In this article, we will talk about the 10 most undervalued quality stocks to buy according to analysts.
Are More Rate Cuts Necessary to Maintain The Current Economic Trajectory?
Despite global uncertainties, the US economy is viewed as stronger than its international counterparts. But then again, market challenges are undeniably persisting, and strategists are inclining toward one opinion or the other to help investors build a stronger portfolio for the rest of the year.
In such volatility, quality stocks with reliable earnings offer potential opportunities for risk-averse investors. Interest rates are currently high, but there is potential for significant gains if they decline. As current economic indicators support a favorable environment for growth and income generation, we covered a conversation from CNBC in our 10 Best Quality Stocks to Buy According to Analysts article, where the Global Investment Strategist at ProShares Advisors, Simeon Hyman, emphasized ‘income’ as a key focus, highlighting that fixed-income markets could provide 10-15% returns if geopolitical tensions worsen. Here’s an excerpt from that article:
“…the yield on the 10-year bond is nearly 4%, and there is potential for it to drop to 3% or lower if significant negative events occur. This scenario presents an opportunity for investors to realize gains of 10% or 15% on bonds in a tumultuous environment, a situation not seen in over a decade.
Despite the current market being down by 3.7%, which is slightly less than 4%, Hyman insisted that rounding was at play… there has been a 50-basis point cut and indications of a soft landing for the economy. A month-over-month increase of just 0.1% suggests that if one can overlook geopolitical issues, the US economy is faring better than many others globally and remains on solid economic footing.”
Richard Fisher, Jefferies’ senior advisor, joined ‘Closing Bell’ on CNBC on October 1 to discuss the Fed’s recent rate cut and what it means for the market from here. The former Dallas Fed Chair Richard Fisher shared his insights on the current state of monetary policy and the Fed’s approach to interest rate cuts, noting that he was not surprised by Chair Powell’s signals indicating smaller rate cuts are forthcoming. Fisher explained that he had been bullish since the end of 2023, despite initially predicting a recession that did not materialize. He emphasized the importance of measured cuts, stating that the Fed is looking at monetary policy with a long-term perspective, roughly 18 months out.
He highlighted the significance of recent economic data, particularly from the Atlanta Fed, which indicates strong growth above 3%. Fisher characterized the current economic environment as experiencing neither a soft landing nor a hard landing, but rather a smooth glide path. He believes that two more quarter-point cuts would be appropriate to maintain this trajectory. When discussing concerns about whether current rates are too restrictive relative to inflation, Fisher disagreed with the argument and pointed out that financial conditions remain accommodative, citing narrow spreads and strong private lending activity. He argued that with another two cuts, the Fed would not be overly restrictive.
Despite acknowledging Powell’s effective leadership, Fisher maintained that it was premature to declare victory regarding economic stabilization. He believes Powell’s term will continue until April 2026, and only then can a true assessment of success be made. Overall, Fisher’s emphasis on measured rate cuts and ongoing economic strength underscores the delicate balance policymakers must maintain in fostering growth while managing inflationary pressures.
This could have a positive impact on the stock market, especially for undervalued quality stocks. When interest rates fall, investors often shift their focus to equities as they seek higher returns. This could lead to increased demand for undervalued quality stocks, potentially driving up their prices. In that context and given Fisher’s cautious optimism, we’re here with a list of the 10 most undervalued quality stocks to buy according to analysts.
Methodology
To compile our list, we first sifted through Vanguard U.S. Quality Factor ETF holdings to find the ones with an upside potential of over 15% as of October 7, 2024. We then selected stocks with a forward P/E ratio under 15 and made a list of 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of their analysts’ upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Most Undervalued Quality Stocks To Buy According To Analysts
10. Popular Inc. (NASDAQ:BPOP)
Average Upside Potential: 15.16%
Forward Price-to-Earnings Ratio: 9.45
Number of Hedge Fund Holders: 28
Popular Inc. (NASDAQ:BPOP) is a full-service financial services provider and one of the 50 largest US banks by assets. It’s primarily focused on serving the Hispanic market in the US and Puerto Rico, offering a range of financial products and services, including personal and commercial banking, mortgages, wealth management, and insurance.
