Typically, securities may be less appreciated by the market because they stink, which means several proposals for best undervalued growth stocks for June might not make the cut. At the same time, betting on the same ship as everyone else presents its own risks.
Namely, you could end up holding the bag. To improve the odds of success for high growth potential stocks for June, investors should first target holistically undervalued entities. In other words, your most viable prospects should be discounted across several metrics, such as earnings, sales and book value. This way, you’re more likely to mitigate the impact of aberrant statistics.
Another factor to consider is the fundamentals. Several public firms incur red ink because the narrative appears bearish right now. However, down the line, the framework might change. If you’re willing to speculate on the future, these are the top bargain stocks with growth potential to consider.
HF Sinclair (DINO)
Headquartered in Dallas, Texas, HF Sinclair (NYSE:DINO) is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products.
Though the hydrocarbon sector may be deflated right now due to various worries, at any point, a geopolitical conundrum could see the segment bounce higher. Thus, DINO makes a case for best undervalued growth stocks for June.
Since the beginning of this year, DINO slipped almost 17%. Still, the red ink opens its financials for some bargain hunting. Currently, the market prices DINO at a forward multiple of 5.47. As a discount to projected earnings, HF Sinclair ranks better than 66.36% of companies listed in the oil and gas industry.
Additionally, DINO trades at 0.23-times trailing sales. Here, the discount to revenue makes HF Sinclair compare favorably to 82.79% of sector players. Plus, DINO is priced at 2.9-times free cash flow, well under the sector median of 6.67 times.
Finally, analysts peg DINO a moderate buy with a $56.75 average price target, implying 37% upside potential. Thus, it’s a legitimate contender for high growth potential stocks for June.
Sanmina (SANM)
Based in San Jose, California, Sanmina (NASDAQ:SANM) is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global electronics manufacturing services (EMS) market. As a technology leader, Sanmina provides end-to-end manufacturing solutions, primarily in communications networks and cloud computing specialists. In addition, it offers services to the industrial, defense, medical and automotive sectors.
Thanks to its myriad applications, SANM makes a great case for best undervalued growth stocks for June. At the moment, the market prices SANM at a forward multiple of 8.21. As a discount to projected earnings, Sanmina ranks better than 88.94% of the competition. Also, SANM trades at 1.39-times tangible book value. In contrast, the sector median stat clocks in at a loftier 1.83 times.
Notably, Sanmina benefits from an operationally efficient business, as evidenced by its Piotroski F-Score of 7 (out of 9). As well, its return on equity impresses at 15.23%, thus presenting a case for top bargain stocks with growth potential. Lastly, Craig-Hullum’s Christian Schwab pegs SANM a buy. The expert’s price target lands at $76, implying over 43% upside potential.
BioNTech (BNTX)
Hailing from Germany, BioNTech (NASDAQ:BNTX) is a biotechnology company that develops and manufactures active immunotherapies for patient-specific approaches to the treatment of diseases. Of course, BioNTech shot to fame thanks to its collaboration with Pfizer (NYSE:PFE) to forward a Covid-19 vaccine. However, fading fears associated with the SARS-CoV-2 virus led to BNTX losing relevancy. Since the Jan. opener, it dipped over 29%.
Nevertheless, astute contrarians might consider BioNTech as one of the best undervalued growth stocks for June. Right now, the market prices BNTX at a forward multiple of 19.16. As a discount to projected earnings, BioNTech ranks better than 66% of its peers. Also, it trades at 2.04-times trailing sales. As a discount to revenue, the company outflanks 86% of the competition.
To be fair, BioNTech suffered a huge revenue shortfall in the first quarter of 2023 relative to the year-ago level. As expected, the change centered on lower commercial revenues from the supply and sales of its Covid-19 vaccines. However, moving forward, BioNTech may leverage its acumen to address other diseases and conditions.
In closing, analysts peg BNTX as a consensus moderate buy. Their average price target lands at $156.31, implying nearly 49% upside potential. Thus, it could be one of the top bargain stocks with growth potential.
Peabody Energy (BTU)
Based in Missouri, Peabody Energy (NYSE:BTU) is a leading coal producer, providing essential products to fuel baseload electricity for emerging and developed countries. Per its public profile, Peabody also helps create the steel needed to build foundational infrastructure. Yes, in the political paradigm of green and renewable energy solutions, BTU appears to risk irrelevancy. Not surprisingly, then, shares stumbled nearly 28% since the January opener.
