Finding undervalued growth stocks in the midst of a bull market can be a challenging task. Growth stocks are investments that increase in value over time, and with the S&P 500 trading up approximately 25% so far this year, uncovering these hidden gems at discounted prices remains a tough but achievable endeavor.
Just because a growth stock has already seen gains in value doesn’t mean it has reached its peak. Allowing your successful investments to continue growing is a sound strategy, as assets in motion tend to stay in motion. Unless unforeseen circumstances negatively impact these growth stocks, there is a good chance they will keep climbing.
Moreover, the growth of a stock does not necessarily indicate that it is fully valued. Some growth stocks may be growing faster than the market’s valuation. This is the type of undervalued growth stock that investors should be on the lookout for: one whose fundamentals are solid and expanding as it begins to realize its full potential.
Here are three undervalued growth stocks that fit the criteria and have the potential to double in value by the end of 2025:
– Turkcell Iletisim Hizmetleri (TKC): Turkcell is the leading mobile phone operator in Turkey, offering broadband services, digital payment systems, cloud services, and data center operations. Despite economic challenges, Turkey’s GDP has been growing steadily, and Turkcell’s stock has shown significant growth. Trading at a low multiple compared to its projected earnings and with strong profit growth forecasts, TKC stock is considered an undervalued gem poised for growth.
– Genesis Energy (GEL): Despite its name, Genesis Energy is a midstream operator in the oil and gas industry with a strong presence in the Gulf coast region. Operating under long-term contracts, Genesis has seen steady stock growth and is expected to continue expanding its profits. While being organized as a master limited partnership may introduce tax complexities, GEL remains an undervalued growth stock with potential for significant appreciation.
– iShares S&P 500 Growth ETF (IVW): IVW is an ETF that tracks large U.S. companies with above-average earnings growth expectations. By investing in IVW, investors gain exposure to leading growth stocks like Microsoft, Apple, and Nvidia at a low cost. With the potential for continued market appreciation and a minimal expense ratio, IVW offers a cost-effective way to own a basket of top growth stocks.
In conclusion, while finding undervalued growth stocks in a bullish market may be challenging, diligent research and a focus on solid fundamentals can uncover promising investment opportunities with the potential for significant returns.