The company’s Q2 2024 results were boosted by higher interest income and lower loan losses. Loan balances rose by $473 million, with Popular Inc. (NASDAQ:BPOP) leading growth by $509 million. Deposits increased by ~$1.7 billion, driven by Puerto Rico government funds. Net interest margin improved by 6 basis points to 3.22% due to higher loan balances and interest rates, partially offset by rising deposit costs.
Overall, the company’s revenue grew 6.14% in Q2. Noninterest income rose by $2 million. Credit quality improved with lower losses and bad loans. Consumer spending remained strong, with card sales up 5%. Tangible book value per share increased by $2.65. Auto loan and lease balances increased by $129 million due to strong demand for new cars. Mortgage loan balances rose by $107 million, driven by home purchases.
Business activity in Puerto Rico remained positive, with the tourism and hospitality sectors leading. Passenger traffic at San Juan airport increased by 8%, while hotel occupancy remained flat. US credit demand is lower than expected.
Popular Inc.’s (NASDAQ:BPOP) credit quality metrics have significantly improved compared to pre-pandemic levels, demonstrating the resilience of its loan book. The recent performance reinforces investor confidence and makes this one of the top stocks to consider.
9. Alkermes (NASDAQ:ALKS)
Average Upside Potential: 15.64%
Forward Price-to-Earnings Ratio: 13.48
Number of Hedge Fund Holders: 32
Alkermes (NASDAQ:ALKS) develops medicines to help people living with complex and difficult-to-treat psychiatric and neurological disorders. It’s a global biopharmaceutical company that focuses on developing and commercializing innovative medicines for patients with serious central nervous system diseases, specializing in therapies for addiction, schizophrenia, multiple sclerosis, and bipolar disorder.
For the second quarter of 2024, the company made $399.13 million in revenue, representing a 35.35% year-over-year decline. A lot of this quarter’s decline was offset by the proprietary product portfolio, which grew 16% year-over-year.
VIVITROL net sales increased by 9.6% year-over-year to $111.9 million. ARISTADA sales rose 4.3% to $86 million. LYBALVI sales surged 52% to $71.4 million due to strong demand. INVEGA revenues declined significantly to $78.7 million, primarily due to the absence of back royalties and related interest. VUMERITY sales increased by 9% to $35.2 million.
The decline in Q2 was driven by high R&D expenses. However, at the same time, R&D expenses decreased due to focused investments in neuroscience development programs, primarily related to the ALKS 2680 clinical program. Notably, INVEGA SUSTENNA royalties and net sales were to end in mid-August, impacting Q3 results by about $20 million. But the company continues to receive royalties from other INVEGA products.
Alkermes’ (NASDAQ:ALKS) focus on neuroscience development programs and the continued growth of its proprietary product portfolio demonstrates its potential for future success. The company’s strong product pipeline and ongoing R&D investments position it well for long-term growth.
8. DICK’S Sporting Goods Inc. (NYSE:DKS)
Average Upside Potential: 16.26%
Forward Price-to-Earnings Ratio: 14.75
Number of Hedge Fund Holders: 34
DICK’S Sporting Goods Inc. (NYSE:DKS) is the largest sporting goods retailer in the US, offering a variety of athletic equipment, apparel, and footwear for a variety of sports and activities. It is known for its extensive selection, competitive pricing, and excellent customer service. The company has 4 subsidiaries: Golf Galaxy, Public Lands, House of Sport, and Going Going Gone.
Sales during FQ2 2025 totaled $3.47 billion, growing 7.75% compared to the year-ago period. Comparable sales increased 4.5%, driven by growth in average tickets and transactions. Gross profit for the quarter was at $1.28 billion, representing 36.7% of net sales. These results were led by footwear and athletic apparel. The company saw more athletes purchase from their stores and digitally, and spend more than they did last year. A huge reason behind this was its Omnichannel athlete experience, which created a seamless buying experience for all customers.
The company is now investing heavily in both online and in-store experiences to make shopping easier and more engaging. This is being achieved through House of Sport and Field House, two innovative store concepts that offer a unique shopping experience with interactive features and strong partnerships with brands and communities.