Nevertheless, contrarians might leverage the red ink, possibly making BTU one of the best undervalued growth stocks for June. In part, the intermittency and relative lack of unreliability makes the renewable energy sector a not-holistically viable alternative. Therefore, BTU priced at 0.76-times tangible book value appears an enticing bargain. Also, shares trade at a lowly 0.51-times trailing sales.
To be fair, Peabody’s three-year revenue growth rate comes in at 10.8% below zero. Nevertheless, its recent quarterly performances suggest that the company will turn this narrative around. Thus, BTU could be one of the best stocks for high returns in June. Turning to Wall Street, analysts peg BTU as a consensus strong buy. Their average price target clocks in at $30, implying over 65% upside potential.
PCTEL (PCTI)
Calling Bloomingdale, Illinois home, PCTEL (NASDAQ:PCTI) is a leading global provider of wireless technology, including purpose-built Industrial Internet of Things (IoT) devices, antenna systems and test and measurement solutions.
Fundamentally, PCTEL represents a background player, providing critical infrastructural needs while avoiding the glare of a household name. Thus, it makes a strong case for best undervalued growth stocks for June.
Interestingly, since the January opener, PCTI gained over 11% of equity value. Despite the solid performance, the market prices shares at a trailing multiple of 15.42. As a discount to earnings, PCTEL ranks better than 60.63% of the competition. Also, shares trade at 0.9-times trailing sales and 1.47-times tangible book value.
Just as well, PCTEL carries a stable balance sheet. Primarily, its cash-to-debt ratio clocks in at 7.93, ranking above nearly 76% of sector rivals. Also, its equity-to-asset ratio lands at 0.81%, above 87%. Thus, it’s a tempting example of top undervalued stocks for growth in June.
Looking to the Street, analysts peg PCTI as a moderate buy. Their average price target lands at $9, implying over 88% upside potential.
ACM Research (ACMR)
Headquartered in Fremont, California, ACM Research (NASDAQ:ACMR) develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, stress-free polishing and thermal processes. Its service is critical to advanced semiconductor device manufacturing, along with wafer-level packaging. Thus, from a pure relevancy standpoint, ACM Research could be one of the best undervalued growth stocks for June.
Since the Jan. opener, ACMR gained a bit over 5% of equity value. However, in the trailing one-year period, it slipped nearly 31%. Nevertheless, the red ink presents a case for top bargain stocks with growth potential. Specifically, ACMR trades at a forward multiple of 10.25. As a discount to projected earnings, ACM ranks better than 90.23% of companies listed in the semiconductor industry.
Also, ACMR might be one of the high growth potential stocks for June. Its three-year revenue growth rate clocks in at an impressive 47%. This stat beats out 93.9% of its peers. Lastly, analysts peg ACMR a unanimous strong buy. Their average price target comes in at $22.13, implying nearly 119% upside potential.
Chimerix (CMRX)
Based in Durham, North Carolina, Chimerix (NASDAQ:CMRX) is a development-stage biopharmaceutical company dedicated to accelerating the advancement of innovative medicines that make a meaningful impact in the lives of patients living with cancer and other serious diseases. From a scientific perspective, CMRX may rank among the best undervalued growth stocks for June. However, it’s going to be a risky endeavor.
Since the start of this year, CMRX dipped more than 26% of equity value. In the trailing one-year period, CMRX fell more than 23%. Still, Chimerix might attract speculators because of its low multiples. For example, CMRX trades at 3.68-times trailing sales. As a discount to revenue, the company ranks better than 76.2% of its biotech peers. As well, CMRX is priced at only 0.51-times tangible book value.
As well, it could be one of the high growth potential stocks for June thanks to its three-year revenue growth rate of 19%. This stat ranks better than 64.35% of its rivals. Additionally, Chimerix features a robust balance sheet, particularly a very strong cash-to-debt ratio of nearly 120 times.
On a final note, analysts peg CMRX as a unanimous strong buy. Their average price target stands at $7.67, implying nearly 456% upside potential.
— Josh Enomoto
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Source: Investor Place