The Nasdaq has been surging in the early months of 2024. The Nasdaq 100 Index seems to be setting new highs almost every week, particularly in fields such as artificial intelligence (AI) and semiconductors.
This meteoric rise has understandably raised concerns about a potential market bubble, with several significantly overvalued Nasdaq stocks. But amid this, some gems shine through, offering promising investment opportunities within the Nasdaq. Let’s have a look at three such companies that present good entry points for investors.
Bruker (BRKR)
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Bruker (NASDAQ:BRKR) is a compelling life sciences company with a rich history in niche lab equipment, such as nuclear magnetic resonance (NMR) spectroscopy machines. The company’s market dominance in several key product lines has been well-established over the years.
While Bruker experienced a sales slowdown in recent years due to pandemic and inflation-related spending constraints, it has rebounded with excellent earnings this week. Additionally, Bruker’s “BEST” division, focused on superconductor technologies, has shown rapid growth, particularly in the renewable energy and electronics sectors.
With the surge in earnings propelling shares higher, BRKR stock stands out as an appealing investment opportunity for growth-minded investors.
Honeywell (HON)
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A distinctive Nasdaq-listed growth opportunity is industrial giant Honeywell (NASDAQ:HON). While lesser-known, Honeywell made a significant move to the Nasdaq from the New York Stock Exchange in 2021, emphasizing its deep involvement in technology and sustainability.
Honeywell’s extensive history includes groundbreaking inventions such as the modern thermostat’s predecessor, barcodes, unleaded gasoline, biodegradable detergents, and aviation autopilots. Today, the company’s emphasis on industrial automation, particularly in smart warehouses and logistics networks, underscores its critical role in supporting companies like Amazon.
Furthermore, Honeywell’s foray into cutting-edge innovations, including quantum computing, has resulted in the creation of Quantinuum – a firm focusing on cybersecurity, drug discovery, supply chain management, and AI, among other fields. With its majority stake in this promising venture, HON stock presents an attractive opportunity for growth at a reasonable valuation.
Pepsico (PEP)
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One surprising Nasdaq-listed entity is soft drink and snack food giant Pepsico (NASDAQ:PEP). Despite the lack of significant share appreciation last year, Pepsico offers a unique value proposition for investors.
This relative underperformance is partially explained by market concerns about consumer staples companies like Pepsico, attributed to higher interest rates and potential impacts of weight loss drugs on soft drink and snack food demand.
However, PEP stock currently trades at a modest 21 times forward earnings, which seems to incorporate these concerns. Given its track record of consistent earnings growth and rising dividends, Pepsico appears to be a relative bargain within the Nasdaq market.
On the date of publication, Ian Bezek held a long position in BRKR stock, and the opinions expressed in this article adhere to the InvestorPlace.com Publishing Guidelines.
