Here are 10 High-quality, UUndervalued Stocks

Market is now at extreme fear territory and it's giving away many bargains.

Here are 10 high-quality, undervalued stocks:

1.

$Amazon.com(AMZN)$

Forward P/E: 33

Gross Margin: 48%

5 Year Revenue CAGR: 14%

Market leader in e-commerce and cloud computing trading at its lowest valuation in a decade. Given the growth estimates, its cloud business will alone generate over $360 billion revenue in 2030.

This is an invincible company the market is giving away because extreme fear.

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2.

$Alphabet(GOOG)$

Forward P/E: 19

Gross Margin: 58%

5 Year Revenue CAGR: 17%

Its search volume is growing despite the fears and bulk of the search is now made up of commercial queries with high purchase intent. It also has the fastest growing cloud business and dominant video streaming platform.

Trading at its lowest valuation since early 2023 dips.

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3.

$Nu Holdings Ltd.(NU)$

Forward P/E: 19

Net Interest Margin: 17%

5 Year Revenue CAGR: 80%

This is the largest digital bank in the world with 32% net profit margin, which is unprecedented in the industry.

It's rapidly expanding in Mexico and Colombia and is now trading below 19 times forward earnings despite +20% expected growth.

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4.

$SoFi Technologies Inc.(SOFI)$

Forward P/E: 53

Net Interest Margin: 5.8%

5 Year Revenue CAGR: 47%

Its rapidly diversifying away from capital intensive revenue sources like lending to capital light revenues like loan platform business. Business is on track to generate $0.50-0.80 EPS in 2026.

Trading at just 15 to 25 times 2026 earnings.

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5.

$Meta Platforms, Inc.(META)$

Forward P/E: 25

Gross Margin: 81%

5 Year Revenue CAGR: 17%

It effortlessly posted 20% revenue growth last quarter and proved that its operations benefits from AI applications rather than threatened by it.

Trading at just 25 times forward earnings.

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6.

$American Express(AXP)$

Forward P/E: 17

Net Margin: 16%

5 Year Revenue CAGR: 18%

This is one of the highest quality compounders in the market. It benefits from inflation because of the increasing basket totals and protected against recession due to its wealthier client base compared to Visa and Mastercard.

It's currently trading at 17 times forward earnings. Last time the stock went below 15 times forward earnings, it doubled in the next 12 months.

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7.

$Taiwan Semiconductor Manufacturing(TSM)$

Forward P/E: 19

Gross Margin: 56%

5 Year Revenue CAGR: 16%

It manufactures over 90% of the most advanced chips in the world. It's the only manufacturer having +50% yields in the next-gen 2nm process.

It doesn't have any competition and the chip demand will only grow.

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8.

$ASML Holding NV(ASML)$

Forward P/E: 27

Gross Margin: 51%

5 Year Revenue CAGR: 14%

It's one of the last pureblood monopolies in the world with 100% market share in EUVL machines.

These machines are essential to manufacture the cutting edge chips. TSMC has just signed a deal to build five more plants in the US. Intel and Samsung are trying to catch-up. Order book of ASML is about to explode.

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9.

$UnitedHealth(UNH)$

Forward P/E: 15

Profit Margin: 4%

5 Year Revenue CAGR: 11%

Vertically integrated healthcare giant with hospital and insurance arms. It's one of the steadiest compounders in the market. Experiencing headwinds due to investigations and murder of its CEO but fundamentals remain strong.

One of the most bought stocks in the Wall Street.

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10.

$PayPal(PYPL)$

Forward P/E: 13

Gross Margin: 40%

5 Year Revenue CAGR: 10%

One of the largest payment processors in the world. It's still growing the top line at high-single digits and the company is set to buyback 9% of the company every year.

Extremely favorable risk/reward proposition at under 15 times forward earnings.

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