In the current market environment, finding undervalued growth stocks has become a challenging task due to the sharp rise in equities since the beginning of the year. However, there are still opportunities for contrarian speculators willing to dig around for potential investments.
The Federal Reserve’s decision to hold benchmark interest rates at current levels, despite acknowledging persistently elevated inflation, has stirred some choppy waters in the market. This news may not have been what investors were hoping for, but it has created opportunities to explore undervalued growth stocks that are trading at a discount.
One such stock to consider is Las Vegas Sands (LVS), a casino and resort company that faced challenges during the Covid-19 pandemic but is now showing signs of recovery. With a three-year revenue growth rate of 52.2%, Las Vegas Sands presents a compelling opportunity for investors. The company’s focus on travel prioritization could attract tourists looking for unique experiences, especially as domestic travel becomes more appealing.
Another potential investment is Coursera (COUR), a for-profit online course provider that has seen its stock value decline significantly since its public market debut. Despite operating losses, Coursera has posted a three-year revenue growth rate of 23.2%. With analysts projecting sales to increase in the coming years, Coursera could be an undervalued growth stock worth considering.
Lastly, pharmaceutical giant Pfizer (PFE) presents an interesting opportunity for investors looking for undervalued growth stocks. Although the company faced challenges as interest in Covid-19 vaccines waned, Pfizer remains a relevant player in the pharmaceutical industry. With analysts forecasting revenue growth in the coming years, Pfizer could potentially spark another growth cycle and offer upside potential for investors.
While these stocks may carry some risks, they present opportunities for contrarian investors looking to capitalize on undervalued growth stocks in the current market environment. It’s important for investors to conduct thorough research and consider their risk tolerance before making any investment decisions.