2024’s Wealth Doublers: 3 Undervalued Growth Stocks to Grab Now

Stocks to buy

Markets are rallying, but not all stocks are sharing in the gains. Several well known securities are struggling right now. These include stocks that soared during the pandemic rally of 2020 and 2021 only to get mauled when a severe bear market took hold last year. While stock price declines can be disconcerting, it’s important for investors to remember that downturns present buying opportunities. Many quality stocks look undervalued and downright cheap at current levels, presenting a chance to buy low and eventually sell high when the share price recovers. As we head into 2024, there are signs that the current market rally might be broadening out beyond technology stocks to include other sectors and securities. In the meantime, here is 2024’s wealth doublers: three undervalued growth stocks to grab now.

Undervalued Growth Stocks: HP (HPQ)

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Shares of personal computer manufacturer HP (NYSE:HPQ) have been on a rocky road lately. Confidence in HPQ stock was shaken in recent months after it was disclosed that Warren Buffett was selling down his position in the company. Now, HP has issued ho-hum third-quarter financial results that met Wall Street forecasts but generated little excitement. Consequently, HPQ stock is down 2% throughout the last 12 months even as the tech-laden Nasdaq index has gained 28% in the same time period.

The good news is that the slump has made HPQ stock cheap. The shares look undervalued trading at just eight times future earnings forecasts. That’s very low for a tech company such as HP that has a market capitalization of nearly $30 billion. Additionally, HP pays a quarterly dividend of 28 cents a share, giving it a strong yield of 3.84%. During its Q3 print, HP executives said that they foresee a turnaround coming in 2024, with the global PC market expected to return to growth. Grab HPQ stock now as it easily earns its spot on our list of undervalued growth stocks.

Lowe’s (LOW)

the front of a Lowe's store

Source: Helen89 / Shutterstock.com

Home improvement retailer Lowe’s (NYSE:LOW) is another stock that got knocked lower by disappointing earnings. LOW stock fell 5% after the company lowered its full-year sales outlook and reported that its Q3 revenue declined nearly 13% from a year ago. The share price is now flat for this year (down 0.39%) and has declined 8% over the last 12 months. Trading at 15 times future earnings estimates, Lowe’s looks like a bargain at current levels. It also pays a dividend, one that is yields 2.22% for a payout of $1.10 per share.

In announcing its latest results, Lowe’s said that it is experiencing a “greater-than-expected pullback” by consumers when it comes to spending on discretionary items and big-ticket purchases such as appliances. The company has struggled this year as consumer demand for home improvement projects weakens and higher mortgage rates cool the housing market. However, if there’s a silver lining, Lowe’s said that sales to professional contractors and builders now account for 25% of its revenue, and growing.

Robinhood Markets (HOOD)

Robinhood's mobile app logo is displayed on a smartphone screen. Robinhood stocks. HOOD stock

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It’ll be forever associated with the meme stock rally of 2021, but Robinhood Markets (NASDAQ:HOOD) has potential, especially if the stock market and cryptocurrency rallies gather steam in 2024. The online brokerage and trading app performs best when markets are in a frenzy, which is what happened two years ago. The bear market of 2022 crushed HOOD stock and it is only now starting to recover. Year-to-date, the company’s share price is up a slight 2%.

Investors are sensitive to any news from Robinhood, especially as the brokerage remains unprofitable and its earnings are lackluster. Recently, HOOD stock dropped 14% after the online brokerage reported weaker-than-expected Q3 financial results and said that the number of monthly active users on its online trading platform declined 16% from a year earlier. However, Robinhood also recently announced plans to launch a brokerage operation in the United Kingdom and extend crypto trading to customers in Europe.

Robinhood Markets doesn’t pay a dividend, and there’s no price-earnings ratio given that the company has yet to turn a profit. However, at $8 a share and near a 52-week low, HOOD stock looks cheap. If you are looking for undervalued growth stocks, start here.

On the date of publication, Joel Baglole 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.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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