With the rise of artificial intelligence and other digital innovations that offer myriad efficiencies and conveniences, the idea of deliberately seeking undervalued non-tech stocks may seem anachronistic. Certainly, undervalued securities are attractive due to the discount effect. However, for an “analog” business, there seems to be a reason it’s a bargain idea.
Still, there can be hidden value in buying non-tech stocks, given the harsh reality that technology fails. I’m not just talking about catastrophic failure. Rather, incidents like cybercrime—an escalating crisis that could ultimately cost the world trillions of dollars to mitigate—imply that analog backups will always help. Additionally, non-malicious events such as bad weather can easily damage or completely destroy technology.
Another reason to consider high-value non-tech stocks is their underlying enduring relevance. Digital transformation can improve planning and operational management, but ultimately much of the work must be done by humans. Also, certain industries simply require a human touch or intuition. Finally, while AI may take over some jobs, others will require human intervention and oversight. This framework provides potential buying opportunities for quality non-tech stocks.
| HCCI | Heritage – Crystal Clean | $36.79 |
| IRM | iron mountain | $56.76 |
| IP | international paper | $31.98 |
Heritage Crystal Clean (HCCI)
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Based in Illinois, Heritage – Crystal Clean (Nasdaq:HCCI) provides parts cleaning, used oil re-refining, hazardous and non-hazardous waste services to small and medium-sized customers, primarily in the automotive maintenance sector. In addition, we also provide similar services to manufacturers and other industrial companies. What makes Heritage Crystal one of the undervalued non-tech stocks to buy is its virtually permanent relevance.
Let’s look at it like this. Investors like to invest in technology companies because their products and services often enable accelerated growth. But in many industries, surging demand profiles have left waste that must be dealt with for obvious reasons. HCCI should enjoy an upward trajectory, as the growth of society as a whole probably won’t stop any time soon.
Even better, HCCI is classified as one of the high-value non-tech stocks. Despite up nearly 47% over the last 365 days, Heritage-Crystal may still have room to play. Specifically, the market price is 14.17 times the forward delivery multiple of the stock price. The company outperforms its peers at 63.64% when discounted on projected earnings.
Iron Mountain (IRM)
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Founded in 1951, iron mountain (New York Stock Exchange:IRM) claims to be a world leader in storage and information management services. According to Iron Mountain’s corporate profile, more than 225,000 of his organizations worldwide trust Iron Mountain for their highly confidential and irreplaceable documents and resources. Of note, the company has a physical storage footprint of approximately 93 million square feet. This statistic includes his 1,450 facilities in 56 countries.
Basically, Iron Mountain represents a compelling idea for undervalued non-tech stocks because tech stocks often fail. As I said at the beginning, digitization is great, but only natural disasters or severe power outages can cause you to lose critical resources. Iron Mountain therefore offers a kind of hard insurance to help business owners sleep better at night.
From a financial point of view, the company has achieved significant growth in sales. On a per-share basis, the company’s three-year earnings growth rate was 5.6%, outperforming its peers at 72.2%. Nevertheless, the market price share is only 3.21 times in sales, better than his competitor’s 80.73%. So if you want to buy non-tech stocks, IRMs are very attractive.
International Paper (IP)
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Headquartered in Memphis, Tennessee, international paper (New York Stock Exchange:IP) is a leading global manufacturer of renewable fiber-based packaging, pulp and paper products. The company has manufacturing operations in North America, Latin America and North Africa, according to its public profile. For the geopolitical conscious, International Paper used to operate in Russia. However, according to some sources, the company has exited the business. wall street journal Article from earlier this year.
From a fundamental perspective, IP ranks among the most undervalued basic industry stocks as it serves a myriad of needs. Believe it or not, old-fashioned paper is still a prized commodity for both business and personal reasons. The company’s packaging business should also flourish thanks to the burgeoning e-commerce industry.
After an artificial spike, e-commerce sales as a percentage of total retail sales have steadily increased since Q2 2022. This should be good news for his IP. Ultimately, the stock is trading at 8.86x. When considering profits, International Paper outperforms his peers at 78%. Therefore, it is one of the undervalued non-tech stocks to buy.
Publication date, Josh Enomoto I had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com. Publication guidelines.
