With the technology benchmark Nasdaq index encountering some choppy weather since April, speculators may want to consider undervalued Nasdaq stocks. Granted, it’s always risky betting on enterprises that haven’t caught other people’s attention. Still, the rewards could be fantastic.
It’s just like going to the discount rack at your favorite luxury department store. You might find apparel that’s marked 50% off. However, a quick look at the sizes and you’ll quickly discover why the retailer is so eager to move the inventory.
Still, the Nasdaq features several ideas and analysts can’t cover them all with the same magnitude of attention. Invariably, then, some deserving ideas get overlooked. Here’s an opportunity to enjoy some speculative gains with undervalued Nasdaq stocks.
Caesars Entertainment (CZR)
One of the most recognizable names in the resorts and casino space, Caesars Entertainment (NASDAQ:CZR) owns, leases, or manages domestic gaming properties covering 18 states. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America. While it’s a risky idea for undervalued value stocks due to the economic situation, CZR could be enticing for speculators.
Yes, the revenge travel phenomenon may be over. Consumers may lack the acute desire to leave the house following a forced quarantine. Nevertheless, evidence points to consumers prioritizing experiences. And while it’s true that economic considerations may hamper exotic vacations, there are plenty of sights to be seen domestically. This dynamic could then help lift CZR stock.
Right now, shares trade at 11.62X forward earnings, below the sector median 16.34X. Also, CZR trades at 0.69X trailing-year revenue, below 79.37% of the competition. Granted, analysts anticipate a slow year in fiscal 2024. However, in fiscal 2025, blue-sky EPS and revenue targets call for $4.56 and $12.59 billion, respectively.
Last year, the company posted EPS of $3.64 on revenue of $11.53 billion.
Bumble (BMBL)
A popular dating app, Bumble (NASDAQ:BMBL) entered the public market with much fanfare. Part of the reason may have been centered on the social equity narrative. Back during the initial public offering (IPO), society grappled with various issues that came to the forefront. Therefore, Bumble’s messaging – where women make the first move in traditionally oriented pairings – aligned with the ideological winds.
Unfortunately, this concept of pushing gender parity – while certainly noble – clashed with business directives. Effectively, gentlemen had little incentive to stick with the platform considering that competing services don’t impose such obstacles. However, Bumble not too long ago had a change at the top. The new CEO may be willing to shake things up, which could be super helpful for BMBL.
Let’s face it, BMBL is one of the undervalued Nasdaq stocks for good reason. Yes, it trades at 17.37X forward earnings and 1.54X trailing-year revenue. Both stats are discounted relative to the industry. However, the aforementioned obstacle was a distraction.
But remove the distraction and things could get very interesting for Bumble. It should be on the watch list.
AbCellera Biologics (ABCL)
An advanced biotechnology firm, AbCellera Biologics (NASDAQ:ABCL) builds engines for antibody drug discovery and development. Per its corporate profile, AbCellera discovers antibodies from natural immune responses, which are pre-enriched for antibodies. It features multiple collaborations with several high-profile pharmaceutical firms covering a variety of diseases and conditions.
Now, the risk factor for betting on ABCL stock centers on its volatility. Since the start of the year, shares stumbled 31%. What’s more, the latest earnings print didn’t exactly help matters. The company reported a loss per share of 14 cents, which was favorable compared to the expected loss of 17 cents. However, AbCellera generated revenue of only $9.95 million. That was notably worse than the expected result of $10.84 million.
Still, it’s also possible that ABCL is now de-risked as the negativity has already bitten into the share price. Moving forward, analysts anticipate that for fiscal 2024, sales could land at $43.94 million, up 15.6% from last year’s tally of $38.02 million. And in fiscal 2025, revenue could rise to $63.5 million.
It does need to dust itself off from the mixed first-quarter results, there’s no denying that. Still, it could be a candidate for undervalued Nasdaq stocks given its very modest price-to-tangible book ratio of 1.17X.
On the date of publication, Josh Enomoto 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.
