Nasdaq stocks are effectively navigating a rollercoaster market with resilience.
Despite a recent flurry of challenges for the tech space, Nasdaq stocks have outperformed the S&P 500 in the past two months. A lot of its recovery is linked to the strong recoveries in the Magnificent Seven (Mag 7) stocks. Though these stocks took a hammering in recent weeks, they have bounced back emphatically.
To put things in perspective, The Nasdaq Index comprises more than 3,000 diverse stocks ranging from heavyweight tech firms to emerging biotech firms. The index’s recent performance points to the resilience of the best Nasdaq stocks to buy, suggesting there are attractive opportunities for investors to bet on despite the testing times. This blend of challenge and triumph points to a relatively positive outlook for investors ahead of interest rate cuts.
That said, here are three of the best Nasdaq stocks to bet on now trading at more attractive levels while offering superior upside ahead.
Nasdaq Stocks to Buy: Meta Platforms (META)
Under the dynamic leadership of its CEO Mark Zuckerberg, Meta Platforms (NASDAQ:META) made some major strides during its “year of efficiency” in 2023. Through strategic belt-tightening measures, investments in AI and a pullback in its moonshot endeavors, Meta pulled off a remarkable turnaround.
Consequently, in the past six quarters, the firm has posted comfortable top-and-bottom-line beats, with a superb increase in its profitability. In its most recent showing in the second quarter (Q2), it posted a stellar 22% year-over-year (YOY) revenue increase to $39.07 billion and an even more impressive 73% surge in net income. Moreover, with its daily active users reaching 3.27 billion, a 7% increase from the previous year, its robust advertising engine continues firing.
Furthermore, Meta’s operational efficiency didn’t just boost the bottom line, it also led to the initiation of quarterly dividends and aggressive stock buybacks, which added to its already illustrious bull case.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) offers a compelling bull case, underscored by impressive financial metrics and robust strategic market positioning. Though the stock has been relatively laggard compared to its Mag 7 peers, it has been picking up the pace lately, gaining 13% in the past six months. However, Alphabet stock trades at a forward non-GAAP P/E ratio of 21.77, roughly 16% below its five-year average.
In its most recent quarterly showing, the firm reported sales of $84.74 billion, marking a 13.6% bump on a year-over-year (YOY) basis, blowing past estimates by $445.50 million. This rapid expansion was driven primarily by its dependable “Google Search and other” revenues, jumping 13.8% to $48.51 billion. Additionally, YouTube advertising revenues shot up 13% to $8.66 billion.
Perhaps the firm’s stand-out performer was its Google Cloud Segment, which showed a remarkable 28.8% increase in sales, jumping $10.3 billion. Apart from its superb top-line figures, it also turned an impressive operating profit of $1.17 billion. The figure represents a massive jump from the $395 million in the prior-year period. This performance also underscores the exceptional growth in Google Cloud’s expanding footprint, holding a 12% market share in the enterprise cloud space.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is an AI juggernaut currently in hypergrowth due to strategic expansions and powerful market share gains. This can be seen from the chip giant’s recent top-and-bottom-line metrics, which have surged at a breathtaking pace.
Its Q2 revenues jumped 43% YOY to $12.49 billion while beating estimates by $476 million. The rapid increase in sales was mainly fueled by its acquisition of VMware, which significantly bolstered Broadcom’s financials. Yet, even if we take VMware out of the equation, Broadcom still posted a 12% growth on its own steam.
Moreover, its AI-powered prowess is shown by its record $3.1 billion in revenue from AI products and services in Q2. Moreover, Broadcom’s acquisition of VMware is likely to usher enterprise customers into building private clouds, a profitable new frontier for the tech giant.
Also, let’s not overlook its promising dividend profile, showcasing a forward yield of 1.34% and consistent growth over 13 years.
On the date of publication, Muslim Farooque 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.
On the date of publication, the responsible editor held a long position in GOOG.