The 3 Most Undervalued Nasdaq Stocks to Buy in March 2024

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Growth-oriented and patient investors love undervalued NASDAQ stocks to sink their teeth into. Despite current low prices, undervalued stocks present the opportunity to reap the benefits of future growth and sell at a significantly higher price.

There is much to be said about all three of these stocks, but the one thing they have in common right now is a price that is hard to believe. Following many Q4 reports last month, we looked into how well these companies are performing and the returns they can bring this year.

We’ll detail these stocks’ value through proven growth statistics, future investments and optimized strategies that will make their current price seem too good to be true.

Airbnb (ABNB)

Airbnb (ABNB) logo on phone screen stock image.

Source: sdx15 / Shutterstock.com

Coming into this year, Airbnb (NASDAQ:ABNB) had some serious momentum, riding the wave of a 12% year-over-year increase in nights and experiences booked and a 17% YOY increase in revenue. This homestay and experience provider has a recognizable brand worldwide and has overcome everything the world has thrown at the travel industry these last few years.

Despite its proven reputation and solid Q4, Airbnb stock is currently sitting at $166.22, atop a fairly consistent growth trend that started in November of last year. Airbnb announced its stock buyback plan last month to respond to this low price. 

The plan details Airbnb’s intention to spend up to $6 billion to buy back its shares to reestablish financial security. If it can spend all of that this year, the effectiveness of the shares will reach around $5 billion, meaning a ~5% decrease in outstanding shares.

Not only does this increase prices for holders, but it will allow Airbnb to reinvest its capital into expansion plans. And Airbnb has just that. New property types, tiers and more locations are just a few investments Airbnb wants to set in motion this year.

With a current price that marks Airbnb as undervalued, riding a solid growth trend, this stock might be a buy for investors looking to see returns long-term.

United Therapeutics (UTHR)

In this photo illustration United Therapeutics Corporation (UTHR) logo is seen on a mobile phone screen.

Source: viewimage / Shutterstock.com

United Therapeutics (NASDAQ:UTHR) is a criminally undervalued biotech stock. At the end of last year, it had a P/E ratio of 12.48; this year, it has an annual EPS estimate of $23.30, up from $19.81 last year.

As a developer of medicine and products to treat chronic illnesses, United Therapeutics has shown immaculate growth over the last five years, with a 34% increase in net income. With this tremendous profit, United Therapeutics is making intelligent investments in the future.

One such exciting development is the completion of United Therapeutics’ merger with Miromatrix Medical at the end of last year. Miromatrix’s exciting breakthrough in developing a fully implantable manufactured kidney, the mirokidney, is set to be complete by Dec. 2025.

Overall, United Therapeutics has established itself in the biotech industry, and it couldn’t be a better deal for investors than now. It’s a great investment with a low valuation and tremendous potential for growth and profits over the next few years. 

PayPal (PYPL)

PayPal Holdings, Inc. (PYPL) icon displayed on smartphone with keyboard background. is an American multinational financial technology company operating an online payment

Source: Poetra.RH / Shutterstock.com

PayPal (NASDAQ:PYPL) is a leader in fintech and offers some of the most diverse and widely used services and products on the market. However, despite its popularity, PayPal is currently worth over 80% less than its peak price. 

If you think this valuation is due to PayPal’s poor Q4 performance, it may surprise you that PayPal had one of the best quarters in the sector last year. The fintech giant reported 9% year-over-year revenue growth and non-GAAP EPS of $1.48, showing a 19% increase year over year.

While PayPal has experienced a slowdown and certainly a decrease from its peak during the pandemic, it is by no means out for the count. PayPal will continue to invest in expanding Venmo and current relationships with large partners, such as Uber

Diversified investments will allow PayPal to restabilize and continue the excellent results reported in Q4. Investors might want to take advantage of the current price slump and watch as PayPal climbs once again.

On the date of publication, Joel Lim 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 Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.

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The post The 3 Most Undervalued Nasdaq Stocks to Buy in March 2024 appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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