Key Takeaways:
- Analysts see over 50% upside for Nvidia, with earnings expected to grow over 38% annually.
- Analysts see over 30% upside for Nu Holdings because the company is expanding rapidly, while trading at a low valuation.
- Toast is expected to see over 20% annual earnings growth, and analysts see over 25% upside for the stock today.
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Growth stocks can deliver massive returns, especially when they are undervalued.
Here are three undervalued growth stocks that could see big gains in the coming years. Stocks #1 & #2 look the most undervalued today, but Stock #3 might have the most long-term growth potential.
1: Nvidia (NVDA)
Nvidia is the world’s leading GPU manufacturer, driving innovation in AI, gaming, and data centers.
Despite its dominance, the stock is down around 20% in the past three months, making it look attractive today.
Why analysts are bullish on Nvidia:
- The stock trades at 25 times forward earnings, which is low relative to its growth potential.
- Analysts expect earnings to grow at over 64% CAGR over the next 3 years.
- The average analyst price target is $173 per share, suggesting over 50% upside for the stock today.
Even after its recent decline, Nvidia remains one of the best long-term growth stocks in tech.
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2: Nu Holdings (NU)
Nu Holdings is one of the fastest-growing fintech companies in Latin America, helping millions of customers access digital banking services.
The company is expanding rapidly, and over the next 3 years, analysts expect:
- 32% annualized revenue growth
- 36% annualized earnings-per-share growth
Despite this high growth, the stock trades at just 19 times earnings, which is why analysts see over 30% upside today.
Nu Holdings offers strong long-term potential at an attractive valuation, making it a compelling opportunity.
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3: Toast (TOST)
Toast provides point-of-sale systems, payment processing, and other software solutions tailored for the restaurant industry.
Over the next 3 years, the company is exepcted to benefit from:
- 20% annualized revenue growth as more restaurants adopt digital payment solutions
- 43% annualized EPS growth from rising profit margins
Despite this growth, the stock trades at just 39 times expected earnings, and analysts see over 25% upside today.
With the restaurant industry increasingly relying on digital solutions, Toast could be a major long-term winner.
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TIKR Takeaway
Investing in undervalued growth stocks with strong long-term potential can lead to outsized returns over time.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
