The Nasdaq is off to a scorching start in 2024. The Nasdaq 100 Index is making new highs seemingly almost every week, and glamor stocks in fields such as artificial intelligence (AI) and semiconductors are blasting off.
This has left some investors worried about a potential bubble. There are definitely some significantly overvalued Nasdaq stocks out there. However, there are still quite a few good buys within the Nasdaq today. These three Nasdaq stocks to buy, in particular, offer good entry points right now.
Bruker (BRKR)
Bruker (NASDAQ:BRKR) is an interesting life sciences company. The firm is most known for its niche lab equipment, such as nuclear magnetic resonance (NMR) spectroscopy machines. Bruker has operated in these fields for decades and has a dominant market position for several of its key product lines.
Bruker saw a slowdown in sales over the last couple of years as various academic institutions and biotech firms reined in spending amid the pandemic and inflationary conditions. However, things are now normalizing, and Bruker announced excellent earnings results earlier this week.
Additionally, Bruker has another intriguing element. It has its Bruker Energy & Supercon Technologies “BEST” division, which, while small, is rapidly growing. 2023’s excitement around potential developments in the superconductor space seemingly focused attention on the fact that Bruker is one of the few firms with a sizable line of existing superconductor revenues today.
While Bruker started off making superconductors for its own lab equipment, it has increasingly found uptake in applications such as renewable energy and electronics. Therefore, all this makes BRKR stock a great pick as shares break out higher following its surge in earnings.
Honeywell (HON)
One of the more unique growth opportunities on the Nasdaq is industrial company Honeywell (NASDAQ:HON). And yes, Honeywell is indeed on the Nasdaq. It transferred its listing over the New York Stock Exchange in 2021, highlighting its efforts in the technology and sustainability fields.
Honeywell’s roots go back to Butz-Thermo Electric Regulator, a company which developed the first predecessor to the modern thermostat. Over the decades, Honeywell has created all sorts of inventions including barcodes, unleaded gasoline, biodegradable detergents and aviation autopilots.
Today, Honeywell is highly focused on industrial automation. Companies like Amazon.com (NASDAQ:AMZN) have prospered due to their smart warehouses and logistics networks. In fact, Honeywell builds much of the underlying infrastructure to support these functions.
And, given Honeywell’s history, it should be surprising that the company keeps developing other cutting-edge innovations, such as quantum computing. Honeywell helped generate novel discoveries in quantum computing. It has spun that unit out into a separate firm, Quantinuum, which is pursuing solutions in cybersecurity, drug discovery, supply chain management, AI, and finance among other fields. Honeywell retains a majority shareholding in Quantinuum, and the firm just raised funds at a $5 billion valuation in January.
This combination of factors makes HON stock a great way to get growth exposure to several promising fields at a reasonable starting valuation.
Pepsico (PEP)
Another surprising company that resides on the Nasdaq exchange is soft drinks and snack food giant Pepsico (NASDAQ:PEP).
Unlike most Nasdaq 100 Index companies, Pepsico hasn’t seen its shares appreciate meaningfully over the past year.
This is understandable. Consumer staples companies such as Pepsico have sold off thanks to higher interest rates. In addition, concerns exist that the GLP-1 category of weight loss drugs could meaningfully lower demand for soft drinks and high-calorie snack foods.
However, these concerns seem baked into the price already with PEP stock at a reasonable 21 times forward earnings. Pepsico has delivered steady earnings growth and rising dividend payments for decades on end, and this blue chip Nasdaq stock is a relative bargain in the market today.
On the date of publication, Ian Bezek held a long position in BRKR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