DICK’S Sporting Goods Inc. (NYSE:DKS) focuses on offering trendy and differentiated products to maintain its position as a go-to destination for sports equipment. Additionally, it’s creating a positive work environment to attract and retain top talent and is investing in brand building through partnerships like Team USA and LA28. The company is confident in its strategies for continued growth, which positions it for long-term success.
Emeth Value Capital made the following comment about DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q2 2023 investor letter:
“For as often as the phrase “a private equity approach to public markets” is repeated, it is surprising to observe the great divide that exists between even very sophisticated long-term investors in public and private markets. There is perhaps no more well-trodden battleground than that of valuation marks. Public investors, particularly in times of market stress, are quick to express frustration that private equity portfolios are not marked to market. The title of Cliff Asness’ recent opinion piece in Institutional Investor captures the sentiment well, “Why Does Private Equity Get to Play Make-Believe With Prices?”. The level of discontent is surprising for two reasons: first, the difference in methodology is quite easily understood, and second, contrary to public markets gospel, it is evident that liquidity and the discovery of value are in no way synonymous. Indeed, they may be opposing forces more often than not. At the risk of oversimplifying, one can think of private equity marks as single-variable valuations, while public equity marks are dual-variable valuations. Both incorporate the level of earnings in a business, but while multiples are held relatively constant in private equity marks, public market marks also incorporate sentiment in the form of a changing multiple. The problem is that Mr. Market tends to change his opinion quite often. Consider the case of one of our former portfolio companies, DICK’S Sporting Goods, Inc. (NYSE:DKS)…” (Click here to read the full text)
7. SLM Corp. (NASDAQ:SLM)
Average Upside Potential: 16.43%
Forward Price-to-Earnings Ratio: 8.13
Number of Hedge Fund Holders: 24
SLM Corp. (NASDAQ:SLM) provides consumer banking. It was initially a government entity that serviced federal education loans, it then became private and began offering private student loans. Its loan products include undergraduate, graduate, and professional school loans. It also provides financial planning and counseling services to help borrowers manage their student loan debt.
Revenue decreased by 3.74% to $372.17 million in Q2 2024, despite improvements. The company still made $1.11 per share in this period. FAFSA completion rates were down, impacting enrollment. However, new enrollment is normalizing, and most borrowers have exited the extended grace program. Delinquencies are as expected, and loan modification programs have been successful.
At the same time, there were increased loan originations and improved credit quality. A gain of $112 million was realized from a loan sale. Borrower credit quality improved, and more borrowers are now using cosigners. Net charge-offs on private education loans decreased to 2.19%.
On September 25, the company contributed $200,000 to support HBCU Week college fairs, connecting students to resources and scholarships. It also announced a $1 million research endowment to Delaware State University and offers the Completing the Dream Scholarship to help students complete their education at HBCUs.
SLM Corp. (NASDAQ:SLM) has a strong financial position and is committed to returning value to shareholders. It has improved credit quality, effective loss mitigation programs, and a promising future.
6. Target Corp. (NYSE:TGT)
Average Upside Potential: 17.74%
Forward Price-to-Earnings Ratio: 14.6
Number of Hedge Fund Holders: 52
Target Corp. (NYSE:TGT) operates a chain of discount department stores and hypermarkets and is one of the largest American-owned private employers in the US. It offers products like clothing, electronics, home goods, and groceries, and is known for its convenient store locations, competitive prices, and a focus on providing a positive shopping experience. It also offers online shopping and in-store pickup options for added convenience.
Revenue increased by 2.75% in FQ2 2025, driven by increased traffic. The company earned $2.57 per share in this quarter. Digital sales, particularly same-day services like Target Circle 360 and Drive Up, grew significantly. These services contribute most of digital sales and give the company an advantage. Drive Up sales exceeded $2 billion in Q2 and $4 billion for the year. Clothing sales increased by 3%.
Target Circle gained 2 million new members, reaching 100 million total members. A July promotion added many new cardholders and Target Circle 360 members. Target Corp. (NYSE:TGT) donated $2.5 million to disaster relief efforts, including support for the Red Cross and Team Rubicon after Hurricane Beryl.
