10 Worst Affordable Stocks To Buy Right Now

5. Super Micro Computer, Inc. (NASDAQ:SMCI)

Forward P/E Ratio: 13.59

Earnings Growth This Year: 54.30%

Number of Hedge Fund Holders: 47

Short % of Shares Outstanding: 14.96%

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the prominent players in a swiftly growing data center industry. The company offers a wide range of high-performance servers and storage solutions. Its solutions are used in various high-growth industries such as data centers, cloud computing, artificial intelligence, 5G networking, and edge computing.

Moreover, it is differentiated due to its cutting-edge direct liquid cooling technology that solves one of the major issues of high energy consumption in the data centers and AI market. The short interest of 14.96% as a percentage of shares outstanding makes Super Micro Computer, Inc. (NASDAQ:SMCI) one of the worst affordable stocks to buy right now. Its financial performance says otherwise.

The strong demand from AI customers resulted in the company delivering record sales in a single quarter that surpassed its full-year performance in 2021. The revenue for the fiscal fourth quarter of 2024 improved more than 143% year-over-year, to deliver $5.3 billion during the quarter.

Super Micro Computer, Inc. (NASDAQ:SMCI) also achieved significant milestones during the quarter. It became the first to market 8U AI NVIDIA H100 Liquid Cooled Clusters. Moreover, the company is also developing  Supermicro 4.0 DCBBS, a data center building block solution that will significantly reduce the time to build new data centers for its customers.

Stated that the company operates in a series of high-growth markets and its products go hand in hand with tech giants such as NVIDIA, the future of the company looks bright. Management has also raised their next quarter revenue guidance and now expects revenue growth between 183% and 230%.

Lastly, its cheap valuation also aids the bull case thesis for Super Micro Computer, Inc. (NASDAQ:SMCI). The stock is trading at 14 times its forward earnings while the market average sits at 23. Its earnings are also expected to grow by 54% during the year to reach $34.09. SMCI was held by 47 hedge funds in Q2 2024, with total positions worth $1.46 billion.

Diamond Hill Small Cap Fund stated the following regarding Bank OZK (NASDAQ:OZK) in its first quarter 2024 investor letter:

“Our bottom individual contributors in Q1 included WNS Holdings, as well as regional banks Live Oak Bancshares and Bank OZK (NASDAQ:OZK). Shares of regional banks Live Oak Bancshares and Bank OZK consolidated some of late 2023’s gains tied to investors’ expectations the Fed would begin cutting rates in 2024 — which would relieve deposit pricing pressure and commercial real estate stress. As investors have adjusted expectations for fewer rate cuts in 2024, shares of both companies have declined in sympathy.”