10 Undervalued Stocks with the Highest Upside Potential

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1. Power Solutions International, Inc. (NASDAQ:PSIX)

Forward P/E Ratio: 10.60x

Upside Potential: 100%

Number of Hedge Fund Holders: 7

Power Solutions International, Inc. (NASDAQ:PSIX) is a NASDAQ-listed corporation that specializes in designing, engineering, and producing emission-certified power systems and engines. They produce products that are engineered for a variety of industries such as industrial power generation and transportation and are designed for use in alternative-fueled power systems that are powered by natural gas, propane, and gasoline.

Power Solutions International, Inc. (NASDAQ:PSIX) reported Q3 2024 net income of $17.3 million, a 122% net income improvement compared with last year’s comparable quarter. Gross margin of 28.9% was a 4.8 point improvement compared with last year. Diluted EPS of $0.75 was a $0.41 improvement compared with last year.

The company has been actively growing its capital base and expanding its market presence. Power Solutions International, Inc. (NASDAQ:PSIX) made a new uncommitted senior secured revolving credit agreement with lenders and Standard Chartered Bank in September 2024 in an attempt to enhance its financing flexibility.

Analysts are bullish on Power Solutions International, Inc.’s (NASDAQ:PSIX) outlook. The stock has a consensus target price of $55, a 100% gain from where it currently stands at $27.45.

While we acknowledge the potential of PSIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSIX 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 30 Best Stocks to Buy Now According to Billionaires

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