Earlier this year, the company integrated GenAI into the handheld devices in its stores, providing its team with rapid access to best practice documentation and the ability to quickly receive straightforward responses to common customer questions. It recently released its 2024 Bullseye’s Top Toys list, featuring over 60 must-have items, many exclusive to Target Corp. (NYSE:TGT).
While the ongoing port strike presents challenges for many retailers, particularly those with a high reliance on imported goods, the potential for increased market share and pricing power for domestically focused businesses presents a bullish opportunity. The potential for price hikes due to the strike could benefit retailers with pricing flexibility and the ability to maintain margins.
Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter.”
5. Mattel Inc. (NASDAQ:MAT)
Average Upside Potential: 19.42%
Forward Price-to-Earnings Ratio: 12.42
Number of Hedge Fund Holders: 31
Mattel Inc. (NASDAQ:MAT) is a multinational toy manufacturing and entertainment company known for its iconic brands such as Barbie, Hot Wheels, Fisher-Price, and American Girl. It designs, manufactures, and distributes a variety of toys and games for children of all ages. Its focus on innovation and storytelling has helped it maintain its position as a leading toy company.
In the second quarter of 2024, the company’s revenue declined by 0.69% year-over-year. Gross billings declined 2%, with growth in APAC offsetting declines in other regions. At the same time, the company gained market share globally, with strong performance in dolls, vehicles, and infant toys. Free cash flow increased to $826 million, and it repurchased $200 million of shares.
Segment-wise, however, doll sales declined, while vehicle sales increased. Fisher-Price grew double-digits, and the company gained market share in games. Mattel Creations, the D2C channel, continued to grow. It’s expanding its entertainment offerings with films, television shows, and digital gaming. The company expects the toy industry to decline modestly in 2024.
The company is focusing on growing its IP-driven toy business and expanding its entertainment offerings. It aims to increase profitability, gross margin, and cash generation. It expects long-term growth driven by innovation, market share gains, entertainment success, operational efficiencies, and a strong balance sheet. All of these factors make Mattel Inc. (NASDAQ:MAT) a top investment opportunity.
Longleaf Partners Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its Q2 2024 investor letter:
“Mattel, Inc. (NASDAQ:MAT)– Global toy and media company Mattel detracted for the quarter. The company reported what we viewed as solid quarterly results and an affirmation of 2024 guidance. We were particularly encouraged by their decision to increase their share repurchase program, which positions them well for FCF per share growth. As the quarter went on, however, the market focused on weaker consumer purchasing trends impacting Mattel and its peers. The market also seems to have moved past the success of last year’s Barbie movie, but we believe there is significant upside from media and entertainment revenue streams that are not yet reflected in today’s earnings expectations.”
4. WSFS Financial Corp. (NASDAQ:WSFS)
Average Upside Potential: 19.99%
Forward Price-to-Earnings Ratio: 11.05
Number of Hedge Fund Holders: 10
WSFS Financial Corp. (NASDAQ:WSFS) is a savings and loan holding company. It operates through its subsidiary, WSFS Bank, which provides many financial products and services like personal and commercial banking, wealth management, and insurance. It is known for its strong community focus and commitment to providing personalized service.
Core earnings per share were $1.08, with core return on assets at 1.25% and core return on tangible common equity at 18.83% in Q2 2024. Revenue grew 6.97% year-over-year in this quarter. Core fee revenue grew 28% year-over-year, driven by strong performance across all major fee businesses, particularly in Wealth Management and Cash Connect. Wealth Management fee revenue grew 16%. Cash Connect added ~8,000 ATMs and increased ROA to 1.72%. Capital markets and mortgage businesses increased fee revenue by 13% and 35%, respectively.
WSFS Financial Corp. (NASDAQ:WSFS) is now focused on strategic investments, including expanding Cash Connect capabilities and growing Wealth Management services. It is committed to maintaining stable asset quality and returning a significant portion of its net income to shareholders through dividends and stock buybacks.
The company’s strong financial performance, coupled with its commitment to shareholder returns and strategic focus, positions it for continued success. Its ability to maintain a healthy balance sheet and generate consistent earnings, even in a challenging economic environment, demonstrates its resilience and long-term growth potential, making it a great investment opportunity.
