Finding undervalued breakout stocks in today’s market can be quite a task. Most top-tier blue-chip and long-term investment opportunities, such as Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), are already well-known and heavily purchased.
However, as concerns grow about the concentration of investments in a few mega-cap stocks, demand for breakout stocks is increasing. These breakout stocks may not remain so for long and will instead likely turn into the next big media story of runaway growth and strong upward momentum.
Despite the current economic uncertainty, some promising breakout stocks offer a blend of growth, stability, and income. These stocks span various market caps and sectors and could provide significant returns and diversify your portfolio. While no investment comes without risk, these under-the-radar breakout stocks have strong potential to become standout performers in the years ahead.
Atlanta Braves Holdings (BATRA)
You don’t need to be a billionaire to own a stake in a sports team. By investing in breakout stock Atlanta Braves Holdings (NASDAQ:BATRA), you can claim a slice of this iconic Georgian sports franchise. Listed in July 2023, this stock provides investors access to the Braves’ sales revenue and income from the associated real estate assets within the Braves ecosystem.
If you’re looking for high-profile endorsements, just look at some of the company’s major shareholders. Among the backers of Atlanta Braves Holdings is Warren Buffett, who holds a position in this firm as part of his broader investment in SiriusXM Holdings (NASDAQ:SIRI). The Braves’ former owner, Liberty Media (NASDAQ:LSXMA), is currently in a high-profile merger with SiriusXM. Buffett’s interest in this unique investment ecosystem is a strong endorsement. Additionally, legendary value investor Mario Gabelli is a fan of the stock, predicting that shares could reach $55 in the coming years.
Despite overall market challenges, Atlanta Braves Holdings stands out as a potential home run for investors seeking unique opportunities in the sports and entertainment sectors.
Rocket Lab USA (RKLB)
Rocket Lab USA (NASDAQ:RKLB) stands out as more than just a unique breakout stock — it represents a gateway into the burgeoning trillion-dollar space industry. Last year, Rocket Lab gained significant attention with a record-setting number of launches. This year, the company continues to impress with a substantial government contract worth over $500 million and a strong earnings report.
Rocket Lab’s current launch and contract backlog exceeds $1 billion, providing a promising forecast for potential revenue, even though clients may cancel. With first-quarter revenue hitting $92.7 million, this backlog indicates considerable growth opportunities.
Further cementing its position in the global space sector, Rocket Lab recently secured a deal with Japanese company Synspective for 10 Electron launches through 2027. This partnership highlights Synspective’s trust in Rocket Lab’s capabilities as a space-based operator and delivery system for its satellites. While the financial terms were not disclosed, the agreement underscores Rocket Lab’s growing role in the space industry, making it a breakout stock with substantial future potential.
Getty Images (GETY)
Getty Images (NYSE:GETY) is an often overlooked breakout stock with significant potential, especially given its unique position in the artificial intelligence sector. Known for its extensive library of stock photos and journalism photography, Getty serves many clients, including creatives, media companies and corporate marketing teams. However, what truly sets Getty apart is its innovative collaboration with Nvidia (NASDAQ:NVDA), making it an intriguing AI stock to watch.
Earlier this year, Getty introduced a generative AI image creator powered by Nvidia. This tool simplifies creating customized images for professionals and amateurs, offering a more user-friendly experience than other platforms like Midjourney’s Discord-based service. More importantly to publishers, Getty’s tool also includes robust legal protections for users, addressing growing concerns about copyright issues in AI, as evidenced by ongoing legal battles involving companies like OpenAI.
Despite a slight decline in sales and income in its latest earnings report, Getty saw a significant rise in subscription rates, which now make up 55.4% of its net revenue. This growing subscription base will expand further as Getty’s AI-driven services become more widely adopted. This positions Getty Images as an undervalued stock with promising AI potential, making it a strong candidate among low-priced stocks with upside.
