Preferring Lesser-Known Stocks in Nasdaq Marketplace
In the recent downturn, the Nasdaq Stock Market, home to popular tech stocks and plenty of small cap firms, has been leading the way down. But fear not, as this market correction might open up some exciting investment opportunities in the coming months. Here's a rundown of some standout Nasdaq stocks that merit your attention:
East West Bancorp (EWBC)
I previously recommended East West Bancorp a year ago, and it soared 21%. Based in Pasadena, California, this bank finances numerous film and television projects and operates in China, setting it apart from many other U.S. banks. Over the past decade, East West has seen revenue growth of 14% per year.
Currently trading at around $88 a share, East West presents a favorable buying opportunity. Its earnings multiple stands at approximately 10 times, while its price-to-book value is 1.6. Relations between the U.S. and China might be frosty, but should they improve, it could significantly benefit East West.
Diamondback Energy (FANG)
The Permian Basin in west Texas and eastern New Mexico has long been a gold mine for oil and gas. With Pioneer Natural Resources Co. being acquired by Exxon Mobil Corp., I believe Diamondback Energy Inc. (FANG) is now the best pure play on the Permian Basin.
Over the past ten years, Diamondback has increased its revenue by more than 24% annually. Slowing down last year, you can pick up Diamondback shares for approximately $150, which translates to less than 10 times earnings.
Taylor Morrison (TMHC)
Homebuilder Taylor Morrison Home Corp. is based in Scottsdale, Arizona, and operates in Arizona and 11 other states, including Florida and Texas. What sets Taylor Morrison apart is its emphasis on environmental controls and digital marketing. This strategy has led to annual revenue growth of 14% over the past decade.
Matson (MATX)
Trade tensions have sparked concerns about long-term trade wars, but I don't foresee trade drying up entirely. Over the past ten years, Matson Inc., a Hawaii-based ocean shipper, has increased sales by 11% each year and earnings by 28%. If Matson can maintain even half of its previous growth rate, I think the stock will deliver gains. Currently, Matson is priced at only 9 times recent earnings.
Amphastar (AMPH)
California-based Amphastar Pharmaceuticals specializes in inhalation and intranasal products. The company's naloxone hydrochloride is used for emergency opioid overdose treatment, and its asthma inhalers are another major product. Wall Street analysts predict that the stock could hit $38 within a year, with revenue growth averaging 10.8% annually over the past decade.
In these uncertain times, it's important to evaluate these companies with a discerning eye, considering their financial performance, industry trends, analysts' ratings, valuation metrics, and growth potential. Keep in mind that past performance doesn't guarantee future results, and always make investment decisions based on thorough research and analysis.
Disclosure: I personally own Apple, Diamondback Energy, and Matson, and they constitute a significant portion of my clients' investments.
[1] East West Bancorp financials: Investor.gov[2] East West Bancorp analyst ratings: Yahoo Finance[3] East West Bancorp price targets: Thomson Reuters[4] Diamondback Energy financials: Diamondback Energy Investor Relations[5] Taylor Morrison financials: Taylor Morrison Home Corporation Investor Relations[6] Matson financials: Matson Investor Relations[7] Amphastar Pharmaceuticals financials: Amphastar Pharmaceuticals Investor Relations
- Despite the Nasdaq Stock Market's current downturn, standout stocks like East West Bancorp (EWBC), Diamondback Energy (FANG), Taylor Morrison (TMHC), Matson (MATX), and Amphastar Pharmaceuticals (AMPH) might offer exciting investment opportunities by 2024, particularly if investors consider their financial performance, industry trends, analyst ratings, valuation metrics, and growth potential.
- For example, East West Bancorp (EWBC), with its history of 14% annual revenue growth over the past decade, is currently trading at around $88 a share, offering a favorable buying opportunity with an earnings multiple of 10 times and a price-to-book value of 1.6.
- Another promising stock is Diamondback Energy (FANG), the best pure play on the Permian Basin, which has seen more than 24% annual revenue growth over the past ten years, and can currently be purchased for approximately $150, translating to less than 10 times earnings.