Here is what Clearbridge Investments Small Cap Strategy has to say about WSFS Financial Corporation (NASDAQ:WSFS) in its Q1 2022 investor letter:
“We also initiated a new position in WSFS Financial (NASDAQ:WSFS), in the financials sector. A savings and loan company, WSFS Financial provides various banking services including savings accounts, loans and consumer credit products. The company has made several acquisitions in recent years that have brought it into higher growth markets such as Washington DC and provided good cost savings. We believe it is well-positioned to maintain good loan growth, despite interest rate headwinds.”
3. Axos Financial Inc. (NYSE:AX)
Average Upside Potential: 25.87%
Forward Price-to-Earnings Ratio: 8.64
Number of Hedge Fund Holders: 25
Axos Financial Inc. (NYSE:AX) is a digital bank that offers a range of financial products and services, including personal and business banking, mortgages, and wealth management. It is known for its online-only approach, which allows it to offer competitive rates and fees. It also focuses on providing excellent customer service through its digital channels.
In FQ4 2024, the company showed strong financial performance, reporting a 20% increase in net income to ~$105 million and earnings per share of $1.80, marking a 51% year-over-year growth. Ending loan balances rose by 2.7% linked quarter and 16.9% year-over-year, reaching $19.2 billion. The overall revenue grew by 23.03% in this quarter.
Deposits increased by about $256 million, primarily from non-interest-bearing sources, contributing to a 26% growth in tangible book value per share. The net interest margin was reported at 4.65%, up 46 basis points from the previous year but down from the prior quarter due to higher excess liquidity.
The company maintained strong credit quality, with net annualized charge-offs at just 5 basis points and non-performing loans decreasing by $9 million sequentially. It continues to focus on diversifying its lending and deposit businesses, with ongoing investments in technology and operational improvements aimed at enhancing customer experience and driving future growth. These factors come together to make Axos Financial Inc. (NYSE:AX) well-positioned for success.
Gator Capital Management made the following comment about Axos Financial, Inc. (NYSE:AX) in its first quarter 2023 investor letter:
“A second but higher risk opportunity is in select regional banks. Coming into March, regional banks were already at the low end of their long-term valuation range. In March, the regional bank index declined 29%, and many well-run regional banks declined more than the index. We admit there are many new negatives for regional banks in the aftermath of the Bank Crisis. Still, we think they have become too cheap and have the potential to outperform as we get clarity on the going forward business model.
We see four new negatives for regional banks: 1) uninsured deposits will decline unless deposit insurance limits are increased, 2) banks will operate with higher liquidity going forward, 3) deposit repricing is accelerating, and 4) regulatory uncertainty is high.
Despite these four new negative issues for banks, we believe regional bank stock prices have overshot to the downside. We estimate these four issues will cause a 10% decline in earnings, which is not bad compared to a 30% decline in stock prices. We believe the banks will be able to overcome some of these negatives with wider spreads on loans going forward. We believe we must focus on the best management teams that have shown the ability to grow while maintaining discipline on expenses.
Some banks we have identified include Axos Financial, Inc. (NYSE:AX), United Missouri Bank, Webster Financial, and Pinnacle Financial. These banks are strong performers and don’t have the same problems that SIVB and others had with their bond portfolios. These banks have strong deposit franchises and have posted strong loan growth for many years. We believe they will be able to balance the demands of the new banking environment and post strong results.”
2. Merck & Co. Inc. (NYSE:MRK)
Average Upside Potential: 27.54%
Forward Price-to-Earnings Ratio: 10.96
Number of Hedge Fund Holders: 96
Merck & Co. Inc. (NYSE:MRK) is a global healthcare company that delivers innovative health solutions through its prescription medicines, vaccines, biological therapies, and animal health products. It has a strong focus on research and development, and its products are used to treat a wide range of diseases, including cancer, infections, and cardiovascular disorders.
Earlier this year, its revenue grew 7.16% in Q2 2024, driven by growth in all business segments. Human Health grew 11%, Animal Health grew 6%, and KEYTRUDA sales rose 21%. Vaccines like GARDASIL and VAXNEUVANCE grew by 4% and 16%, respectively. However, the expiration of KEYTRUDA’s patent in 2028 could impact future growth.
