2023-06-01 07:41:00 ET
The stock market has started to recover from a painful 2022, but many of yesteryear's high-priced market darlings are still trading far below their two-year peaks. In fact, some of them look downright undervalued by traditional metrics such as price to earnings (P/E) and price to free cash flow (P/FCF) ratios. You know, those sky-high numbers that growth investors just tend to accept as long as the company keeps delivering that sweet, sweet sales growth.
In this market, it's like we're at a garage sale near the intersection of Wall Street and Silicon Valley -- a virtual Sand Hill Road , if you will. Amid that clutter, we might just find some valuable items that have been discarded for all the wrong reasons. Two such potential treasures are RingCentral (NYSE: RNG) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) . The cloud-based communications veteran and Google's parent company have been through the wringer but now seem poised for wealth-building comebacks.
At that virtual garage sale, you stumble upon an old rotary phone. It's a bit dusty, maybe even a bit rusty, but you see potential. That's kind of like RingCentral right now. Sure, it's been a bit roughed up by the market recently, but this digital communications expert could be just the connection your portfolio needs.
For further details see:
You Could Buy These 2 Growth Stocks on the Dip