Have $500? These 2 Stocks Could Be Bargain Buys for 2024 and Beyond
Wednesday, Nov 6, 2024 4:50 am ET
2min read MU --
VZ --
Investing $500 in bargain stocks can set you up for long-term gains. Two undervalued stocks with strong growth prospects are Micron Technology (MU) and Verizon Communications (VZ). Micron, a leader in memory and storage solutions, benefits from growing demand for AI infrastructure, which requires more memory and storage. Its cyclical nature makes it a timely buy, with profits on the upswing due to supply constraints. Verizon, a telecommunications giant, is expanding its fiber and broadband services through its acquisition of Frontier Communications. Its high dividend yield and growing wireless revenue make it an attractive choice for investors seeking income and growth. Both stocks are undervalued compared to their peers, offering potential for significant returns in 2024 and beyond.
Investing in stocks with strong fundamentals and long-term growth potential is crucial for building wealth. Two stocks that could be bargain buys for 2024 and beyond are Micron Technology (MU) and Verizon Communications (VZ). These companies operate in sectors that are expected to grow, and their financial metrics indicate strong long-term growth potential.
Micron Technology is a leader in memory and storage solutions, with a focus on the data center market. The company's revenue jumped 93% year over year in its most recent quarter, and it expects record revenue over the next year. Wall Street analysts expect Micron's earnings per share to reach $10.96 by fiscal 2027, which is a significant increase from its current share price. The company's strong competitive positioning and the growing demand for advanced memory products make it an attractive investment.
Verizon Communications is a telecommunications company that is expected to benefit from growing wireless revenue and 5G adoption. The company's postpaid phone net additions doubled in the third quarter of 2024, and it maintained low customer churn, indicating a strong competitive offering. Verizon is also expanding its fiber and broadband services through its pending acquisition of Frontier Communications. The company's pending acquisition and its strong fundamentals make it a promising investment opportunity.
Both Micron Technology and Verizon Communications have strong financial metrics that indicate long-term growth potential. Their valuations are also attractive, with Micron trading at less than 10 times forward earnings and Verizon trading at a forward dividend yield of 6.48%. These stocks could be bargain buys for investors looking for long-term growth potential.
Micron Technology and Verizon Communications both offer attractive dividend yields and sustainable payout ratios. Micron's 3.70% dividend yield is higher than the 1.86% average for the S&P 500 Information Technology sector, while Verizon's 0.49% yield is in line with the 0.49% average for the Communication Services sector. Both companies have payout ratios below 1, indicating that their dividends are covered by earnings. Micron's payout ratio of 0.60 is lower than the sector average of 1.15, and Verizon's payout ratio of 0.64 is lower than the sector average of 0.71. These metrics suggest that both stocks offer a combination of attractive income and potential for capital appreciation.
In conclusion, investing in bargain stocks like Micron Technology and Verizon Communications can provide long-term growth potential and attractive income. With strong financial metrics and undervalued valuations, these stocks are well-positioned for success in 2024 and beyond. By focusing on income-focused investments and capitalizing on market opportunities, investors can secure steady returns and build wealth over time.
Investing in stocks with strong fundamentals and long-term growth potential is crucial for building wealth. Two stocks that could be bargain buys for 2024 and beyond are Micron Technology (MU) and Verizon Communications (VZ). These companies operate in sectors that are expected to grow, and their financial metrics indicate strong long-term growth potential.
Micron Technology is a leader in memory and storage solutions, with a focus on the data center market. The company's revenue jumped 93% year over year in its most recent quarter, and it expects record revenue over the next year. Wall Street analysts expect Micron's earnings per share to reach $10.96 by fiscal 2027, which is a significant increase from its current share price. The company's strong competitive positioning and the growing demand for advanced memory products make it an attractive investment.
Verizon Communications is a telecommunications company that is expected to benefit from growing wireless revenue and 5G adoption. The company's postpaid phone net additions doubled in the third quarter of 2024, and it maintained low customer churn, indicating a strong competitive offering. Verizon is also expanding its fiber and broadband services through its pending acquisition of Frontier Communications. The company's pending acquisition and its strong fundamentals make it a promising investment opportunity.
Both Micron Technology and Verizon Communications have strong financial metrics that indicate long-term growth potential. Their valuations are also attractive, with Micron trading at less than 10 times forward earnings and Verizon trading at a forward dividend yield of 6.48%. These stocks could be bargain buys for investors looking for long-term growth potential.
Micron Technology and Verizon Communications both offer attractive dividend yields and sustainable payout ratios. Micron's 3.70% dividend yield is higher than the 1.86% average for the S&P 500 Information Technology sector, while Verizon's 0.49% yield is in line with the 0.49% average for the Communication Services sector. Both companies have payout ratios below 1, indicating that their dividends are covered by earnings. Micron's payout ratio of 0.60 is lower than the sector average of 1.15, and Verizon's payout ratio of 0.64 is lower than the sector average of 0.71. These metrics suggest that both stocks offer a combination of attractive income and potential for capital appreciation.
In conclusion, investing in bargain stocks like Micron Technology and Verizon Communications can provide long-term growth potential and attractive income. With strong financial metrics and undervalued valuations, these stocks are well-positioned for success in 2024 and beyond. By focusing on income-focused investments and capitalizing on market opportunities, investors can secure steady returns and build wealth over time.