Parsons (PSN)
Parsons (NYSE:PSN) is a defense technology company with a diverse portfolio that positions it as one of the more under-the-radar breakout AI stocks. Unlike companies focusing primarily on software, Parsons integrates AI into hardware-centric technological developments, setting it apart in the industry.
Parsons has achieved notable milestones in ballistic missile site development, rocketry hardware, nuclear site management, and large-scale infrastructure projects. These operations demand sophisticated technical data management and oversight, allowing Parsons to lead with AI solutions that enhance its hardware capabilities. This makes Parsons a key player in AI-enabled defense technologies, an area likely to gain more attention as political campaigns bring defense issues to the forefront.
Additionally, Parsons is expanding its use of AI with innovative drone solutions for infrastructure inspection. These AI-driven tools transform how bridges, roadways, and water treatment facilities are evaluated, making the process more efficient and thorough. As the U.S. faces growing infrastructure challenges, Parsons’ ability to deploy AI to address complex and hazardous environments makes it an essential player in the field, offering significant potential for growth and innovation.
Photronics (PLAB)
Photronics (NASDAQ:PLAB) is a small but powerful player in the tech sector with significant growth potential. Unlike typical semiconductor stocks, Photronics focuses on semiconductor photomasks, an advanced technology with substantial future implications.
Photronics’ photomasks are vital for precision in microchip manufacturing, enabling the development of artificial intelligence and quantum computing through increasingly complex and precise circuitry. These photomasks are essential for shrinking transistors and components, driving Moore’s Law’s progress. This strategic positioning at the intersection of precision and cost-effectiveness places Photronics at the forefront of current and emerging technologies, making it a compelling pick among under-the-radar tech stocks.
Valued at just 12x earnings, Photronics offers an attractive entry point for investors. Its steady income stream reflects solid financial health, and despite being relatively young in the semiconductor industry, the company is poised to benefit significantly from the expanding use of semiconductors across various sectors.
PSQ Holdings (PSQH)
For those interested in fairly speculative investments, PSQ Holdings (NYSE:PSQH) is a unique breakout penny stock trading around $3.50 per share with a market cap of approximately $110 million. Despite its small size, this company is positioned at the cutting edge of emerging e-commerce trends that could significantly impact the market in the coming years.
PSQ Holdings’ flagship platform is the digital marketplace PublicSquare, which emphasizes helping consumers “shop their values” by aligning purchases with personal beliefs and ethics. While the company’s conservative ethos might initially stand out, the broader concept behind PublicSquare transcends political affiliations. The platform taps into a growing desire among consumers to support businesses that reflect their values and principles.
In today’s fragmented social media landscape, people often find themselves within like-minded networks or echo chambers. This trend extends to shopping habits, with a rising preference for e-commerce platforms that align with personal values. PublicSquare meets this demand by offering American-made goods, starkly contrasting the declining quality of many overseas products found on giants like Amazon (NASDAQ:AMZN).
Nintendo (NTDOY)
Nintendo (OTCMKTS:NTDOY) consistently makes my list of breakout stocks, and for good reason. The Japanese company exemplifies a business model that stands apart from many American public companies. Instead of focusing on short-term gains, Nintendo takes a long-term approach, prioritizing sustainable growth over immediate profits. This strategy, perhaps, is why Nintendo has been a resilient player in the market since its founding in 1889 as a playing card company.
A look at Nintendo’s balance sheet underscores its commitment to long-term stability. The company maintains a robust cash reserve and carries no debt, providing a solid financial foundation to navigate economic fluctuations and seize new opportunities. This financial strength is so compelling that Microsoft considered acquiring Nintendo in 2020, recognizing its value as a prime low-priced stock with significant potential. Although the acquisition didn’t materialize, Microsoft’s interest highlights Nintendo’s enduring appeal in the market.
Recently, Nintendo has also capitalized on its extensive intellectual property, opening new revenue streams that further enhance its position as a smart investment. The company’s prudent financial management and innovative approach ensure it remains a standout in the gaming industry, making it a compelling choice for investors seeking both value and growth.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held LONG positions in AMZN, AAPL and NVDA.