Key Takeaways:
- ASML is a leading semiconductor equipment company, with analysts expecting 20% annual earnings growth and 20% upside today.
- Google trades at just 20 times expected earnings, despite the company making heavy investments in AI and analysts forecasting 10% annual earnings growth.
- Taiwan Semiconductor holds over 60% market share in contract chip manufacturing, with earnings projected to grow 20% annually over the next few years.
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
Large-cap stocks are companies that are worth $10 billion or more.
These companies tend to be more stable, and most investors feel more comfortable owning large-cap stocks than smaller businesses that could potentially be more volatile.
Here are three of the best undervalued large-cap stocks to consider for March 2025. All three of these stocks look really interesting.
1: ASML (ASML)
ASML is one of the most important companies in the semiconductor industry, producing the high-end lithography machines needed to manufacture advanced AI chips.
Right now, analysts have an average price target of $882 per share, which is about 20% higher than the current stock price of $743/share.
Key reasons ASML looks undervalued today:
- Analysts expect earnings to grow a little over 20% annually over the next three years.
- The stock trades at 30 times expected earnings, which isn’t too expensive for a nearly irreplaceable business.
ASML remains a dominant force in the semiconductor space, making it a strong long-term investment.
The next two stocks look very interesting as well.
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2: Google (GOOGL)
Google is a dominant force in digital advertising, search, and cloud computing, with an increasing focus on AI-powered services.
Despite its strong fundamentals, the stock remains undervalued relative to its long-term potential.
Right now, Google trades at just 20 times expected earnings, while analysts expect the company’s earnings to grow over 10% annually over the next few years.
Of course, the elephant in the room with Google is AI.
If users continue to turn to AI solutions like ChatGPT instead of Google Search, that could impact the company’s future earnings.
However, Google’s earnings are expected to grow at about 10% annually. These estimates are pretty significant because they’ve been averaged from over 30 investment analysts.
Additionally, Google’s Cloud and AI investments are growing rapidly, which should provide new revenue streams beyond Search.
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3: Taiwan Semiconductor Manufacturing (TSM)
Taiwan Semiconductor Manufacturing, or TSM, is the backbone of the global semiconductor industry, producing chips for companies like Apple, Nvidia, and AMD.
The company holds a nearly irreplaceable position in one of the world’s most important markets, with over 60% market share in contract chip manufacturing.
Right now, analysts have an average price target of $44 per share, which means they think the stock could rise over 30% from its current price of $33 per share.
TSM could be the best stock on this list because it’s essential for the global economy, and it’s on sale.
Today, the stock trades at a forward P/E ratio of 18, while revenue and earnings are expected to grow over 20% annually.
With a dominant market position and strong earnings potential, TSM could be one of the best undervalued large-cap stocks to buy today.
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TIKR Takeaway
Large-cap stocks can offer strong, stable returns over the long-term when bought at the right price.
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!
