Hopper58 schreef op 12 november 2024 14:55:
3 Growth Stocks Wall Street Might Be Sleeping On, But I'm Not
By James Brumley – Nov 12, 2024 at 7:45AM
Just because they aren't anyone's favorites right now doesn't mean they're not worth owning.
Most of the time, Wall Street gets it right. That is to say, more often than not, investors and analysts alike price a stock appropriately based on the underlying company's performance and prospects.
Every now and then, though, a stock's price fails to reflect that company's full value. Wall Street underestimates the organization's probable future. Identifying these instances can be a terrific opportunity for you, since a bullish repricing is due sooner or later.
Here's a rundown of three growth stocks Wall Street might be sleeping on right now, but likely won't be for much longer. One (or maybe even all) may be a good fit for your portfolio.
ASML Holding
You may have never heard of ASML Holding (ASML 0.28%), but there's a very good chance you're benefiting from its technology right now without even realizing it. This Netherlands-based company manufactures the equipment the semiconductor industry needs to make microchips.
It's called lithography, or more specifically in ASML's case, extreme ultraviolet (or EUV) photolithography. This is the art and science of using projected light as a mask or pattern to "spray" circuitry into existence, turning silicon into a functioning microchip.
ASML controls roughly 90% of the EUV lithography market, which is the only category of lithography devices capable of making high-performance computer chips. This leading share is also well-protected by an impressive portfolio of patents.
This doesn't mean that the company is immune to the cyclical headwinds. ASML's top line is only expected to grow a mere 4% this year, dragging per-share earnings lower with it and reflecting the headwind blowing against the semiconductor industry right now. That's the chief reason shares are down nearly 40% from July's high, and back to where they were in the middle of 2021.
As was the case with Opendoor Technologies, though, the bears arguably overshot their goal. This stock's present price is 27% below analysts' consensus target of $923.58. Most of the analyst community also rates ASML stock at a strong buy, perhaps keying in on 2025's projected top-line growth recovery that's projected to unfurl at a pace of nearly 19%. Next year's expected per-share profit of $27.22 would also be record-setting.
Maybe Wall Street isn't errantly overlooking this name. For the time being, however, most of Main Street is.
www.fool.com/investing/2024/11/12/3-g...