3 Stocks to Buy for the Price of One Nvidia Share

Core Viewpoint - Nvidia is characterized as an expensive AI investment, with alternatives in emerging markets trading at significantly lower valuations [1] Group 1: Nvidia and Market Comparisons - Nvidia's share price has decreased by over 12% since June 20, trading at 37x sales and 66x cash flow, while Asian AI companies trade at 18.5x sales and 33x cash flow [1] - The current trading price of Nvidia stock is $124 [1] Group 2: Knife River (KNF) - Knife River trades around $72 with a market capitalization of $4.09 billion, accounting for 58% of Nvidia's share price [2] - Knife River was spun off from MDU Resources in June 2023, focusing on construction materials and contracting services [2] - Five out of six analysts covering Knife River rate it a buy, with a target price of $88, indicating a potential 22% upside [2] Group 3: American Eagle Outfitters (AEO) - American Eagle trades around $21 with a market capitalization of $4.11 billion, accounting for 17% of Nvidia's share price [4] - The company reported Q1 2024 revenues of $1.1 billion, a 6% year-over-year increase, with digital revenue up 12% [4][5] - American Eagle's operating income was $77.8 million, a 76% increase from the previous year, and earnings per share were $0.34, up 278% [5] - The stock trades at 0.77x sales and 7.57x cash flow, significantly cheaper than Abercrombie & Fitch [5] Group 4: Hormel Foods (HRL) - Hormel Foods trades at around $31 with a market capitalization of $16.71 billion, accounting for 25% of Nvidia's share price [6] - Hormel's Q2 2024 net sales were $5.88 billion, slightly down from $5.95 billion a year ago, with net income at $189.3 million, a 13% decrease [6][7] - The company's operating cash flow for the first half of 2024 was $640 million, a 55% increase year-over-year, resulting in a P/CF of 12.8x [7] - Hormel has a dividend yield of 3.7% and strong brand recognition with products like Planters and SPAM [7]