With the innovation space enjoying tremendous gains over the past year, the concept of targeting undervalued Nasdaq stocks seems to clash against reality. After all, the technology-centric index has been an outperformer relative to other benchmarks.
Nevertheless, a rising tide doesn’t always lift every single boat. With thousands of publicly traded opportunities available on the Nasdaq, it’s impossible for investors to assess them all. Therefore, it’s practically inevitable that at least a few ideas will fall outside the spotlight.
However, this dynamic simply provides an opportunity for bold contrarians. If that’s you, below are undervalued Nasdaq stocks to consider.
Photronics (PLAB)
While Photronics (NASDAQ:PLAB) might not immediately ping the radar as a must-have idea, that’s also what makes shares an intriguing candidate for undervalued Nasdaq stocks to buy. Per its public profile, the company engages in the manufacture and sale of photomask products and services in the U.S., Taiwan, China and many other markets. Photomasking is a vital process for transferring circuit patterns onto semiconductor wafers.
Presently, PLAB stock trades at a trailing-year earnings multiple of 12.38X. Also, it’s priced at 1.91X trailing-year revenue. Both stats are undervalued relative to the industry. That seems like an opportunity rather than a value trap because of the relevance. Sure, photomasking doesn’t grab headlines like graphics processors. However, without photomasking, many of the technologies we take for granted won’t nearly be as impressive.
Further, covering experts are looking at the company’s earnings per share hitting $2.15. That’s above last year’s print of $2.03. On the top line, they’re seeking revenue of $932.3 million or 4.5% above fiscal 2023’s result of 892.08 million. PLAB isn’t exciting but it’s critical, making it one of the undervalued Nasdaq stocks to buy.
Comcast (CMCSA)
A multivariate powerhouse, Comcast (NASDAQ:CMCSA) officially falls under the communication services industry. Specifically, it provides telecom services, though it’s so much more than that. Along with its core business, Comcast is an entertainment giant that competes with Disney (NYSE:DIS). Also, the company operates the Universal theme parts across the world.
With travel prioritization perhaps a permanent component of the post-pandemic ecosystem, CMCSA should be on your radar for undervalued Nasdaq stocks. And it’s exactly that, with shares trading at only 9.37X forward earnings. In contrast, the sector median is 13.91X.
For fiscal 2024, analysts are projecting EPS to hit $4.23, an improvement over last year’s result of $3.98. On the top line, they’re expecting sales of $124.2 billion, up 2.2% from last year’s print of $121.57 billion. While that’s not thrilling, the high-side target calls for $126.92 billion. That could be more in line with reality if the aforementioned travel prioritization trend pans out.
Lastly, experts peg CMCSA a moderate buy with a $51.21 average price target. That’s big upside for contrarians willing to risk it.
JD.com (JD)
If you really want to throw caution to the wind with undervalued Nasdaq stocks, JD.com (NASDAQ:JD) should be on your radar. Based in China, JD operates under the consumer cyclical sector, specifically Internet retail. According to its corporate profile, the company provides supply chain-based technologies and services, covering a range of product categories.
Right now, JD stock trades at a lowly forward earnings multiple of 8X. In contrast, the sector median value stands at 15.31X. Also, shares are priced at 0.26X trailing-year revenue, below the sector median 0.67X. Of course, the criticism is that China’s economy has been weak. Therefore, the investment could end up being a value trap.
Nevertheless, some recent data suggests the Asian juggernaut’s economy is improving. If so, now could be a shrewd time to buy. At the very least, JD could be one of the undervalued Nasdaq stocks to watch. What’s compelling is that analysts see EPS hitting $3.16 on revenue of $160.18 billion. That’s up from last year’s print of $3.06 EPS on sales of $149.86 billion.
On the date of publication, Josh Enomoto did not have (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.