2 Incredibly Cheap Growth Stocks to Buy Now
In the burgeoning bull market, some businesses are performing exceptionally well despite their shares not seeing the same levels of appreciation. While some industry players face hurdles due to challenging macroeconomic conditions impacting their stock prices, discerning investors are constantly on the lookout for valuable opportunities. It’s crucial to look beyond price and focus on companies with robust fundamentals, including a strong underlying business, a competitive edge, and a clear path to growth. With these criteria in mind, here are two attractively priced companies that could make compelling additions to your investment portfolio.
Hims & Hers (NYSE: HIMS)
Hims & Hers operates a sophisticated health and wellness platform, offering seamless access to telehealth services, prescriptions, and a variety of over-the-counter products. Through its subscription model, users can have these products and services delivered automatically, enjoying the added benefit of free, discreet shipping directly to their homes.
The company has recently ventured into the glucagon-like peptide 1 (GLP-1) weight loss market, stirring interest among investors with competitively priced offerings. This move into GLP-1 injections expands its portfolio into an area witnessing increasing demand, making its services more accessible to a broader audience.
With a focus on sexual health, skincare, hair care, and mental health, Hims & Hers continues to diversify its offerings. Despite a significant stock price increase over the past year, its valuation remains appealing with a price-to-sales (P/S) ratio indicative of a growth stock’s potential. The company’s impressive first-quarter performance showcases a solid revenue increase and a substantial jump in net income and subscriber growth, highlighting its strong market position and operational efficiency.
Upstart (NASDAQ: UPST)
Upstart presents a contrasting narrative, with a significant decrease in share value over the past year. However, its current valuation based on P/S and price-to-book (P/B) ratios suggests that the stock is undervalued. Upstart’s platform leverages machine learning and artificial intelligence to revolutionize the lending process, assessing risk and facilitating loans with greater efficiency. Despite the challenges posed by high interest rates and a cautious consumer lending atmosphere, Upstart’s innovative approach holds potential for disruption within the vast lending market.
The recent recovery in loan volumes and the sequential growth in its newer products suggest resilience and adaptability. Upstart’s revenue growth, driven by bank referral and platform fees, underscores its ability to navigate economic fluctuations. For those willing to embrace risk, Upstart’s pioneering technology in AI-driven lending offers a compelling investment thesis.
Before diving into these investment opportunities, it’s important to assess your risk tolerance and investment strategy. While both Hims & Hers and Upstart present attractive growth prospects at their current valuations, potential investors should conduct thorough research and consider their long-term investment goals. As the market continues to evolve, these companies offer unique propositions for those looking to diversify their portfolios with growth-oriented stocks.
As investors seek to capitalize on these opportunities, remember that investing in stocks also carries risks, and it’s essential to make informed decisions. With a clear understanding of your investment profile and a strategic approach, you can harness the potential of these undervalued growth stocks to bolster your portfolio.
