7 Bargain Growth Stocks Trading at a Tempting Discount

Stocks to buy

From time to time, the stock market allows investors to grab stocks at a discount. While it is not a situation investors like to see themselves in, it is a chance to load up on growth stocks that look like strong long-term players. The recent earnings season is one such opportunity that led to a pullback in several stocks. Smart investors know now is the best time to load up on these bargain growth stocks. Let’s take a look at them.

Bargain Growth Stocks to Buy: PepsiCo (PEP)

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A rare revenue miss and a drop in volume in North America disappointed investors expecting PepsiCo (NASDAQ:PEP) to maintain its winning streak. However, this is temporary and was caused due to the price hikes. A one-time drop in volume speaks nothing about the company’s potential. Despite high-interest rates and inflation, the company has been performing well.

The recent results led to a drop in stock, exchanging hands for $165 today and is down 4% year to date. A dividend stock with a yield of 3.06%, PepsiCo has a long way to go, and the global giant is a mature company worth your money.

It managed to report an organic revenue growth of 9.5% in 2023 and offset rising costs. It still saw a 5% YOY revenue growth in the recent quarter. The stock isn’t cheap, but any discount means it is time to load up.

3M (MMM)

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Down 16% year to date, 3M (NYSE:MMM) is a well-acclaimed dividend stock. The maker of consumer goods, the company has carved a niche for itself and has a strong presence across multiple industries. It has suffered due to the lawsuits filed against it because of faulty earplugs.

However, the company can handle them and has been standing strong. It plans to sell off the healthcare unit this year, which could impact the stock. Trading at $92 right now, the stock enjoys a dividend yield of 6.56% and is significantly down from the highs of $218 in 2019.

While you might not get to see the stock pick up anytime soon, its dividend will generate passive income for you. The company has disappointed with forward guidance, leading to a dip in the stock. A dividend stock for less than $100 is attractive, and you might not get this opportunity again anytime soon.

NextEra Energy (NEE)

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The renewable energy sector was off to a good start, but the inflation and high-interest environment brought it to a standstill. NextEra Energy is an energy company that has a blend of both businesses-utilities and renewables. As the focus on renewable energies increases, NextEra Energy (NYSE:NEE) will be the first one to benefit.

The company enjoys a steady income through the utilities business while expanding the renewables segment. It is also one of the largest wind and solar power producers in the world. The company beat estimates in the recent quarter, and the bottom line came in at $1.21 billion. The management aims to achieve earnings growth in the range of 6% to 8% through 2026.

NEE stock is trading at $55 today and is down 10% year to date. It is also a solid dividend stock with a yield of 3.73%. NEE is an attractive growth stock with solid fundamentals.

Bargain Growth Stocks to Buy: Starbucks (SBUX)

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Global coffee giant Starbucks (NASDAQ:SBUX) has suffered over the past few weeks due to the drop in demand, the union campaign and the impression that the company is supporting violence in the Israel-Gaza war. However, Starbucks has stated that it is a misrepresentation.

The company also saw a drop in sales in China in the recent quarter, and investors weren’t happy with it. That led to a dip in SBUX stock, now trading for $94, down 6% in the past year and lower than the all-time high of $125.

The company has a global presence, and I believe this dip is temporary. It is on an expansion spree and has a strong balance sheet. Starbucks is also a dividend stock with a yield of 2.40%. The company is working with the union workers to agree on a path, and the drop in China sales could be an impact of inflation. For the long-term, Starbucks looks like a good bet.

Wendy’s (WEN)

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Trading at $18 and down 6% year to date, Wendy’s (NASDAQ:WEN) is a very strong value stock. The fast food chain has company-operated restaurants and franchises, and it manages them efficiently. It operates in over 30 countries and has more than 7,000 restaurants.

In the fourth quarter, the company reported a revenue of $540 million, and EPS came in at 21 cents. It has a very successful franchise business, which helps keep costs down while generating steady revenue. Wendy’s has integrated artificial intelligence (AI) into the business and will soon have a robot to help with food delivery.

The company enjoys a strong cash flow position and is a strong dividend stock. It enjoys a yield of 5.52%, making it one of the best passive income stocks. Restaurant stocks have done well despite inflation, and as the economy improves, we could see higher consumer spending, which will benefit the company.

Intel (INTC)

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Tech company Intel (NASDAQ:INTC) is working on implementing AI into all of its products. While that means a huge investment, the company is ready to do so. After reporting disappointing results, the stock dropped 10% year to date and is exchanging hands for $43 today.

While the company has a rich history and has been around for many years, it is trying to catch up in the AI race. However, I am certain the firm will gain some ground in the competitive industry. The company’s Gaudi3 AI chip grabbed attention, and it is competing with some of the biggest industry names.

The backlog of these chips already exceeded $2 billion in January. It could also partner with other tech companies to manufacture its chips. The demand for the chips is strong, and Intel will benefit from it. I think Intel is a compelling AI stock trading at a discount today.

First Solar (FSLR)

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One of the top bargain growth stocks, First Solar (NASDAQ:FSLR) is leading the renewable energy revolution and has impressed investors with its strong financials. As the largest solar panel producer, the company saw a net income of $349 million, up from a loss in the prior year and has a booking backlog of 81.8 gigawatts (GW) through 2030.

The strong backlog shows the company is sustainable and will manage to generate recurring revenue. It generated $1.2 billion in revenue in the recent quarter, beating estimates, and is aiming for revenue in the range of $4.4 billion and $4.6 billion for 2024.

Trading at $153 today, the stock is down 10% year to date, and this pullback is a chance to load up on it. Analysts have upgraded their price target for the stock after the impressive results. As the government continues investing in renewable energy, we will see First Solar emerge as a strong player.

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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