As the market hovers near its all-time highs, it's tempting to sit on your cash and wait for a downturn before buying more stocks. That might be the prudent move, but there are still plenty of stocks trading at a discount to the broader indexes and their industry peers.
Let's take a look at three of those stocks: ChargePoint Holdings (CHPT 4.06%), Intuitive Machines (LUNR 3.76%), and BYD (BYDDY 3.63%). These three companies have tremendous growth potential, but their valuations are being compressed by some near-term challenges.
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1. ChargePoint
ChargePoint is one of the largest builders of electric vehicle (EV) charging networks in the U.S. and Europe. It manages more than 352,000 EV charging ports (over 35,000 of which are DC fast chargers), and it provides its customers with access to over 1.25 million additional charging ports across the world through its roaming partnerships.
Unlike Tesla, which owns and operates its own Supercharger network, ChargePoint helps businesses set up their own charging stations and set their own rates. It also provides residential charging systems for homes and apartments.
ChargePoint's growth stalled out in fiscal 2025 (which ended in January) as high interest rates, a chilly EV market, and tough macro headwinds forced many of its potential customers to postpone their installations of new EV charging ports. It cut costs and launched new dynamic pricing plans to preserve its margins, but its stock still stumbled.
From fiscal 2025 to 2028, analysts expect its revenue to grow at a CAGR of 19% as the macro environment warms up again. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in the final year. That's an incredible growth rate for a stock that trades at less than one times this year's sales -- and it could bounce back quickly as the EV market stabilizes and recovers.
2. Intuitive Machines
Intuitive Machines produces lunar landing and exploration vehicles for NASA. It's already sent two of its Nova-C landers to the Moon so far: its IM-1 (Odysseus) lander last February (which marked the first successful U.S. Moon landing since 1972) and its IM-2 (Athena) lander this March. Both of those missions encountered some technical issues, but NASA still awarded Intuitive with additional contracts to complement its core lunar lander contract.
Intuitive Machines plans to launch its next lunar lander, IM-3, in 2026. It's also developing a lunar satellite constellation through its near-space networks services (NSNS) contract with NASA, and it's expanding its commercial "ride-sharing" business that will enable other companies to deliver their own payloads to the moon on its landers.
From 2024 to 2027, analysts expect Intuitive's revenue to grow at a CAGR of 26% as its adjusted EBITDA turns positive in the final year. But it still looks like a bargain at three times next year's sales -- and it could command a much higher valuation if it successfully lands the IM-3 next year and secures more contracts from NASA.
3. BYD
BYD is China's largest automaker. It was originally a battery maker, but it started to produce its own vehicles more than two decades ago. It launched its first battery-powered EV in 2009, and it eventually phased out its gas-powered vehicles to become a dedicated EV maker.
It manufactured its own batteries, motors, chips, and power electronics to reduce its production costs and avoid supply chain bottlenecks. It claims its own lithium iron phosphate (LFP) batteries are safer, cheaper, and more power-efficient than traditional lithium ion batteries.
BYD's annual vehicle sales soared tenfold from 427,302 units in 2020 to 4,272,145 units in 2024, and it eclipsed Tesla as the world's largest EV maker. It leveraged its scale and vertical integration to its production costs, and it slashed its prices to grow its market share.
JPMorgan expects BYD's annual vehicle sales to rise another 29% to 5.5 million units in 2025 and 18% to 6.5 million units in 2026. From 2024 to 2027, analysts expect its revenue and adjusted EBITDA to grow at a CAGR of 19% and 16%, respectively. It's also consistently profitable on a generally accepted accounting principles (GAAP) basis.
BYD's future looks bright, but its stock trades at just one times this year's sales. Its valuation is being compressed by the near-term concerns about the unpredictable tariffs and trade wars, but it could bounce back quickly once those headwinds wane.