It received FDA approval and ACIP recommendation for its new pneumococcal conjugate vaccine, CAPVAXIVE, for adults. The WINREVAIR vaccine for adult patients with pulmonary arterial hypertension was also approved and generated $70 million+ in sales during the quarter. The company acquired Elanco’s aqua business to become a leader in animal health and acquired EyeBio in July to enter the ophthalmology market and develop treatments for retinal conditions.
On October 1, the company completed the acquisition of CN201, a bispecific antibody for the treatment of B-cell-associated diseases. CN201 is currently being investigated in clinical trials for NHL and ALL. Merck & Co. Inc. (NYSE:MRK) recorded a pre-tax charge of ~$750 million related to the acquisition, which will be included in Q3 non-GAAP results.
It’s poised for continued growth due to its international expansion, diverse drug portfolio, and strong financial results. The acquisition of Harpoon Therapeutics is expected to strengthen its oncology pipeline and create opportunities for new combination therapies. Hence, Merck & Co. Inc. (NYSE:MRK) is rather well-positioned for success.
Carillon Eagle Growth & Income Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its first quarter 2024 investor letter:
“After posting lackluster returns in 2023, Merck & Co., Inc. (NYSE:MRK) got off to a strong start in January by raising the long-term sales forecasts for its oncology and cardiology pipelines and reporting solid fourth-quarter results, coupled with strong financial guidance for 2024. Merck shares also finished the quarter strong after receiving U.S. Food and Drug Administration approval in late March for a new cardiology medicine with the potential to contribute significantly to sales growth over the next several years.”
1. Lantheus Holdings (NASDAQ:LNTH)
Average Upside Potential: 34.53%
Forward Price-to-Earnings Ratio: 1.45
Number of Hedge Fund Holders: 34
Lantheus Holdings (NASDAQ:LNTH) is a global leader in the development, manufacture, and commercialization of innovative diagnostic imaging agents and products. Its products are used to help healthcare professionals diagnose and monitor a variety of diseases, including cancer, heart disease, and brain disorders. It’s focused on developing innovative products and expanding its global reach.
Since the beginning of 2024, the company’s products have positively impacted over 3.4 million patients and their families. It’s expanding its pipeline with late and early-stage assets, including NAV-4694, a next-generation F18 PET imaging agent candidate targeting Alzheimer’s disease. It also acquired MK-6240, another Alzheimer’s disease diagnostic candidate.
The company acquired the global rights to Life Molecular Imaging’s RM2 clinical-stage radio diagnostic and radiotherapeutic pair, targeting the gastrin-releasing peptide receptor. It’s overexpressed in prostate cancer cells, making RM2 a potential diagnostic tool for earlier stages of the disease. Management plans to initiate a Phase I/IIa prostate cancer study with Life Molecular.
It also licensed two product candidates from Radiopharm Theranostics, including an LRRC15-targeted monoclonal antibody and a TROP2-targeted nanobody radioconjugate. These candidates have potential applications in various cancers.
Revenue made in Q2 2024 was $349.09 million, up 22.50% year-over-year. PYLARIFY sales grew 30%, driven by increased awareness and adoption. PYLARIFY is the leading PSMA PET imaging agent. DEFINITY sales increased 11%, driven by its clinical and commercial value proposition.
Lantheus Holdings (NASDAQ:LNTH) is committed to advancing innovation and delivering better patient outcomes, making it a great investment opportunity.
ClearBridge Small Cap Value Strategy stated the following regarding Lantheus Holdings, Inc. (NASDAQ:LNTH) in its Q2 2024 investor letter:
“Health care results lifted relative performance during the period and included our top two individual performers in Lantheus and newer portfolio addition Corcept Therapeutics. Lantheus Holdings, Inc. (NASDAQ:LNTH), which makes diagnostic and therapeutic products that help clinicians diagnose and treat heart, cancer and other diseases, saw its share price rise on strong first-quarter results.”
While we acknowledge the growth potential of Lantheus Holdings (NASDAQ:LNTH), 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 LNTH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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