While the broader indices south of the border are trading near all-time highs, there are plenty of undervalued stocks you can buy a discount and benefit from outsized gains over time. The U.S. is the world’s largest economy and home to many fundamentally strong growth stocks. Here are three such stocks where you can invest $10,000 right now.
TransDigm Group Stock
TransDigm Group (NYSE: TDG) is valued at US$76 billion by market cap and produces engineered aerospace components, systems, and subsystems. Its product portfolio includes proprietary aerospace components used in commercial and defence markets.
In the fiscal third quarter (Q3) of 2024 (ended June), TransDigm reported net sales of US$2.05 billion, up 17% year over year. Its net income rose 31 % from US$353 million to US$461 million in the last 12 months. Its adjusted earnings per share rose 24% to US$9, prompting management to increase its full-year guidance.
In the last decade, the large-cap stock has returned over 600% and has gained a whopping 5,560% since late August 2004. Despite its outsized gains, TDG stock trades at 33.9 times forward earnings, which is not too steep, given that adjusted earnings are forecast to rise by 20% annually in the next five years.
Snowflake stock
Down 70% from all-time highs, Snowflake (NYSE: SNOW) stock is valued at US$38 billion by market cap. The cloud-computing stock is down 43% year to date after a change in its chief executive officer position and a massive data breach that spooked investors.
Snowflake shed another 14% following its fiscal Q2 of 2025 (ended in July) results after it reported revenue of US$869 million in revenue, higher than estimates of US$851 million. Its product sales rose 30% to US$829.3 million, below its Q1 growth of 34%.
While investors are worried about Snowflake’s decelerating top-line growth, the company is positioned to benefit from its new generative AI portfolio and core data warehousing business.
Unlike several other growth stocks, Snowflake reports positive cash flow. In the last 12 months, its free cash flow has grown to US$1.21 billion, up from US$161 million in fiscal 2021 (which ended in January). So, priced at 32 times trailing cash flow, Snowflake is quite cheap and trades at a 30% discount to consensus price targets.
Booking Holdings stock
The final stock to own right now is Booking Holdings (NASDAQ: BKNG), a US$130 billion company. In Q2 of 2024, it reported revenue of US$5.86 billion and adjusted earnings of US$41.90 per share, above estimates of US$5.77 billion and US$38.63, respectively. In the year-ago period, it reported revenue of US$5.46 billion and earnings of US$37.6 per share.
Among the largest online travel platforms globally, Booking Holdings offers services such as accommodation reservations, car rentals, restaurant reservations, and flight bookings. Its portfolio of brands includes Booking.com, Agoda, Kayak, OpenTable, and Priceline, allowing it to offer users an integrated travel experience.
The number of room nights booked across its platforms rose 7% to 287 million, while gross travel bookings were 4% higher at US$41.4 billion in Q2.
Booking Holdings aims to leverage AI capabilities to improve operational efficiencies and user experiences, which should translate to higher engagement and sales. Further, its free cash flow has more than doubled to US$7.13 billion in the last 12 months, up from US$3.3 billion in 2021.
