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

Published on August 27, 2023 at 8:40 am by Ramish Cheema in Hedge Funds, News

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.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

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!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

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.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

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…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up