Hidden Stocks, Huge Gains: 7 Picks the Market Mispriced for Triple-Digit Returns


  • Quantum Computing (QUBT): Focused on quantum computing solutions with progress in product development.
  • Airbus (EADSY): Developing the CityAirbus project for urban air mobility with strong financial performance.
  • Lockheed Martin (LMT): Stable government contracts and undervalued with a low P/E ratio.
  • Keep reading for more undervalued stocks to buy ideas!
undervalued stocks to buy - Hidden Stocks, Huge Gains: 7 Picks the Market Mispriced for Triple-Digit Returns

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For long-term investors seeking to capitalize on undervalued opportunities, there are several undervalued stocks that present attractive valuations relative to their intrinsic worth. These companies offer a unique combination of discounted prices and strong growth potential.

As we look to the future, these companies are well-positioned for substantial growth, underpinned by favorable industry tailwinds and strategic expansions.

Investing in the stocks outlined in this article could potentially lead to market-beating returns in the foreseeable future. While some of these stocks may be less risky than others, focusing on an income strategy, they all have the potential to add stability and impressive gains to one’s portfolio.

So with that being said, here are seven undervalued stocks that investors should consider adding to their portfolios. I think that these names represent the best value for money in the market right now.

Quantum Computing (QUBT)

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Quantum Computing (NASDAQ:QUBT) focuses on quantum computing solutions. Despite recent financial misses, it’s poised for significant long-term growth.

In Q1 2024, Quantum Computing reported a revenue of $0.08 million and an earnings per share (EPS) of -$0.09, missing analyst expectations. However, the company remains committed to developing its quantum computing technologies.

Quantum Computing has made progress in product development, including the release of five new products since acquiring QPhoton. The company is also expanding its manufacturing capacity and building a quantum chip facility to support future product design and development. This includes the production of various lithium niobate chips, such as physical unclonable function (PUF) and electro-optic modulator (EOM) chips, expected to launch in 2024.

Financially, Quantum Computing is exploring non-dilutive funding options to support its growth and maintain shareholder value. The company’s balance sheet remains stable with $71.4 million in cash, providing a solid foundation.

Airbus (EADSY)

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Airbus (OTCMKTS:EADSY) is actively developing the CityAirbus project, aiming to introduce a fleet of electric flying taxis for urban transportation. 

The CityAirbus NextGen is a fully electric, four-seat vertical take-off and landing (eVTOL) aircraft designed for urban air mobility. It features fixed wings, a V-shaped tail, and eight electrically powered propellers. The CityAirbus NextGen project has made significant strides, with the prototype set for its maiden flight later in 2024. Airbus has leveraged years of research and development, incorporating insights from its previous demonstrators.

EADSY is one of the two major airliners in the world, so I think that it could have an entrenched advantage in terms of its competitive positioning for flying cars.

Financially, Airbus reported strong performance in the first quarter of 2024, with consolidated revenues increasing by 9% year-over-year to €12.8 billion, driven by higher commercial aircraft deliveries. 

Lockheed Martin (LMT)

A Lockheed Martin (LMT) C-130J Super Hercules of the United States Air Force performing at Aero India 2017.
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Lockheed Martin (NYSE:LMT) has stable government contracts and is undervalued with a low P/E ratio as one of the most important defense contractors in the world.

LMT has shown stable performance and provided a positive outlook for 2024. In the first quarter of 2024, LMT reported net sales of $17.2 billion, up from $15.1 billion in Q1 2023. Despite this increase in sales, net earnings decreased to $1.5 billion or $6.39 per share, compared to $1.7 billion or $6.61 per share in Q1 2023. LMT’s backlog remains strong at $159 billion, reflecting significant national security space awards. 

Looking forward to 2024, LMT reaffirms its financial guidance, projecting net sales between $68.5 billion and $70 billion and diluted earnings per share in the range of $25.65 to $26.35. The company expects free cash flow between $6 billion and $6.3 billion for the year​. It could then be seen as one of those undervalued picks that investors should pay attention to.

Altria Group (MO)

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Altria Group (NYSE:MO), known for its tobacco products, offers a high dividend yield and is diversifying into alternative products. Its undervaluation and stable cash flow make it an attractive option for value investors.

MO’s cigarette shipment volume dropped by 10% in Q1 2024, primarily due to industry decline rates and the rise of illicit e-vapor products. Marlboro’s retail share in the cigarette category remained stable at 42%.

For 2024, MO reaffirms its guidance, expecting full-year adjusted diluted EPS to be between $5.05 and $5.17, reflecting a growth rate of 2% to 4.5% from a base of $4.95 in 2023​.

MO’s top-line has been decreasing, but it still produces an absurd amount of free cash flow, much of which it distributes to investors as a dividend. It has plenty of runway left to successfully transition to the smokeless products segment.

Intel (INTC)

Intel (INTC) logo is seen outside of the Robert Noyce Building at Intel Corporation's headquarters in Santa Clara, California.
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Intel (NASDAQ:INTC) is investing heavily in semiconductor manufacturing and innovation. Despite recent challenges, its market position and ongoing investments in new technologies suggest that it is undervalued and poised for a strong recovery.

INTC reported first-quarter 2024 revenue of $12.8 billion, which is within its guidance range of $12.5-13.5 billion. However, this guidance was below analyst expectations of $14.2 billion. The company’s gross margin was 40.2% on a GAAP basis and 43.5% on a non-GAAP basis​.

For Q1 2024, INTC’s EPS was $0.13, also lower than the expected $0.33 per share. Despite these lower-than-expected figures, INTC remains focused on its long-term investments in semiconductor manufacturing.

INTC also plans to continue its IDM 2.0 strategy, focusing on expanding its foundry business and investing in new semiconductor fabrication facilities, including a new plant in Ireland with $2 billion in funding.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
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Lithium Americas (NYSE:LAC) is advancing its Thacker Pass project in Nevada, which holds the largest-known lithium reserve in the U.S. The company secured a $2.26 billion loan from the U.S. Department of Energy..

The project is expected to produce 40,000 tonnes per annum (tpa) of battery-quality lithium carbonate. The construction of Thacker Pass is projected to create approximately 1,800 direct jobs over the three-year build period​.

In Q1 2024, LAC reported an increase in total assets, largely due to the capitalization of Thacker Pass costs.

Analyst ratings for LAC are generally positive, with a consensus rating of “Moderate Buy” and an average price target suggesting significant potential upside.

At just $3.91 per share, LAc could be significantly undervalued relative to its long-term growth potential.

Iris Energy (IREN)

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Iris Energy (NASDAQ:IREN), based in Australia, focuses on renewable energy for Bitcoin (BTC-USD) mining.

The demand for companies like IREN, which provide sustainable power solutions for Bitcoin miners, is expected to rise. Bitcoin mining is highly energy-intensive, and regulatory scrutiny over its environmental impact is likely. IREN offers a competitive edge for Bitcoin miners by mitigating these risks with its renewable energy approach.

IREN’s growth outlook for 2024 is a key reason for its perceived undervaluation. The company plans to significantly expand its operations, aiming to increase its operating capacity from 5.6 EH/s to 20 EH/s by year-end. This growth will be supported by 9 EH/s of miner purchase options available for exercise in the second half of 2024.

Combined with its forward P/E ratio of 8 times earnings, IREN presents a compelling investment opportunity in the blockchain sector.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/hidden-stocks-huge-gains-7-picks-the-market-mispriced-for-triple-digit-returns/.

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