These 10 AI Stocks Have The Best Buy And Hold Valuation Metrics

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Introduction

This article identifies the 10 AI stocks that still exhibit more room to run in 2024 based on their current excellent Price-to-Earnings (1-year) Growth (PEG) Ratio valuation metrics. 


Why the PEG Ratio?

Given that growth is a key component of a stock's expected return, the PEG ratio provides a simple way for investors to see how cheap a stock is relative to its growth rate and to compare a stock to its competitors. The lower the PEG ratio - lower than 1.0 is best - the more the stock may be undervalued given its future earnings expectations while a ratio between 1.0 and 2.0 suggests a stock is overvalued.

The PEG ratio should be used along with the balance sheet, debt burden, and cash flow, or other valuation metrics that use the income statement. It's also important to understand things like a company's competitive advantage, its addressable market, and its long-term growth prospects.


The Top 10 Best Value AI Stocks 

This article highlights the performances of the 10 "best value" AI&R stocks in March (as of March 27th), in descending order of their respective PEG ratios, their latest stock performances MTD (as of March 27th) as well as YTD and in the past 5 months since the sector took off at the end of October, 2023:

  1. Baidu (BIDU): PEG Ratio: 0.38
    • UP 3.6% in March; DOWN 11.8% YTD; No Change in the last 5 months
  2. ASE Technology (ASX): PEG Ratio: 0.56
    • UP 12.9% in March; UP 16.9% YTD; UP 47.7% in the last 5 months
  3. Uber Technology (UBER): PEG Ratio: 0.87
    • DOWN 1.7% in March; UP 28.9% YTD; UP 80.5% in the last 5 months
  4. Box (BOX): PEG Ratio: 0.89
    • UP 10.2% in March; UP 10.9% YTD; UP 14.2% in the last 5 months
  5. Super Micro Devices (SMCI): PEG Ratio: 0.90
    • UP 18.1% in March; UP 260.0% YTD; UP 327.3% in the last 5 months
  6. Taiwan Semiconductor (TSM): PEG Ratio: 1.05
    • UP 6.2% in March; UP 31.4% YTD; UP 58.4% in the last 5 months
  7. Nvidia Corporation (NVDA): PEG Ratio: 1.09
    • UP 14.1% in March; UP 82.2% YTD; UP 121.3% in the last 5 months
  8. Advanced Micro Devices (AMD): PEG Ratio 1.10
    • DOWN 6.7% in March; UP 21.8% YTD; UP 83.3% in the last 5 months
  9. STMicroelectronics (STM): PEG Ratio: 1.13
    • DOWN 3.6% in March; DOWN 12.3% YTD; UP 15.8% in the last 5 months
  10. Meta Platforms (META): PEG Ratio: 1.22
    • UP 0.8% in March; UP 39.5% YTD; UP 122.1% in the last 5 months


Summary

On average, the above 10 AI stocks had a PEG Ratio of 0.92; a March increase of 10.0%; a YTD increase of 94.6% and an average increase of 122.1% in the last 5 months. In comparison, the Global X Artificial Intelligence and Technology ETF (AIQ) of 91 stocks is UP 2.1% MTD; UP 9.1% YTD and UP 30.0% since the end of October 2023.


More By This Author:

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SoundHound AI: A “Pump & Dump” Stock Or A Long-Term Hold?
Bubble In AI Stocks Is Still Inflated - Here's Proof

Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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