The turbulence created by DeepSeek has rattled U.S. tech stocks, prompting investors to seek better opportunities elsewhere. With market uncertainty looming, many are shifting their focus to undervalued stocks with more potential.
One key metric for evaluating a stock’s profitability is the price-to-earnings (P/E) ratio. This is calculated by dividing the stock’s price by its earnings per share (EPS). EPS measures how much profit a company generates for each outstanding share of its common stock.
Here’s an example:
The P/E ratio is valuable for assessing whether a stock is undervalued or overvalued. Generally, a lower P/E ratio suggests a more attractive investment opportunity, which may indicate that a stock is trading below its intrinsic value. However, P/E ratios should always be analyzed in context with other factors, including industry trends, market conditions, and a company’s growth potential.
General Motors (GM) is a leading global automaker that designs, manufactures, and sells a wide range of vehicles, including cars, trucks, SUVs, and crossovers. In addition to producing automobiles, GM also develops and supplies auto parts to support vehicle maintenance and performance
As of February 2025, General Motors’s stock performance looks like this:
Comcast (CMCSA) is a global media and technology company. It provides internet, wireless, and TV services through Xfinity, Comcast Business, and Sky. It also creates, distributes, and streams entertainment, sports, and news.
As of February 2025, Comcast’s stock performance looks like this:
First Solar (FSLR) is a leading solar technology company that delivers solar energy solutions across the globe. Its products and services efficiently convert sunlight into electricity and provide an alternative to conventional energy to promote sustainability.
As of February 2025, First Solar’s stock performance looks like this:
Led by the legendary Warren Buffett, Berkshire Hathaway (BRK.B) is a diversified conglomerate with a wide range of business interests. The company and its subsidiaries are involved in industries such as insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services, and retail.
As of February 2025, Berkshire Hathaway’s stock performance looks like this:
Super Micro Computer (SMCI) makes hardware that supports AI applications. Super Micro integrates the technology into its servers to support AI workloads as a key partner and reseller of Nvidia’s (NVDA) GPUs and other components. Super Micro CEO Charles Liang and Nvidia CEO Jensen Huang are both Taiwanese immigrants and have a long-standing relationship. The San Jose-based company entered the Fortune 500 at No. 498 as part of a frenzy over AI and related tools.
As of February 2025, SMCI’s stock performance looks like this:
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