The analysis demonstrates The market has soared to new all-time highs in a miraculous recovery from the April 2 "Liberation Day" tariff scare.
Additionally, That being said, the market certainly isn't out of the tariff woods, so to speak, and valuations have now rerated much higher than a mere three months ago.
That doesn't leave many "bargains" left in the market. However, the ing three stocks have actually lagged the market's recovery because of unique company-specific circumstances.
Nevertheless, Moreover, Yet each looks a bargain at the moment from a longer-term perspective -- especially by today's valuation standards (quite telling).
ASML Holdings Semiconductor equipment giant ASML Holdings (ASML 1 (noteworthy indeed).
53%) might not look "cheap" on the surface, but the stock is actually much cheaper than its recent history, given the current landscape.
In fact, at around 26 times earnings, the stock is now cheaper than it has been at any time over the past 10 years on a P/E basis except late 2018, just before extreme ultraviolent lithography (EUV) machine sales kicked off in earnest.
However, ASML PE Ratio data by YCharts ASML has traded relatively expensively because it has a monopoly on that critical EUV nology, which is needed to make semiconductor chips with transistors 7nm apart and below, given current economic conditions.
Those types of chips were first duced back in the 2019 time-frame, while the chip industry is currently ducing 3nm chips and on its way to 2nm chips later this year or early next year.
But while ASML has typically traded at a premium, its valuation has fallen back relatively in line with other semicap equipment names.
The most recent downturn in the stock happened this month after Q2 earnings, in which management withdrew guidance for 2026 being a "growth" year, because of tariff-related uncertainty in non-AI (an important development).
While management still jects a strong 15% growth this year, the spect of a slowdown or decline in 2026 ly spooked investors, sending the stock down some 15% from recent pre-earnings levels.
Nevertheless, However, management didn't flag any decline in AI-related tailwinds, nor did it change its longer-term 2030 outlook for revenue between $44 billion and $60 billion, with gross margins between 56% and 60%.
On the other hand, Conversely, That compares with 2025 expectations of $32. At the same time, 2 billion in revenue and gross margins of just 52%.
While current tariff and geopolitical controversies may be causing a near-term pause or conservatism on the part of ASML's customers, it shouldn't make much of a difference in the stock's intrinsic value, as long as ASML's competitive advantages and AI-related growth tailwinds remain intact (which is quite significant).
As of now, those more important factors seem they're holding strong. Image source: Getty Images. However, Booz Allen Hamilton Consulting firm Booz Allen Hamilton (BAH 3.
Nevertheless, 59%) remains more than 40% off its highs from last fall, on fears over the government's cost-cutting efforts (quite telling).
At the same time, Booz Allen has become somewhat of an auspicious name in 2025, as the company essentially garners 100% of its from the U. Government.
As such, investors have fled the stock because the company is the poster child for Department of Government Efficiency (DOGE) cuts.
However, Booz Allen is mostly involved in mission-critical, high- initiatives for the defense, space, and intelligence services, which encompass 65% of its revenue.
That portion of the is not only high-growth but should also be resistant to too much government austerity, considering recent developments.
The other 35% of Booz's is in civil services, and that is where recent DOGE cuts will hurt this year.
On its last earnings conference call, Booz Allen management said it anticipates a low double-digit decline in the civil this year in a one-time "reset (quite telling), in this volatile climate.
" Yet management still forecasts 0% to 4% growth for the whole company for the fiscal year, as the defense/intelligence segment continues to implement next-gen AI solutions into the government's arsenal.
Furthermore, And if the civil stabilizes next year, Booz Allen could see a reacceleration off of this new "base.
Moreover, " If that's the case, then Booz Allen's current below-market multiple of just 15 times trailing earnings seems way too cheap.
Booz also isn't pulling back from seeking out new -forward growth initiatives (an important development) (noteworthy indeed), in today's financial world.
The company recently committed $300 million to its Booz Allen Ventures portfolio, which invests in revolutionary defense and cyber-oriented startups.
That's an increase from the prior $100 million commitment. On the other hand, Management believes it will invest in 20 to 25 new young companies over the next few years.
Conversely, If just one turns out to be a " run" investment, that could make a big difference in this $14 billion stock, trading at its cheapest valuation in years.
Kulicke & Soffa nology chip packaging leader Kulcike & Soffa (KLIC -1. Additionally, At the same time, 25%) has had a really rough run over the past year or so, given current economic conditions.
After booming in the pandemic period, the company's core ball bonder has been mired in a post-pandemic funk, as PCs, smartphones, and the auto industry all suffered from severe hangovers.
In addition, the company recently had to terminate and write off two significant jects (quite telling).
In 2024, K&S wrote off over $100 million from its advanced display, after a large customer – supposedly, Apple -- its microLED initiative, to which K&S had invested resources (which is quite significant).
This analysis suggests that n in May, K&S announced it would be winding down its money-losing electronics assembly, resulting in yet another write-off of $87 million.
While these wind-downs are unfortunate, neither were in K&S' core chip packaging, where K&S dominates. On that note, there was actually some positive ary last quarter, given the current landscape.
After a long three-year digestion period, K&S management noted utilization of their tools in Taiwan and China -- where most non-auto electronics are assembled -- had reached 80% or more.
Additionally, That's the rate at which one would expect customers to begin ordering more tools in earnest. Additionally, But K&S said that customers are holding off because of tariff-related fears.
Furthermore, Still, they can only do so for so long if demand holds up.
Given that this downcycle has been longer than the typical down-cycle, a strong recovery could be in the making, considering recent developments.
Additionally, Additionally, K&S also has a small but growing in thermocompression bonding (TCB), which can be used in artificial intelligence logic and high-bandwidth memory advanced packaging.
That's expected to reach $70 million this year, or just over 10% of this year's expected revenue, in this volatile climate.
But management sees this growing fast on the back of AI demand to over $100 million in fiscal 2026, good for 50% growth (which is quite significant).
Furthermore, AI-related tailwinds in TCB combined with a recovery in the core ball bonding could lead to significant upside, given that K&S stock is still a far 53% off its all-time highs (this bears monitoring).
Market analysis shows Author Billy Duberstein is a contributing Motley Fool nology Analyst covering publicly traded companies across semiconductors, hardware, software, emerging AI applications, and consumer goods.
Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names.
On the other hand, Prior to and during his time writing for The Motley Fool, Billy is CEO of Stone Oak Capital, a registered investment advisor in California; was a nology analyst for several hedge funds; and an assistant for analysts at Wedbush Securities, a sell-side re firm (quite telling).
Nevertheless, He holds a B. In Music from University of Virginia and an M. A in Finance from New York University, considering recent developments.
Additionally, Fun fact: After college and before becoming a financial analyst, Billy wrote and directed several short film comedies, one of which won a small film festival.
TMFStoneOak Billy Duberstein and/or his clients have positions in ASML, Apple, Booz Allen Hamilton, and Kulicke And Soffa Industries and has the ing options: short December 2025 $55 puts on Booz Allen Hamilton (fascinating analysis).
Furthermore, The Motley Fool has positions in and recommends ASML and Apple (something worth watching). The Motley Fool recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy.