10 Cheap New Stocks To Buy Right Now

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1. Solventum Corp. (NYSE:SOLV)

Number of Hedge Fund Holders: 48

Forward P/E ratio as of January 25: 13.16

Market Capitalization: $12.96 billion

Solventum Corp. (NYSE:SOLV) is a healthcare company that develops and delivers innovative solutions across a diverse portfolio. It operates in Medsurg, Dental Solutions, Health Information Systems, and Purification & Filtration. It addresses patient care, clinical workflows, and healthcare operations.

The company has historically underperformed its markets, with flat or declining volumes over the past 2 years. This comes from commercial misalignment and poor R&D productivity. To address these challenges, Solventum Corp. (NYSE:SOLV) has implemented a 3-phased approach. The company will first identify and prioritize high-growth markets and submarkets through market analysis. Then, it will align its commercial and R&D efforts with these priorities. This includes specializing sales teams, adjusting incentives, and shifting R&D focus towards target markets. Finally, it will pursue portfolio optimization through inorganic growth, potentially acquiring smaller companies or technologies.

The company’s financial outlook for 2024 reflects these growth initiatives as it raised its organic sales growth guidance to 0-1% and expects adjusted earnings per share to be between $6.30 and $6.50. The company also anticipates free cash flow in the range of $700 million to $800 million. Solventum Corp.’s (NYSE:SOLV) success hinges on its ability to successfully execute Phase 2 of its transformation plan.

While we acknowledge the growth potential of Solventum Corp. (NYSE:SOLV), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOLV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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