime value, and promote sustainable top-line growth indicates high systemwide sales from devoted customers.

Finally, for the first quarter of 2024, McDonald’s recorded an adjusted operating margin of around 45%. Strong profitability is reflected in the 8% growth in consolidated operating income in constant currency. Even with obstacles like higher expenses, McDonald’s continued to have strong profit margins.

Lululemon (LULU)

Lululemon storefront in a mall. People shop inside the store among the clothes. LULU stock.
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With full net revenue rising 16% in Q4 2023 compared to Q4 2022 and the top-line improving by 19% 2023 over 2022, Lululemon (NASDAQ:LULU) has posted continued growth in consolidated revenues. Specifically, channels, stores, e-commerce, and geographies from the Americas to Mainland China and the rest of the world have balanced this growth well.

The company’s international segment performed robustly, registering a 58% increase in revenue on a constant currency basis for all of 2023 compared to 2022 while growing by 54% in Q4 2023 over Q4 2022. Hence, Lululemon has been performing relatively well in foreign countries.

In Q4 2023, comparable sales climbed by 12% over Q4 2022. Similarly, comparable sales in the Americas were up 7%, and overseas comparable sales rose 43% (or 44% on a constant currency basis). Further, there were gains of 8% in the Americas and 35% (39% on a constant dollar basis) in overseas markets. Therefore, this constant rise in comparative sales highlights the company’s strong brand loyalty and customer engagement efforts.

Intel (INTC)

Intel (INTC) - Quantum Computing Stocks to Buy

Concentrating on Intel’s (NASDAQ:INTC) top-line growth and market share expansion, revenue in Q1 2024 reached $12.7 billion, a 9% YOY increase. Additionally, Intel Products had a 17% YOY increase in revenue to $11.9 billion. The company anticipated more revenue in H2 2024. Moreover, growth in Intel’s revenue shows that it sharply hit market demand and increased its market share, especially in the client and data center areas. Thus, Intel’s stable top-line growth indicates the company’s lead in the semiconductor industry, reflecting Intel’s ability to adapt to changing client demands.

Similarly, looking at product adoption and innovation, since December 2023, more than 5 million AI PCs have been shipped. The Intel Gaudi 3 AI accelerator was introduced. In the future, Granite Rapids is scheduled for release in Q3. An announcement on the Open Platform for Enterprise AI has also been made. Hence, Intel demonstrates its dedication to innovation through the substantial quantity of AI PCs sold and the release of cutting-edge AI accelerators and platforms.

Overall, by meeting the increasing market need for AI-powered solutions, these products strengthen Intel’s position as a market leader and give it a competitive edge.

As of this writing, Yiannis Zourmpanos held long positions in PYPL, BABA, WBD and INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.


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