Best Bang For Your Buck? 2 Bargain Stocks with 30%+ Upside
When it comes to identifying target stocks for investment, compelling prospects may include companies that are undervalued and, simultaneously, expected to appreciate in the future.
Of course, timing an investment in one of these firms is notoriously difficult. It may help to look for companies or industries that have recently experienced unique challenges but which remain fundamentally strong. In other cases, a firm may have this quality of being both undervalued and rich with upside potential if it remains relatively overlooked by investors.
Two such companies worth watching are DexCom Inc. (NASDAQ: DXCM), a leader in diabetes monitoring systems, and The Trade Desk Inc. (NASDAQ: TTD), a marketing automation pioneer. Both offer intriguing entry points for investors seeking growth at a relative discount.
DexCom's Corner of the Market is Strong, With Revenue Potentially Accelerating
Though it is a roughly $30-billion company, DexCom's niche focus within the medical device space means it remains unknown to many investors unfamiliar with the healthcare sector. Regarding continuous glucose monitoring systems that are vital for many patients with diabetes, though, DexCom has a substantial share of the global market and a dominant product.
DexCom shares have trended slightly lower in the past year than they did for several years prior, in part because the company's annual revenue growth had slowed somewhat.
However, a robust period in the second quarter of the year—the firm generated 15% year-over-year (YOY) organic revenue gains and revised its full-year guidance upward on the strength of its Stelo line, among other things—may be shifting the narrative.
Another significant development is securing type II non-insulin coverage with the major U.S. pharmacy benefit managers (PBMs), which should expand access to DexCom's products.
While DexCom's P/E ratio of 52.78 would be high in some sectors, it is lower than the average of 75.38 in healthcare. It also represents nearly the lowest P/E ratio the company has seen in about five years, suggesting that this could be a unique opportunity to buy DXCM while shares are comparatively undervalued.
Additionally, analysts see some 31% upside potential as the stock could reach up to just under $100 per share based on estimates.
AI Challenges Have Made The Trade Desk a Buy Opportunity
The Trade Desk's shares plummeted after the company revealed better-than-expected sales and an earnings miss in its August 2025 second-quarter earnings report.
Revenue growth has decelerated relative to recent quarters as rivals like Meta Platforms (NASDAQ: META) have eaten away at its share of the advertising business.
Meta's in-house advertising and AI systems provide an essential advantage over The Trade Desk's current operations. Leveraging this technology allows Meta to gain a leg up on automated advertising projects, which have traditionally been The Trade Desk's core business.
However, in the longer run, this technological advantage is likely to be reduced, as The Trade Desk can better implement its own AI on an internet-wide field of advertising content and platforms.
The growth of the company's two-year-old Kokai platform, which reached 75% of client spend last quarter and has been driving faster budget increases among early adopters, is evidence of this.
Given The Trade Desk's overall success throughout its history, the continued rollout of its DealDesk platform, and its ability to retain customers, the company's 61% share price plunge YTD is likely an aberration rather than a new norm.
Analysts see about 36% upside potential for investors willing to be patient. However, there is reason to be cautious as well; even though the company's P/E ratio of 54.51 is its lowest in many years, potentially presenting a case for being undervalued, analysts are somewhat divided on whether now is the ideal time to buy TTD shares.
As of the latest review, 20 analysts call the company a Buy, but a strong minority of 15 have rated it either a Hold or a Sell.
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