Amazon: Despite a 70% surge in the past year, Amazon (NASDAQ: AMZN) remains a bargain due to its unique reinvestment strategy and dominant position in e-commerce and cloud services.
Altria: While facing share price declines, Altria (NYSE: MO) offers investors high dividend yields and potential revenue diversification through ventures like Njoy, a smokeless tobacco device.
Coupang: Similar to Amazon, Coupang (NYSE: CPNG) has established itself in e-commerce and is expanding into new markets like Taiwan, backed by a growing customer base and strong operating cash flow.
These three excellent consumer stocks are currently trading at ridiculously low levels. Although price does not always equate to value, considering that these companies trade for anywhere from $15 and $170, even those with little funds can purchase entire shares of these stocks.
(Photo : by Spencer Platt/Getty Images)These three excellent consumer stocks are currently trading at ridiculously low levels.
1. Amazon
Amazon (NASDAQ: AMZN) has surged 70% over the past year, yet it remains a bargain for investors. The company's unique strategy involves reinvesting profits into its business to fuel growth, a practice unmatched by many other firms. Amazon's dominance in e-commerce, with a 38% market share in America, coupled with its position as the world's largest cloud platform, boasting a 31% share, underscores its market leadership.
Additionally, Amazon's foray into media, evidenced by $47 billion in ad revenue in 2023 and plans to stream an exclusive National Football League playoff game next season, further solidifies its standing.
From an investor perspective, Amazon's price-to-operating-cash-flow ratio reveals that the stock is trading below its historical levels, indicating potential undervaluation. Despite its status as one of the world's largest corporations, Amazon continues to generate record profits per share, making it an attractive investment opportunity.
While future growth may not match its historic rates, Amazon's strong fundamentals suggest that the current valuation undervalues the company's potential, making it a compelling option for investors seeking long-term growth.
2. Altria
Altria (NYSE: MO) has faced a decline in its share price in recent years, reminiscent of $5 steak vibes for investors. However, there may be optimism on the horizon. Despite ongoing challenges in its core smokeable products business, Altria has demonstrated financial resilience, which is reflected in its sustained profitability and one of the highest dividend yields in the market, nearly 10%, with a manageable payout ratio of 79%.
Looking ahead, Altria aims to diversify its revenue streams, with potential opportunities such as Njoy, a heat-not-burn tobacco device acquired for $2.75 billion last year. Leveraging its Marlboro brand, Altria seeks to position Njoy as a smokeless cigarette alternative, alongside its existing oral nicotine pouch brand, On!.
Coupang (NYSE: CPNG), akin to Amazon, has solidified its presence in the e-commerce sector while diversifying its offerings. With a substantial quarter share of South Korea's e-commerce market, Coupang is renowned for its swift delivery, often fulfilling 99% of orders within hours. Beyond e-commerce, the company provides a range of services including online grocery and meal delivery, along with media and payment solutions.
Despite challenges, Coupang boasts a robust customer base of 20 million as of the third quarter of last year, witnessing a 14% year-over-year increase. Expanding beyond its home market, Coupang has ventured into Taiwan, a strategic move to tap into a market of 23 million people. Management's commitment to this expansion and the company's growing operating cash flow signal a promising outlook for its core commerce operations.
