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3 Unstoppable Stocks That Are Too Cheap to Ignore Right Now
ADBEAdobe(ADBE) The Motley Fool·2025-03-29 12:15

Core Viewpoint - The article discusses three stocks—Taiwan Semiconductor Manufacturing (TSM), Alphabet, and Adobe—that are currently undervalued compared to the broader market, suggesting they present strong buying opportunities despite recent sell-offs [2][5][11]. Valuation Comparison - All three stocks have lower forward price-to-earnings (P/E) ratios than the S&P 500, which is currently trading at 21 times forward earnings, while none of the three exceeds 20 [3][4]. - The market's slight premium on the S&P 500 indicates expectations of slower growth for these companies, which the article argues is a misconception [5]. Company-Specific Insights - Taiwan Semiconductor Manufacturing (TSM): Expected to grow revenue at nearly 20% compound annual growth rate over the next five years, significantly outpacing the market's typical 10% growth [6][7]. - Alphabet: Anticipated to achieve 11% revenue growth in 2025 and 2026, with earnings per share (EPS) growth projected at 12% and 14% for the same years, respectively [8]. - Adobe: Despite being perceived as vulnerable to AI disruption, it reported a 10% year-over-year revenue increase in its fiscal 2025's first quarter. The company is also executing an aggressive buyback program, repurchasing 7 million shares, which could enhance EPS growth [9][10]. Investment Opportunity - The article concludes that while these companies may not be the fastest-growing stocks, they have strong potential to outperform the market, making them attractive value plays at their current prices [11].