The Nasdaq 100 represents one of the more realistic economic aggregates to keep an eye on because it’s there you’ll find undervalued Nasdaq stocks.
Unlike the Dow Jones Industrial Average, the Nasdaq 100 has triple the company data from which to extrapolate predictions while maintaining a tighter focus on quality and company value.
This also gives it an edge as a better snapshot of the most valuable companies on the Nasdaq exchange but limits its index investment opportunities compared to the S&P 500.
Moreover, with the diverse array of speculation and focus the exchange receives, some undervalued Nasdaq stocks can slip through the cracks.
The increase in value of the Nasdaq presses ever on as the major tech giants that make it up boom thanks to artificial intelligence.
However, unlike these securities that live in the limelight, some legacy companies with less attention could have serious potential for the right price.
As such, here are three undervalued Nasdaq stocks to keep an eye on for the second half of 2024.
Baker Hughes (BKR)
I’ve been repeatedly bullish on Baker Hughes (NASDAQ:BKR) this year, and I’d like to continue making a case for it as the need for fracking becomes more evident by the day.
On paper, many activists and green energy proponents discuss fracking as an excessively polluting method of resource extraction. Others dispute the end products of shale oil, such as crude oil and natural gas, as dangerous for the environment.
Then its supporters will claim it’s the key to America’s energy independence.
As with most debates, the truth is somewhere in the middle, but no matter what, BKR has a future.
That’s because far too many industries in the U.S. rely on the end products of fracking for their energy needs and products.
The 2.15 trillion barrels of proven shale oil reserves in the contiguous 48 states represent a long-term extraction project for BKR, should a new administration come to power that values the cheap and accessible energy provided by fracking.
Advanced Micro Devices (AMD)
There’s an odd trend in the graphics processing unit race these days that has made me wonder why Advanced Micro Devices (NASDAQ:AMD) doesn’t have a higher stock price.
After all, its commercial GPUs often command a reputation for good value and strong performance. The answer, however, might be that AMD simply does not focus on the competition.
Rather, the company is getting very good at staying in its lane, and the artificial intelligence industry has room for every chipmaker, as it aggressively consumes all the computational power it can.
The company has balanced steady year-over-year revenue growth with ample research and development to continuously offer improvements on existing products while releasing new ones.
As such, the broadly diversified portfolio of fabless chips AMD offers could help it find an equally lucrative niche like Nvidia (NASDAQ:NVDA) did with its data center GPU product line.
Thus, AMD could be among the undervalued Nasdaq stocks as its 12-month high price target from TipRanks.com starts to look more possible.
Comcast (CMCSA)
From Peacock to Universal Studios, Comcast’s (NASDAQ:CMCSA) commitment to growth and continuously tapping into consumer demand seems to be paying off.
The company’s projects in both modernizing its content distribution via a proprietary streaming service and desire to keep theme parks exciting led to a steady year-over-year revenue growth for Q1 2024.
By expanding its Super Nintendo World project, Comcast is cementing the recurring profits of its highly successful Super Mario Bros. movie.
While on the topic of movies, though its premise is highly played out, Comcast’s Kung Fu Panda 4 has done $480 million in sales year-to-date.
While no movie series can make money for a company forever, investors should keep an eye on how Comcast strategically stretches the intellectual properties it owns to keep profits flowing.
Thus, through its commitment to creativity and media distribution, Comcast seems genuinely undervalued at a share price of around $40.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.