Market Volatility Presents Opportunities: Two Undervalued Stocks to Consider

As market volatility returns, retirement savers may feel anxious. However, those not planning to access their savings for several years can take a more relaxed approach. Historically, stock market dips offer the best chances to invest, as lower share prices allow investors to capture more earnings, resulting in strong returns when markets recover.

To assist in finding undervalued growth stocks, we highlight two promising candidates.

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1. Meta Platforms

Meta Platforms (NASDAQ: META) has recently reported significant growth, fueled by investments in artificial intelligence (AI) to enhance personalization on its social media platforms. Despite this growth, the company trades at a modest 24 times earnings.

Each year, Meta allocates billions toward technology to bolster the growth of its applications, particularly in AI. Over 700 million active users have engaged with its Meta AI assistant, with projections estimating this number could reach 1 billion by 2025.

Meta AI’s rapid adoption showcases the company’s advantage with a vast daily user base of over 3.3 billion across Facebook, Instagram, WhatsApp, Messenger, and Threads. This extensive reach contributes to robust advertising revenues. Last year, Meta reported a net income of $62 billion on $164 billion in revenue, achieving a top-line growth rate of 22%. Besides Meta AI, the company also provides professional AI tools to enhance ad targeting within its app ecosystem, positioning itself for additional revenue opportunities through premium AI services.

Analysts forecast a 16% annualized earnings growth for Meta in the coming years. Although predicting short-term stock movements is uncertain, buying shares now could yield returns closely tied to the company’s fundamental growth moving forward.

2. The Trade Desk

The Trade Desk (NASDAQ: TTD) stands out as a premier digital ad-buying platform capitalizing on the expanding digital advertising market, which is valued at $800 billion and showing significant growth.

A lower-than-expected revenue report last quarter resulted in a sharp decline in the stock price. Despite this setback, the company’s competitive positioning and long-term prospects remain strong, creating an attractive entry point for investors.

Ad agencies and brands favor The Trade Desk for its comprehensive inventory and advanced technology that aids in profitable ad-buying strategies. For instance, its Kokai AI platform processes millions of ad impressions every second, helping advertisers secure optimal deals. This capability enhances pricing, targeting, and overall ad performance, thus attracting more clients.

The company generates revenue by charging a fee based on the total ad spending of its clients. In 2024, revenue increased by 26% to $2.4 billion, with a solid profit margin of 16%.

Connected TV is emerging as a major opportunity for The Trade Desk, highlighted by partnerships with major players like Roku and Disney. Statista estimates that the connected TV ad market could reach $46 billion by 2026, offering substantial growth potential.

While revenue is set to grow by 18% this year, the stock trades at its lowest valuation in years. Analysts anticipate earnings of $3.89 by 2028, making the current share price around $50 appear attractive. Investors who capitalize on this dip could see significant gains in the future.

Should You Invest $1,000 in Meta Platforms Right Now?

Before purchasing stock in Meta Platforms, consider the following:

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*Stock Advisor returns as of April 10, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Meta Platforms, Roku, The Trade Desk, and Walt Disney. The Motley Fool operates under a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.