Americans have less disposable income. That’s been no secret. Families try to balance budgets for food and housing to living expenses and fuel.
And with the national average of regular gasoline reaching $3.85 per gallon, a notable $0.28 increase in gas prices over the past month is noteworthy. Because year-over-year savings on gas dwindles, investors may not be looking for expensive stocks to add to their portfolio lineup.
In light of this, undervalued growth stocks could be a viable answer to such investors who don’t want to spend a bundle. These three companies’ stock offerings are cheap enough for anyone to add this month.
NVIDIA Corporation (NVDA)
NVIDIA Corporation (NASDAQ:NVDA)boasts a market share of 83.7%, with a plethora of growth catalysts tailored for future profitability. Most notably, the company recently announced a new configuration for an artificial intelligence chip. It is designed to effectively power large AI models, such as ChatGPT.
The new chip, called the GH200, will prove to be convenient for consumers and drive growth. That, as the AI market will grow from $454.12 billion in 2022 to $2,575.6 billion in 2032 on a 19% CAGR.
In addition, NVDA stock is up 185.40% year to date (YTD). Its latest earnings results are likewise strong, with a revenue of $7.19 billion beating estimates by $669.47 million and growing 18.8% year over year (YoY).
Furthermore, EPS of $0.83 grew 28.13% YoY. Net income of $2.04 billion is up over 28% YoY, exhibiting strong growth in its financials. Yahoo! Finance additionally reports 42 analysts having an average 1-year price target of $501.65 for NVDA stock, with the range being from $368.21 to $767.
Therefore, with a history of strong financials, and tailwinds from their GH200 chip, NVDA stock is solid.
Carnival Corporation (CCL)
Carnival Corporation (NYSE:CCL) is the global leisure travel leader offering cheap getaways to more luxurious vacations within the Carnival Cruise line.
A dominator of its market, Carnival has numerous catalysts for growth. Recently, the company announced its Seabourn brand released a new and ultra-luxury expedition ship named Seabourn Pursuit. This is a result of more consumers opting to cruise in the post-pandemic world.
In fact, the cruise industry’s projected 2023 revenue of $25.14 billion surpassed 2019’s revenue of $23.4 billion. In addition, the cruise industry is projected to grow at a 9.29% CAGR to reach $35.87 billion by 2027.
At $16.79, CCL stock is up 110.66% YTD. Yahoo! Finance reports notable firms recently upgrading CCL stock from a “hold” to “buy”. And 14 analysts have a 12-month price target of $17.18.
Carnival’s latest quarterly earnings also display a strong financial performance. It showed revenue of $4.91 billion growing 104.54% YoY, beating projections by $136.28 million. EPS is reported to be -$0.31. In fact, the consensus for EPS in the next quarter will reach $0.76, or a 345% percent change.
Ultimately, CCL is a currently cheap, solid growth stock. Its Seabourn vessel will get more consumers in the long term, making CCL stock a great pick for your portfolio.
Electronic Arts (EA)
Electronic Arts (NASDAQ:EA) is a video game developer known for its sports franchises such as FIFA, Madden, and F1.
EA and FIFA have partnered for many years to create the FIFA soccer franchise, and EA has paid FIFA to license trademarks. With the conclusion of its contract with FIFA for game licensing, EA gets relieved of FIFA’s high licensing fee of $150 million for its new game, EA Sports FC.
Additionally, EA recently acquired Respawn Entertainment, a producer of many successful pop-culture titles, and its previous acquisition of Popcap to grasp the gaming market. Popcap is known among consumers for “Bejeweled” to “Plants vs Zombies” games.
EA stock is down 0.02% YTD. Yahoo! Finance reports 28 analysts projecting a 12-month price target of $127.00 to $162.00, or a 3.87% to 32.49% upside.
In its Q2 Earnings, the company had revenue of $1.92 billion that grew 8.89% YoY. EPS increased by 146.41% YoY to $1.01, demonstrating continued profitability. So, the net change in cash of -$165 million increased by 74.62% YoY.
Thus, given the company’s increasing profitability through removing licensing fees, strong financials, and well-managed acquisitions, EA stock emerges well. It is an undervalued “buy” recommendation for growth-oriented investors.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
