Here are 10 Undervalued Foundational Stocks to Buy Now

OguzO Capitalist
06-10

The market is near all-time highs, yet there are still opportunities.

Here are 10 undervalued foundational stocks to buy now: 🧵

1. $UnitedHealth(UNH)$

- 5 Year Revenue CAGR: 11%

- Return on Investment: 11%

- Forward P/E: 13

The largest health insurer in the US.

Its growth in the insurance segment has stagnated because the medical costs and activity rates increased beyond their estimates.

Yet, the Optum unit is still growing in mid-teens.

They can easily go back to growth by bidding up for 2026, and they have already announced that this is the plan.

It's a no-brainer at this level.

2.

$Brookfield Corp(BN)$

- 5 Year Revenue CAGR: 7%

- Return on Investment: 18%

- Forward P/E: 35

Alternative asset management company managed by one of the great investors of our time, Bruce Flat.

They have significant investments in energy, especially renewables and nuclear.

These businesses are going to explode as data center expansion is already driving record demand for energy.

It's a great opportunity at 15 times distributable earnings.

3.

$Alphabet(GOOG)$

- 5 Year Revenue CAGR: 17%

- Return on Investment: 30%

- Forward P/E: 19

The market undervalues the stock as investors believe that search will be disrupted.

Yet, GOOG still has many levers to pull to boost growth like Cloud, Youtube, Waymo and DeepMind.

Even if the search revenues cut in half in the next 5 years, at this growth rate, Cloud alone will be worth $2 trillion in 2030.

The rest will be further upside.

The cheapest mega-cap stock by far.

4.

$Amazon.com(AMZN)$

- 5 Year Revenue CAGR: 13%

- Return on Investment: 12%

- Forward P/E: 34

Amazon is one of the strongest companies to own for the next 10 years.

AI won't disrupt any of its core businesses; to the contrary, they'll benefit significantly from the AI.

It has the largest cloud provider, and it's still growing at an annualized rate of 18%.

It also has significant investments in robotics, which results in expanding margins.

It's undervalued at 20 times operating cash flow.

5.

$ASML Holding NV(ASML)$

- 5 Year Revenue CAGR: 17%

- Return on Investment: 24%

- Forward P/E: 29

Monopoly in Extreme Ultraviolet Lithography machines that are essential for advanced chip manufacturing.

They are about to launch next-gen devices which will cost twice of the current generation.

As TSMC and Samsung are building new fabs in the US and Europe, growth will accelerate.

6.

$LVMH-Moet Hennessy Louis Vuitton(LVMUY)$

- 5 Year Revenue CAGR: 12%

- Return on Investment: 11%

- Forward P/E: 20

Largest luxury chain in the world.

It has had headwinds since the Fed started to raise rates and China slid into deflation.

Yet, these macroeconomic conditions won't sustain forever.

When it ends, luxury will turn to growth.

CEO Bernard Arnault has also been heavily buying in the last two years.

7.

$ulta beauty(ULTA)$

- 5 Year Revenue CAGR: 16%

- Return on Investment: 28%

- Forward P/E: 19

The largest beauty retailer in the US.

Beauty proved to be less cyclical than other discretionary items, which provided it with consistent revenues.

It also buys back around 5% of the company every year.

8.

$Molina Healthcare(MOH)$

- 5 Year Revenue CAGR: 20%

- Return on Investment: 38%

- Forward P/E: 12

A health insurer that doubled revenues since 2020, yet trading at just 12 times forward earnings.

Given that health insurance is not going anywhere soon, I think it's a no-brainer at 12 times forward earnings.

9.

$PayPal(PYPL)$

- 5 Year Revenue CAGR: 7%

- Return on Investment: 7%

- Forward P/E: 14

It has faced pressure from tighter consumer spending, rising rates, and increasing competition in fintech.

Yet, secular tailwinds in e-commerce, digital wallets, and embedded finance remain intact.

CEO Alex Chriss is executing a turnaround strategy focused on innovation, operational efficiency, and reigniting user growth.

Plus, it's buying back 6% of the company this year.

10.

$Novo-Nordisk A/S(NVO)$

- 5 Year Revenue CAGR: 19%

- Return on Investment: 26%

- Forward P/E: 18

The market is concerned about the competition from Eli Lilly; however, Novo's weight loss pipeline is actually stronger.

It has oral semaglutide coming to the market at the end of this year, which offers 15% weight loss in 68 weeks.

Plus, its other pipeline drug amycretin achieved 22% weight loss in 36 weeks. Novo plans to launch it in 2028.

It's an opportunity at 20 times earnings.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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