3 Top Stocks with More Than 11% Decline in 2024 That Are Great Buys for August

Shares in ON Semiconductor (NASDAQ: ON), advanced materials company Hexcel (NYSE: HXL), and design and test solutions company Keysight Technologies (NYSE: KEYS) have not performed well this year, with all three stocks down between 11% to 15% at the current time. However, this could present a buying opportunity as they are currently undervalued. Here’s why.

ON Semiconductor, Challenges and Growth

Despite expecting challenging markets in 2024, ON Semiconductor’s management remains optimistic about long-term growth and is investing in the business accordingly. The company faces near-term headwinds due to its heavy exposure to weak automotive and industrial end markets, but it is making strategic investments to support future growth, such as building a SiC manufacturing facility in Europe. While Wall Street expects a decline in sales for 2024, the company’s recent revenue guidance suggests a sequential improvement and potential growth in 2025. With an attractive valuation of 18.4 times expected 2024 earnings, ON Semiconductor looks like a promising value stock.

Hexcel’s Growth Potential

Hexcel’s sales have been impacted by delays at Boeing and Airbus, leading to a reduction in revenue guidance for 2024. However, the company is poised for long-term growth as airplane production ramps up, increasing demand for its advanced composites. With a strong order backlog and the increasing use of composite materials in newer planes, Hexcel’s revenue per plane is expected to rise in the future. The current dip in share price presents an opportunity to invest in a company with excellent long-term growth prospects.

Keysight Technologies

Keysight Technologies provides hardware, software, and services to help customers in their product development process. The company’s growth is driven by the increasing complexity of electronics solutions and customers’ investments in research & development. Despite facing challenges in 2024, including a pullback in R&D spending, Keysight remains optimistic about its long-term growth potential. With an expected annual growth rate and margin expansion, Keysight is positioned for double-digit earnings growth in the future. Trading at slightly less than 23 times expected 2024 earnings, Keysight presents an opportunity for investors.