As investors buy from tech giants like Nvidia, many other compelling opportunities exist for those looking for growth. Driven by innovation, revenue growth, and an enviable market position, each of these 3 underappreciated stocks offers investors a unique opportunity for profitability. All of them have shown clear signs of potentially growing by double-digit growth in the next few months.
These stocks have been overlooked in an environment of modest gains in anticipation of the upcoming economy. However, looking closely at their fundamentals reveals they are going for a massive discount. By taking a closer look at these three stocks, you may discover intrinsic discounts that position them as a strategic investment for future growth.
While success is not assured, and some extra risk might be involved, the possible reward from holding a stake in these underappreciated stocks will be worth it. Let’s take a closer look at them and why they hold so much promise for stock investors.
Intuit (INTU)
Intuit (NASDAQ:INTU) has a global presence, offering financial management and compliance solutions to individuals, small businesses, accounting professionals, and consumers. It is behind well-known products like QuickBooks, Credit Karma, and TurboTax Live. With a current market cap of $182.13 billion, the stock has risen 10.76% this year.
Dividing deeper into why it is one of the most underappreciated stocks, in its third quarter fiscal 2024 results, Intuit reported revenue of $6.7 billion, a 12% increase from last year. For the full year, Inuit expects revenue to grow by around 13%, up from its previous guidance of 11%-12%.
Its Small Business and Self-Employed segment, which is the primary source of revenue, is expected to grow by around 18% to $9.467 billion to $9.481 billion. It represents a significant increase from the previous forecast of 16% to 17% growth.
The company’s net income rose significantly in the third quarter to $2.4 billion compared to $2.1 billion the previous year.
With robust earnings growth, revenue expected to grow by nearly 12% this year, and $4.5 billion in cash from operating activities in the past nine months, analysts are optimistic about the stock. Its strong cash position and recent moves to incorporate AI into its services give it an edge in its sector.
Analysts give it an average price forecast of $706.09, a 7.60% upside compared to its most recent price of $668.75. The most optimistic give it a price forecast of $770.00, representing a 17.34% upside.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is an emerging force in the data analytics industry whose solutions serve government agencies and major companies.
In the first quarter of fiscal 2024, Palantir reported revenue growth of 21% year over year to $634 million. Revenue from government agencies grew 16% year over year to $335 million, with a majority of that coming from US government agencies at $257 million.
Revenue from commercial companies grew 27% year-over-year to $299 million, with most of it coming in from US-based companies at $150 million. The company also reported that its remaining deal value (RDV) grew 74% year-over-year, while its customer count increased 42% year-over-year.
With a strong cash position and robust commercial and government operations momentum, Palantir seems destined for growth. It can grow revenue from its current clients while attracting new ones. With the company cranking out new AI products, its profitability and customer base continue expanding, driven by growing interest in AI products.
Gilead Sciences (GILD)
Gilead Sciences (NASDAQ:GILD) is a leader in the biopharmaceutical industry. Its intense focus on developing and commercializing innovative treatments has created a huge portfolio of treatments. It now covers everything from inflammatory illnesses to cancer.
Moreover, the company continues to play a leading role in HIV treatments. Thus, its products in this sector remain a stable source of revenue while providing growth opportunities. Its massive growth potential makes it one of the underappreciated stocks an investor should look into.
It has numerous treatments in the pipeline, including those for liver diseases, hepatitis, oncology, and HIV. Should these succeed in reaching the market, they will also drive revenue growth.
In its first quarter fiscal 2024 results, Gilead Sciences reported year-over-year revenue growth of 5% to $6.7 billion. It also reported $2.2 billion in cash from operations in Q1 and returned $1.39 billion to investors via a combination of dividends and share buybacks. For the full year, the company forecast sales of $27.1 to $27.5 billion.
Analysts forecast a price of $82.68 per share for GILD stock, an upside of 20.88% compared to the most recent price of $66.69. The most optimistic forecast is a price of $105.00, a 53.51% upside.
On the date of publication, Joel Lim 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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.