As the final quarter of 2024 gets underway, savvy investors are already looking ahead to the opportunities that 2025 will bring. However, with three months still to go, there’s no need to rush into new investments just yet. Instead, focus on snapping up shares of undervalued stocks that are poised for growth. If you’re looking to make some strategic purchases this October, consider adding these three stellar stocks to your portfolio.
First up is Taiwan Semiconductor Manufacturing (NYSE: TSM), a global powerhouse in the chip manufacturing space. As a key supplier to major tech players, TSMC is driving innovation in artificial intelligence and other cutting-edge technologies. With a robust pipeline of new designs and a neutral market position, the company is well-placed to capitalize on the growing demand for powerful digital devices. Management expects revenue to grow at a compound annual rate of 15-20% over the next few years, making TSMC a compelling buy at its current valuation of 28 times forward earnings.
Next is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google and a dominant force in the digital advertising space. With ad revenue accounting for three-quarters of its total revenue, Alphabet’s ability to generate cash is unparalleled. The company’s AI research efforts have yielded impressive results, including the development of the Gemini generative AI model. Meanwhile, its cloud computing business, Google Cloud, is thriving as companies seek cost-effective ways to train their AI models. Trading at just 21 times forward earnings, Alphabet offers exceptional value for investors.
Last but not least is PayPal Holdings (NASDAQ: PYPL), a turnaround story waiting to happen. Despite a dismal performance since 2022, the company has made significant strides in recent months, with revenue growth of 8% and payment volume increasing by 11% to $417 billion in Q2. Under the guidance of its new CEO, PayPal is focused on cost savings and has already seen EPS rise by 17% in Q2. With management repurchasing shares and boosting fiscal-year 2024 guidance, PayPal’s stock is poised for a major rebound. At its current valuation, it’s an attractive buy for investors seeking a bargain.
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