These 4 undervalued stocks could be hidden gems of H2 2024
U.S. stocks did amazingly well in the first half this year and the second half is unlikely to be any different, says Christopher Carey – portfolio manager at Carnegie Investment Counsel.
Following are the top four undervalued stocks that he expects will be the hidden gems in the back half of 2024.
Cintas Corp (NASDAQ: CTAS)
Cintas is a “great company” to buy and hold for the second half of this year as it’s fully committed to acquisitions that continue to make it a lot stronger.
Christopher Carey is bullish on CTAS as other names in its industry either choose to merge with Cintas Corp or end up with “terrible” financials.
Cintas shares currently pay a dividend yield of 0.78% as well that makes up for another great reason to have it in your investment portfolio. Wall Street currently has a consensus “overweight’ rating on Cintas stock.
Deere & Co (NYSE: DE)
Deere stock is worth owning for the second half of 2024 as demand for alternative food sources is on the rise in the midst of increasingly more difficult climate conditions.
Against that backdrop, DE will “benefit from precision agriculture and less arable land worldwide”, as per Christopher Carey.
Carey even sees the New York listed firm as better positioned than the ones related to artificial intelligence as “everyone needs to eat” and, therefore, Deere & Company “will never go out of fashion”.
DE share price has lost more than 10% after it trimmed its full-year guidance in May but the sell-off makes up for an opportunity to build a position in the Moline-headquartered firm at a discount, he added.
Charles Schwab Corporation (NYSE: SCHW)
Christopher Carey expects Charles Schwab to be a hidden gem of H2 as it is “becoming a completely different company”.
That’s because SCHW is driving “tremendous growth in client base and assets under custody” as it continues to strengthen its footprint in the registered investment advisors (RIA) space that Carey believes will “overtake the bank and brokerage world within the next couple of years”.
According to the Carnegie portfolio manager, recent integration of TD Ameritrade and plans of introducing an alternatives platform for investors with over $5.0 million also make Charles Schwab stock more attractive to buy and hold for the stock quarter of 2024.
Stryker Corp (NYSE: SYK)
Stryker is a great investment at current valuation as an ageing population will drive solid demand that will translate to “incredible margins and gains” for the medical technology company moving forward, as per Christopher Carey.
He recommends building a position in SYK for the back half of 2024 as it’s well-positioned to “capitalise on multi-decade trends”.
In late April, the multinational based out of Kalamazoo, Michigan came in ahead of Street estimates for its first financial quarter. Consensus is for it to earn $2.79 a share in its current fiscal quarter – up from $2.54 per share a year ago.
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