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13 NASDAQ Stocks with Lowest PE Ratios That May Not Be Value Traps

In this piece, we will take a look at the 13 NASDAQ stocks with lowest PE ratios. If you want to skip our primer on one of the best performing U.S. stock exchanges this year, then take a look at 5 NASDAQ Stocks With Lowest PE Ratios.

If there’s one thing that can be said with certainty about the stock market this year, it’s that the NASDAQ index has defied expectations. Led by the surge in mega cap technology stocks, the NASDAQ 100 has delivered 45% returns in the first half of this year and 36.4% year to date after it pared off some of the gains during the third quarter.

The surge in the stocks has come as the market not only becomes quite optimistic about artificial intelligence but also because the U.S. economy has defied investor expectations of a recession and managed to grow during the second quarter. When it comes to AI, the NASDAQ is the index to invest in, as nearly all of the biggest beneficiaries of the new technology such as NVIDIA Corporation (NASDAQ:NVDA) and Microsoft Corporation (NASDAQ:MSFT) are traded on the index.

And while Microsoft has an edge in AI due to its partnership with ChatGPT and the strength of the Azure platform, NVIDIA is a company that is indispensable. This is because NVIDIA’s graphics processing units (GPUs) are the best of their kind in the industry and the company is also able to ensure a stable supply of the products to companies that are eager to make the AI transformation. These abilities have changed the narrative around NVIDIA this year, as the firm’s earnings results for the second quarter of its fiscal year 2024 saw it report unbelievable revenue and earnings figures which blew analyst estimates not only out of the park but maybe even to space. For its Q2, NVIDIA reported $13.51 billion in revenue, which doubled its year ago figures of $6.7 billion and marked an 88% sequential growth during a time when the chip sector as a whole is undergoing a downturn due to inventory problems. At the same time, NVIDIA was quick to guide an equally strong financial scorecard for its current quarter as the firm expects to bring in $16 billion in revenue to mark 170% revenue growth – a figure that should assuage some nervousness in the market about the firm’s ability to sustain the demand for its AI products.

The main reason that NVIDIA is now flying to new heights is its data center division – which includes revenue from the AI products. On this front, the company has partnered up with some of the enterprise computing industry’s biggest players. This list includes big ticket and blue chip names such as ServiceNow, Inc. (NYSE:NOW), Accenture plc (NYSE:ACN), Snowflake Inc. (NYSE:SNOW), and VMware, Inc. (NYSE:VMW). NVIDIA’s partnership with Accenture and ServiceNow aims to develop a unique platform that is capable of helping business users develop artificial intelligence models to upgrade their capabilities and boost their productivity. Its partnership with Snowflake follows similar principles since it aims to leverage NVIDIA’s generative AI development framework called NeMo to enable business customers to use their own data to create large language models for purposes such as search databases and customer support.

Building these partnerships requires remarkably complex products, and NVIDIA’s chief financial officer Ms. Collette Kress shared some of this complexity during the firm’s latest earnings call where she explained:

There is tremendous demand for NVIDIA accelerated computing and AI platforms. Our supply partners have been exceptional in ramping capacity to support our needs. Our data center supply chain, including HGX with 35,000 parts and highly complex networking has been built up over the past decade. We have also developed and qualified additional capacity and suppliers for key steps in the manufacturing process such as [indiscernible] packaging. We expect supply to increase each quarter through next year. By geography, data center growth was strongest in the U.S. as customers direct their capital investments to AI and accelerated computing. China demand was within the historical range of 20% to 25% of our Data Center revenue, including compute and networking solutions.

However, while NVIDIA is probably the most talked about NASDAQ stock right now, it’s far from being the index’s best performer. In fact, when you look at some of the best performing NASDAQ stocks this year, you discover that their year to date gains literally leave the GPU manufacturer in the dust. Don’t believe us? Consider the fact that shares of American Coastal Insurance Corporation (NASDAQ:ACIC) are up by a stunning 629% year to date, while NASDAQ stock Applied Optoelectronics, Inc. (NASDAQ:AAOI) 591% year to date. Both of these are small cap stocks, and their share price appreciation shows how rapidly such stocks can yield returns. For more such stocks, you can check out 15 Most Profitable Small-Cap Stocks Now.

So, NVIDIA’s great for now and small cap NASDAQ stocks have posted strong returns this year. But the NASDAQ is made up of thousands of stocks, and today we’ve taken a look at some NASDAQ stocks with low price to earnings ratios. Some of the top 5 stocks with the lowest PE ratios are Chesapeake Energy Corporation (NASDAQ:CHK), Chord Energy Corporation (NASDAQ:CHRD), and First Citizens BancShares, Inc. (NASDAQ:FCNCA).

Pixabay/Public Domain

Our Methodology

To compile our list of NASDAQ stocks with low PE ratios, we first compiled a list of 40 NASDAQ listed firms with a price to trailing earnings ratio lower than 15 and a market capitalization greater than $300 million. Then, the number of hedge funds out of the 910 part of Insider Monkey’s database that had held a stake in them during Q2 2023 was determined, and the firms with the highest hedge fund investors were selected.

13 NASDAQ Stocks With Lowest PE Ratios

13. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA)

Number of Hedge Fund Investors In Q2 2023: 20

Latest P/E Ratio: 5.39

Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) is a biotechnology company that develops treatments for heart diseases, skin conditions, and other ailments. It marks a strong start to our list, as the shares are rated Strong Buy on average. Analysts have also penned in a nearly $8 share price upside to the stock based on the average share price target.

Insider Monkey’s June quarter of 2023 survey covering 910 hedge funds revealed that 20 had invested in Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA). David Rosen’s Rubric Capital Management is the firm’s biggest hedge fund shareholder through a stake worth $47.5 million.

Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) joins Chord Energy Corporation (NASDAQ:CHRD), Chesapeake Energy Corporation (NASDAQ:CHK), and First Citizens BancShares, Inc. (NASDAQ:FCNCA) in our list of the NASDAQ stocks with low price to earnings ratios.

12. Popular, Inc. (NASDAQ:BPOP)

Number of Hedge Fund Investors In Q2 2023: 20

Latest P/E Ratio: 4.77

Popular, Inc. (NASDAQ:BPOP) is a Puerto Rico based bank with a presence in its home region and the U.S. Despite turmoil in the regional banking sector, the firm has beaten analyst EPS estimates for all four of its latest quarters and the stock is down just 1.14% year to date.

During this year’s second quarter, 20 out of the 910 hedge funds polled by Insider Monkey had held a stake in the bank. Popular, Inc. (NASDAQ:BPOP)’s largest investor among these is Bernard Horn’s Polaris Capital Management since it owns 2.5 million shares that are worth $155 million.

11. Vodafone Group Public Limited Company (NASDAQ:VOD)

Number of Hedge Fund Investors In Q2 2023: 21

Latest P/E Ratio: 1.94

Vodafone Group Public Limited Company (NASDAQ:VOD) is a telecommunications carrier headquartered in Newbury, the United Kingdom. It is another stock that is rated Strong Buy on average and high inflation in the U.K. has enabled the firm to grow its sales even as users drop.

As of June 2023, 21 of the 910 hedge funds surveyed by Insider Monkey had bought and invested in Vodafone Group Public Limited Company (NASDAQ:VOD)’s stock. Jim Simons’ Renaissance Technologies owns the most valuable stake among these, which was last valued at $144 million.

10. Zymeworks Inc. (NASDAQ:ZYME)

Number of Hedge Fund Investors In Q2 2023: 22

Latest P/E Ratio: 2.74

Zymeworks Inc. (NASDAQ:ZYME) is a Canadian biotechnology company that develops cancer treatments. The firm’s second quarter earnings report saw it cut its net loss by 45% and report $431 million in cash reserves.

During this year’s second quarter, 22 out of the 910 hedge funds part of Insider Monkey’s research owned a stake in Zymeworks Inc. (NASDAQ:ZYME).

Zymeworks Inc. (NASDAQ:ZYME), Chord Energy Corporation (NASDAQ:CHRD), Chesapeake Energy Corporation (NASDAQ:CHK), and First Citizens BancShares, Inc. (NASDAQ:FCNCA) are some NASDAQ stocks with low price to earnings ratios.

9. PENN Entertainment, Inc. (NASDAQ:PENN)

Number of Hedge Fund Investors In Q2 2023: 23

Latest P/E Ratio: 5.3

PENN Entertainment, Inc. (NASDAQ:PENN) is a gaming company that provides an online betting platform. The firm is currently part of Disney’s strategy to revamp its ESPN platform as it has partnered up with ESPN to operate the ESPN Bet platform.

After digging through 910 hedge funds for their June quarter of 2023 shareholdings, Insider Monkey discovered that 23 had invested in the company. PENN Entertainment, Inc. (NASDAQ:PENN)’s largest hedge fund investor is Parag Vora’s HG Vora Capital Management through a $348 million investment.

8. Cal-Maine Foods, Inc. (NASDAQ:CALM)

Number of Hedge Fund Investors In Q2 2023: 26

Latest P/E Ratio: 3.03

Cal-Maine Foods, Inc. (NASDAQ:CALM) is an egg company that is headquartered in Ridgeland, Mississippi. The firm’s second quarter earnings saw it mark a whopping 575% increase in operating income as record high egg prices led to more dollar sales.

Insider Monkey dug through 910 hedge fund portfolios for this year’s second quarter and found 26 Cal-Maine Foods, Inc. (NASDAQ:CALM) shareholders. Its biggest shareholder in our database is Jim Simon’s Renaissance Technologies since it owns 1.6 million shares that are worth $74.4 million.

7. Encore Wire Corporation (NASDAQ:WIRE)

Number of Hedge Fund Investors In Q2 2023: 27

Latest P/E Ratio: 5.22

Encore Wire Corporation (NASDAQ:WIRE) is an American firm that sells electrical products to industries. Out of its four latest fiscal quarters, the firm has beaten analyst EPS estimates in three and the shares are rated Strong Buy on average.

As of June 2023, 27 out of the 910 hedge funds profiled by Insider Monkey had bought the firm’s shares. Encore Wire Corporation (NASDAQ:WIRE)’s largest investor is Chuck Royce’s Royce & Associates through a stake worth $70.5 million.

6. Avis Budget Group, Inc. (NASDAQ:CAR)

Number of Hedge Fund Investors In Q2 2023: 31

Latest P/E Ratio: 4.53

Avis Budget Group, Inc. (NASDAQ:CAR) provides cars, trucks, and other vehicles for rent in several countries. The firm was fined by the New York government in August after it refused to provide vehicles to people without credit cards

31 out of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had invested in Avis Budget Group, Inc. (NASDAQ:CAR). Out of these, the biggest shareholder is Karthik Sarma’s SRS Investment Management courtesy of its $4.2 billion investment.

Chesapeake Energy Corporation (NASDAQ:CHK), Avis Budget Group, Inc. (NASDAQ:CAR), Chord Energy Corporation (NASDAQ:CHRD), and First Citizens BancShares, Inc. (NASDAQ:FCNCA) are NASDAQ stocks with low price to earnings ratios and strong high hedge fund sentiment.

Click to continue reading and see 5 NASDAQ Stocks With Lowest PE Ratios.

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Disclosure: None. 13 NASDAQ Stocks With Lowest PE Ratios is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…