Barron’s published an article in mid-June suggesting that NVIDIA is an expensive AI stock and offered seven cheaper alternatives in the same sector. One expert mentioned that AI companies in Asia are trading at half the valuations of American companies like NVIDIA. Despite a 12% drop in its share price, NVIDIA’s valuations are still high compared to these Asian bargains.
Some examples of cheaper stocks outside the technology sector were provided. These include Knife River (KNF), American Eagle Outfitters (OAS), and Hormel Foods (HRL). Knife River is a construction materials company that has seen significant stock price growth compared to MDU Resources, its parent company. American Eagle’s performance has lagged behind its competitor Abercrombie & Fitch, but it reported solid financial results for the first quarter of 2024. Hormel Foods, on the other hand, reported a slight decline in net sales in its second quarter but showed growth in operating cash flow.
Each of these stocks offers lower price-to-sales and price-to-cash flow ratios compared to NVIDIA and other stocks mentioned in the article. For investors looking for cheaper alternatives in the AI and technology sectors, these could be attractive options.
Article Source
https://investorplace.com/2024/06/3-stocks-to-buy-for-the-price-of-one-nvidia-share/
