Four Affordable Stocks Worth Not Overlooking
Investing in seemingly fading stocks like PayPal Holdings (PYPL), Etsy (ETSY), Lyft (LYFT), and Crocs (CROX) might appear counterintuitive, but there are compelling reasons to back their value.
First, value investing is an effective philosophy, especially when applied to underestimated companies like PayPal and Etsy. Both companies have proven track records and a strong foundation in their respective sectors - fintech and e-commerce. Their stocks currently trade at more affordable valuations compared to their historical or sector median prices, making them attractive bets for long-term investors who trust in their fundamental strength.
Second, the growth potential of these businesses should not be underestimated. Etsy, with its unique position as a dominant player in the handmade and specialty goods market, demonstrates resilience in the face of market volatility. Employing stronger marketing strategies, such as targeting gift-buying opportunities, can potentially help it regain lost ground and recharge its growth engine.
Third, these businesses may be attractive acquisition targets, especially Lyft. Rumors have swirled that Amazon is considering adding Lyft to its portfolio to bolster its delivery operations. Additionally, Lyft's vast network of 24 million riders and its demand prediction capabilities make it an alluring target for strategic acquisitions.
Lastly, the perceived weaknesses of these stocks may have created unjustified undervaluations, as shown by companies like Crocs. Despite struggling with market pressure and acquisition of underperforming brands, the company continues to show its resilience by relying on innovation and evolving its footwear offerings.
In the current market environment, growth stocks often trade at high premiums. Investing in undervalued growth opportunities like these companies could offer attractive returns, given their potential to outperform as market conditions improve or their fundamental strengths become more widely recognized.
Investing in these undervalued companies, such as PayPal and Crocs, requires a substantial amount of money for purchase due to their stock market presence. Following a value investing strategy, one can see the potential financial rewards in the long term, considering these companies' robust foundations and attractive valuations.
