The 3 Most Undervalued Under $20 Stocks to Buy in July 2024             

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These under $20 stocks have been beat down and show signs for potential recovery.

Bumble (BMBL): Dating app company that is increasing its paid users.

Savers Value Village (SVV): Large thrift-retailer than is going its revenues faster than its industry.

Getty Images (GETY): Legacy visual content company partnering with NVIDIA in gen-AI.

Undervalued Stocks Under $20 - The 3 Most Undervalued Under $20 Stocks to Buy in July 2024             

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Let’s look at some of the most undervalued stocks investors can buy right now for under $20 per share.

Recently, despite the overall market rising substantially over the past several years, these names have fallen particularly hard. These firms all have several things in common, including having positive net income, market capitalizations above $1 billion and forward price-to-earnings ratios that are near or below average for their sectors.

They also look very favorable when considering their current price compared to the average analyst price target. Based on that metric, all these stocks have implied upside of between 50% and 100%.

I’ll provide a brief overview of the operations of each company. I’ll also go over important financial metrics and provide some information on what analysts expect going forward.

Bumble (BMBL)

The logo for Bumble (BMBL) is displayed on a smartphone screen.
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Bumble (NASDAQ:BMBL) operates five apps intended to help people build meaningful connections. This includes the well-known app Bumble, which is a dating app focused on providing a better user experience for women.

The company’s first online dating platform was Badoo, which launched in 2006. It’s a market leader in Europe and Latin America, with 1.2 million users.

Shares have fallen 36% so far in 2024, and now Bumble looks like one of the more undervalued stocks in the communication services sector that is also profitable.

Much of this drop has been due to fewer young people using dating apps. A 2023 survey of 1,000 college students found only 21% of them used dating apps. However, this hasn’t materialized with Bumble, which increased its number of paying users by 18% over the past year and its revenues by 10%.

Analysts are expecting similar revenue growth going forward, and the average price target implies an upside of 58% from the current share price of $9.34.

Savers Value Village (SVV)

Large supermarket in a shopping center abandoned and boarded up
Source: Carolyn Franks / Shutterstock.com

Savers Value Village (NYSE:SVV) is the largest operator of for-profit thrift stores in the United States and Canada, based on the number of stores.

The company sells various retail products, from clothing to used electronics and other miscellaneous items. The company gets merchandise donated to it directly from the public through drop-off locations at its stores or purchases it from its non-profit partners.

The firm has grown its revenues well above U.S. clothing stores overall, achieving a compound annual growth rate of 5.6% from 2019 to 2023.

Lowering inflation should help drive down costs for the firm, and potential interest rate cuts later in the year could boost demand.

Shares are down 33% year-to-date and 50% over the past 12 months. The average price target from analysts who have updated their forecasts since the last earnings release is $21. This implies an upside of 65% from the current price of $12.75.

Getty Images (GETY)

Image of Getty Image logo on gray background
Source: shutterstock.com/360b

Getty Images (NYSE:GETY) is a provider of visual content to large enterprises, small businesses and individual content creators. The firm uses its platforms Getty Images, iStock and Unsplash to deliver visual content through a la carte and subscription business models.

Shares are down 32% over the past 12 months. Fallout from the WGA Writers Strike affected the firm in 2023, reducing revenue they could generate by selling pictures of Hollywood stars who were unable to shoot TV and films.

This year, the stock is down due to a massive earnings miss caused by a much higher-than-expected tax bill. Analysts predict the firm’s taxes will revert to normal levels.

The company increased its active users by 79% last quarter and is continuing to grow its partnership with NVIDIA (NASDAQ: NVDA) to provide commercially safe gen-AI images. Analysts expect earnings-per-share to increase by 74% over the next year, with an average price target of $6.03 suggesting a 93% upside from the current $3.13 price.

On the date of publication, Leo Miller 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Leo Miller has been studying financial markets since his junior year of college. While he loves learning about investments to fuel his intellectual curiosity, he is particularly fond of helping others grow their understanding of complex financial topics. His areas of expertise include public equity and investment fund analysis. He has work experience investing in public and private markets, impact investments, and performing macroeconomic research.


Article printed from InvestorPlace Media, https://investorplace.com/2024/07/the-3-most-undervalued-under-20-stocks-to-buy-in-july-2024/.

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