Sometimes, the best stocks to buy aren’t the ones everyone is talking about — it’s the underdog stocks. But those aren’t usually the default go-to’s for most investors, either because they don’t have a ton of confidence in them or they have FOMO for the headline-grabbing stocks.
However, it might take one or two little-known stocks to buy that make all the difference in your portfolio. One way to identify such a stock is if its financials are in shape (or better than average) and what analysts are saying.
Based on those factors, we compiled three little-known stocks to buy that have the potential to dominate the market soon.
Would you take the plunge on them?
Rocket Labs USA (RKLB)
In 2017, aerospace manufacturer Rocket Labs (NASDAQ:RKLB) became the first private company from the southern hemisphere to reach space. The Long Beach, California-headquartered firm shows no signs of slowing down.
It now has a valuation of $2 billion and has completed over 40 space launches. It recently partnered with NASA for its climate change research mission this year.
The company isn’t doing too shabby on the financial front, either. This quarter, it reported revenue of $92.77 million, up 69% year-over-year (YOY), though slightly below the estimate of $94.99 million. RKLB expects to register somewhere between $105 million and $110 million in revenue in the second quarter of 2024.
Also, RKLB’s loss of $0.09 per share is better than the estimated loss of $0.11 per share. Additionally, Rocket Labs achieved a gross profit of $24.17 million, with its gross margin jumping to 26% from 12% YOY growth.
MarketWatch has an average Buy recommendation RKLB stock with 10 Buy ratings, 1 Hold rating and 0 Sell ratings, making it one of the best little-known stocks to buy this year.
Kodiak Gas Services (KGS)
Kodiak Gas Services (NYSE:KGS) is a Montgomery, Texas-based company that provides natural gas compression services for the oil and gas industry.
The company hit the stock market last June to a somewhat lackluster market reception but is now one of the more promising little-known stocks to buy.
As of May 28, KGS stock has an average Buy recommendation, with seven Buy ratings and one Hold rating.
This year, Kodiak Gas Services revenue reached $215.5 million, up 13% from 2023’s first quarter. It also reported a net income of $30.2 million, a significant improvement from a $12.3 million loss in quarter one of 2023.
KGS shareholders can expect to receive $1.52 per share this year, following the company’s declaration of a $0.38 cash dividend.
Procore Technologies (PCOR)
Procore Technologies (NYSE:PCOR) builds software for construction companies.
Its construction app helps streamline construction efforts so everyone in the project, from constructors to owners to managers, is on the same page about the process.
Right now, Procore’s fundamentals look great. It raked in $269 million in revenue this first quarter, an uptick of 26% compared to last year. That momentum will likely carry over into the second quarter, during which the company projects revenue of up to $274 to $276 million. That will be another 20% plus YOY jump.
Moreover, the company’s free cash inflow — money left over after operating expenses — doubled from last quarter. It reached $58 million in 2024’s first quarter, up from $29 million in the previous quarter.
It also helps that analysts are bullish on PCOR stock. Currently, it has 12 Buy ratings and 0 Sell ratings on MarketWatch. These fundamentals make PCOR a strong pick if you’re looking for little-known stocks to buy.
On the date of publication, Hope Mutie did not hold (either directly or indirectly) any positions in the coins mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.