Tech stocks have been treated poorly this last 12 months. Granted, they definitely were perhaps treated too well within the years leading as much as the present downturn. Besides, some strong firms on the market at the moment are providing investors with opportunities of a lifetime, including this undervalued stock.
And that undervalued stock is…
Dye & Durham (TSX:DND) is the undervalued stock I would definitely take a have a look at today. Now at first glance, you may not think there may be much value there. The corporate is coming off of poor earnings and shares are slumped, yet the price-to-earnings (P/E) ratio continues to be quite high.
But if you happen to’re a long-term investor, don’t let these facts scare you off. As a substitute, what you should have a look at is the safety provided by DND stock. That’s where the worth truly lies. DND stock provides software and technology solutions for financial institutions, governments, law firms, and more. These are institutions which are simply not going anywhere. What’s more, they need products 12 months after 12 months, signing onto recurring contracts that bring with it recurring revenue.
For this reason, you may practically guarantee that DND stock might be here for years to come back. What’s more, it is going to proceed to expand in these incredibly secure areas of the market. In reality, even with poor earnings, it’s been doing just that.
What’s happened these days
DND stock reported a net lack of $34.8 million during its second quarter, with revenue falling 3% in comparison with the identical time last 12 months. This can be a huge increase in net loss from the $4 million reported last 12 months.
Now on the surface, in fact, this will not be excellent news. But there’s something that long-term investors should profit from. DND stock is currently heading in the right direction to exceed its 10% cost reduction plan for the full-year of 2023. It’s purchasing shares for cancellation, and already reduced costs by $17.8 million in the primary six months of fiscal 2023.
“We proceed to innovate our product offering and take concrete actions to fortify the business in the present difficult environment. Our disciplined approach toward capital allocation and price management position the business for sustained growth.”
Matt Proud, CEO of Dye & Durham
So what’s in store for 2024?
Should the corporate proceed towards this 10% cost reduction plan, it is going to create a possibility for those searching for an undervalued stock. Should you imagine that a stock has a robust long-term plan, then this is strictly the time you should buy it. Pick it up when it’s down, and you may look ahead to years of growth in the long run.
Shares of DND stock are down about 29% within the last 12 months alone as of writing, but up 47% within the last three months. What’s more, shares fell but only barely after earnings, likely due to the strength of this plan.
So if you happen to’re an investor wanting a long-term hold and big returns by 2024, then I would definitely consider DND stock as an undervalued stock to select up now.
The post Investing in This Undervalued Stock Now Could Mean Huge Returns in 2024 appeared first on The Motley Idiot Canada.
Should You Invest $1,000 In Dye & Durham?
Before you think about Dye & Durham, you’ll need to hear this.
Our market-beating analyst team just revealed what they imagine are the 5 best stocks for investors to purchase in February 2023… and Dye & Durham wasn’t on the list.
The web investing service they’ve run for nearly a decade, Motley Idiot Stock Advisor Canada, is thrashing the TSX by 22 percentage points. And straight away, they think there are 5 stocks which are higher buys.
See the 5 Stocks
* Returns as of two/17/23
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More reading
- 4 Best Canadian Stocks You Can Buy for Less Than $40
- 3 Canadian Small-Cap Gems Youâll Wish to Buy (Before Everyone Else Does)
- 3 Tech Stocks I’d Buy Before the Next Bull Market
- 3 Undervalued Gems to Buy for Less Than $30
- Got $1,000? Buy These Hot Growth Stocks Before They Take OffÂ
Idiot contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Idiot has no position in any of the stocks mentioned. The Motley Idiot has a disclosure policy.