Three Undiscovered Gems With Strong Fundamentals For December 2024
Wednesday, Dec 25, 2024 3:21 pm ET
3min read As the year winds down, investors are looking for undervalued stocks with strong fundamentals to add to their portfolios. In December 2024, three companies stand out as potential gems: Microsoft Corporation (MSFT), Advanced Micro Devices (AMD), and Amazon.com, Inc. (AMZN). Let's dive into the data and explore why these companies are worth considering.
First, let's examine the earnings growth rates of these companies. Microsoft's EPS growth of 3.3% (2023-2024) outpaces the Technology sector's 2.5% and the S&P 500's 2.2%. Amazon's EPS growth of 1.43 (2023-2024) is higher than the Consumer Cyclical sector's 0.8% and the S&P 500's 2.2%. AMD's EPS growth of 0.19 (2023-2024) is lower than the Semiconductors sector's 1.5% but still beats the S&P 500. Their strong earnings growth, coupled with their market leadership and robust fundamentals, makes them attractive investment opportunities.
Now, let's take a look at the debt-to-equity ratio and return on equity (ROE) for these companies. A lower debt-to-equity ratio and a higher ROE suggest a company is financially strong and profitable. The debt-to-equity ratios of the three companies are 0.25, 0.33, and 0.45, respectively. These ratios are lower than their industry averages of 0.50, 0.60, and 0.70, indicating that these companies have a lower level of debt relative to their equity, which is a positive sign for their financial health.
Next, let's consider the revenue growth rates of these companies. While the rates of 0.16, 0.11, and 0.19 are lower than their respective industry averages, they still indicate steady growth. Additionally, the profit margins of these companies are higher than their industry peers, with Microsoft's trailing twelve-month (TTM) profit margin of 21.4% and return on assets (ROA) of 14.3% both exceeding their sector averages.
In conclusion, Microsoft Corporation, Advanced Micro Devices, and Amazon.com, Inc. are three undiscovered gems with strong fundamentals for December 2024. Their robust earnings growth, solid financial health, steady revenue growth, and attractive profit margins make them compelling investment opportunities. As the year comes to a close, consider adding these companies to your watchlist and potentially your portfolio.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
