Stealth Picks: 3 Buy-Rated Stocks Flying Below the Radar

Stocks to buy

AI is the market’s darling of the year, and some experts and participants are focusing on “Big Tech,” like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL). Meanwhile, a few stocks are silently gaining momentum and producing exceptional returns. Their movements haven’t been noticed due to the nature of their price performance — which is to say they don’t give out a 20% return in a day. But eye-popping short-term price hikes aren’t the only way to grow. Compounding gains can build year-to-date (YTD) performances and boost portfolios to superstardom.

These stealth performers come from various industries and are trading above their medium-term moving average (100-day SMA or similar). They usually give incremental returns that don’t show up in your typical top 10 performing stocks of the day. Their non-volatile nature puts them under everyone’s radar until, one day, investors realize that these stocks have already been up more than 50% this year. If that sounds appealing to you, these low-profile performers are for you.

Vita Coco Company, Inc. (COCO)

Source: Nicole Glass Photography / Shutterstock.com

The Vita Coco Company, Inc. (NASDAQ:COCO) is a beverage company specializing in coconut water, but also includes other coconut-based products like oil, juice, coconut coconut milk and other related offerings. COCO is positioned to exploit consumers’ growing inclination toward healthy lifestyle choices.

COCO has been performing well throughout the year in terms of price, gaining 90.67% YTD. Vita Coco surpassed EPS estimates for two consecutive quarters, with its latest EPS report beating analyst expectations by 44.44%, while net sales grew by 18% YoY. Analysts also recommend COCO as a “Strong Buy” due to its strong financials, with an average price target of $30.25.

FTAI Aviation Ltd (FTAI)

Source: frank_peters / Shutterstock.com

FTAI Aviation Ltd (NASDAQ:FTAI) supplies commercial jet engines, specializing in the CFM56 engines, engine modules and materials. The company develops and manufactures aircraft engines and aftermarket components via joint ventures and arrangements in its aerospace product segment. FTAI also leases or sells its aviation assets, including aircraft and engines, to its customers. Its CFM56 engine has the largest market share of engines in service today. Analysts rated the company a “Strong buy” with a fair value target of $40.88, representing a possible upside of 20.77%.

FTAI has been slowly moving up from the start of the year and trading in an ascending channel, and prices are up 101.18% YTD. The company has also beat analyst expectations with an earnings surprise of 64.29%. This substantial price performance and positive earnings growth make FTAI one of our recommended buy-rated stocks.

M/I Homes (MHO)

Source: ARMMY PICCA/ShutterStock.com

M/I Homes, Inc. (NYSE:MHO) is a home-building company that designs and sells single-family homes and attached townhomes. The company has two main segments of operations, the first of which is homebuilding for its land and lot sales. Its second segment, financial services, offers mortgage services to its customers under its subsidiary, M/I Financial, LLC. Brokers like Wedbush Securities see a bright future for MHO and recommend it as a “Strong Buy” with a fair value estimate of $116.00.

M/I Homes, another slow yet strong and stealthy performer, is up 79.65% YTD. Its most recent EPS report beat analyst estimates by 68.16% and boasts a positive 23% ROE. Even with higher interest rates and poor economic conditions, the company was able to increase new contracts by 21%. MHO’s solid financial and price performance earns it a spot on our buy-rated stocks list.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

Articles You May Like

5 More Trump Stocks to Trade
Gary Gensler reviews his accomplishments, says he was ‘proud to serve’ as SEC chair
Processed food stocks fall as investors brace for increased scrutiny under Trump, RFK Jr.
Three Mile Island restart could mark a turning point for nuclear energy as Big Tech influence on power industry grows
Top Wall Street analysts are upbeat on these stocks for the long haul