Operating over 29 markets and centered in New York, the Nasdaq was the world’s first automated stock exchange. With 2,500 companies+ on the Nasdaq and heavy exposure to the technology industry, it is no wonder that many companies in many investors’ portfolios are brimming with companies trading on this exchange.
Secular trends such as artificial intelligence, machine learning, and cloud computing have all been major factors in driving many tech companies, and thus the Nasdaq’s corresponding stock (NASDAQ:NDAQ). However, not all investors simply like investing in broader indexes. For more risk-tolerant investors dedicated to due diligence and research, single stock picks within the exchange can offer much higher profitability and return. As such, in this article, we’ve highlighted three great Nasdaq stocks to buy that all investors should keep on their radar.
Textron (TXT)
Textron (NASDAQ:TXT) is an innovative aerospace and defense company that is best known for its global product lineup of brands including Cessna, Beechcraft, and Bell. Currently, Yahoo! Finance analysts are projecting a one-year price range between an average of $99.62 and a high of $121.
In TXT’s recent Q1 earnings, management provided positive financial guidance, balanced out by macro tailwinds such as inflationary cost pressures and supply chain disruptions. Thankfully, they have also noted a reacceleration of TXT’s Bell helicopter, which has reflected the resurgence of demand from commercial and military end markets.
Valuation-wise, the recent underperformance in the recent quarter has left Textron to remain a relatively undervalued company with a 15.41x P/E as opposed to its sector median of 19.84x. However, analysts are already expecting recovery with a $3.56 billion revenue and $1.50 EPS target. As Textron continues to balance operational challenges with secular market shifts, investors should consider scooping up shares of this Nasdaq stock to buy before company makes its rebound.
GigaCloud Technology (GCT)
GigaCloud Technology (NASDAQ:GCT) is a company offering a technology-driven business-to-business platform that specializes in servicing large parcel e-commerce and retail customers. Despite nearly 400% price growth, Wall Street analysts’ one-year price target is $52.33 on average to a high of $69.
Gigacloud’s top-line results have largely been attributed to its commitment to accretive acquisitions and constant improvements in accelerating and strengthening its marketplace services. Currently, Gigacloud is integrating its Noblehouse and Wondersign acquisitions to create revenue synergies and more robust marketplace services. GCT’s addition of its new Branding-as-a-Service has also added to management’s optimism in amplifying GCT’s product’s competitiveness.
In GCT’s most recent earnings call, it saw TTM marketplace GMV increase by 64% YOY and total revenues nearly double. Surprisingly, GCT’s valuations have stayed quite discounted at a P/E ratio of 12.6x, compared to its sector median of 17.8x. For investors looking for some exposure to e-commerce, this should be a top pick from the Nasdaq stocks to buy.
Honeywell (HON)
Honeywell (NASDAQ:HON) is a diversified manufacturing and technology company that is focusing on automation, aerospace, and energy transition, as of recent. Yahoo! Finance reports that 16 analysts predict Honeywell’s one-year price range to fall between an average of $219 and a high of $250.
In the company’s recent earnings, HON saw a solid start to the year and exceeded its first-quarter EPS expectations. Management detailed that while long-term aerospace and energy businesses saw expected healthy organic growth. The short-cycle portfolio was also showing signs of recovery. Looking forward, the evolution of its Honeywell Accelerator will be one of the biggest growth drivers for HON, delivering incremental value and deploying world-class customer experiences.
Looking at the financials, we see that HON has leveraged AI to cut costs and maintain strong margins at 20%. Overall, while Honeywell’s P/E valuation sits at a more fair value that hovers around its sector median. Its dominance as a cheaper dividend growth company is bound to attract any investor looking to round out their portfolio.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (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.
