The markets underappreciate the significant earnings acceleration these undervalued growth stocks will achieve.
As this bull market heats up, frothy valuations are beginning to show up. Some companies are garnering unwarranted attention by just mentioning AI in their earnings call. Avoid getting caught up in the hype by considering undervalued growth stocks showing impressive results today.
Identifying undervalued growth stocks means searching for companies with strong potential for future growth that are currently priced affordably. Historical growth and the total addressable market are good indicators of growth possibilities. Moreover, these picks must be profitable and trade at reasonable forward price-to-earnings ratios.
The following companies are showing robust growth, achieving over 15% quarter-over-quarter sales growth in their most recent earnings. What’s more, their end markets are in healthy shape and have shown growing demand.
With strong growth prospects and cheap multiples, these are top picks as undervalued growth stocks. According to Finviz data, the following three stocks are projected to grow EPS by 30% annually over the next five years. Let’s explore why these companies could be considered solid picks for investors seeking growth at a reasonable price.
Vertiv Holdings (VRT)
Vertiv Holdings (NYSE:VRT) specializes in designing, manufacturing, and servicing critical digital infrastructure technologies, communication networks, and commercial and industrial environments. Particularly, the company has attractive growth prospects in its life cycle services and cooling systems for data centers.
Given the exponential growth in data consumption, the Internet of Things (IoT) and cloud computing, the demand for dependable and efficient data center infrastructure is soaring. Admittedly, AI data centers are more…
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