Figuring out what is going on in the bustling stock market can be quite challenging for investors. With big names stealing the spotlight, it can be hard for sleeper stocks to find their way to the portfolios of investors.
Sleeper stocks are quietly lurking amid all of this financial commotion. They are often undervalued and overlooked, and the right ones ought to reward investors willing to invest in them. These rewards can also come with high risks, which is why many investors are reluctant to invest in sleeper stocks. Additionally, most investors don’t know where to look for the perfect sleeper stock primed for a great future. Well, that’s what this article is for. This writing will review a compiled list of three undervalued sleeper stocks that investors should consider to boost and fortify their financial portfolios.
Textron (TXT)
Textron (NYSE:TXT) is a prominent American aerospace defense company recognized for its wide range of products and services. The company is currently trading at $79.60, with Yahoo Finance analysts projecting a one-year price range of $69.00 to $102.00, with an average target price of $87.00.
Textron shares have been on a dip ever since the pandemic, but that trend has turned around, with the company’s stock value increasing nearly 14.90% over the last year. Additionally, Textron has a P/E ratio of 17.21x, significantly lower than its industry peers’ average of 35.1x, displaying its good, steady financial performance.
Textron is actively engaged in the Bell 360 Invictus’ development, an attack helicopter for the U.S. Army. Textron also introduced the Cessna Citation CJ3 Gen2. These projects show Textron’s ongoing contribution to the development of defense and aerospace technologies.
Textron, though potentially overlooked by investors, presents a compelling investment opportunity for future growth, given its diverse portfolio and significant role in the aerospace and defense sectors.
Albemarle (ALB)
Albemarle (NYSE:ALB) is a prominent U.S. chemicals manufacturing company specializing primarily in pioneering highly specialized lithium solutions. Yahoo Finance analysts estimate it will trade within a one-year price range of $90.00 to $327.43, averaging around $189.14.
Albemarle’s revenue growth increased by a solid 179%, rocketing from its average 5-year growth of 27.45% to its current year-over-year (YoY) growth of 76.67%. Additionally, Albemarle Corp’s P/E ratio TTM proves that even though the company is growing substantially, it still remains undervalued. Its P/E ratio non-GAAP is 5.03x while the sector holds at 14.81x, a 66% decrease to the sector.
Mineral demand for use in electric vehicles and battery storage will only go up as we transition into a more cleaner, sustainable future. That’s especially true of the demand for lithium, predicted to grow by over 40 times by 2040. As one of the largest providers of lithium for electric vehicle batteries in the world, Albemarle will benefit, making it a great choice as a sleeper stock worth buying now.
Comerica (CMA)
Comerica (NYSE:CMA) is one of the 25 largest U.S. financial holdings and services companies with a commitment to supporting small business customers and helping them grow their businesses. Yahoo Finance analysts estimate it will trade within a one-year price range of $45 to $70, averaging at $51.33.
When looking at some of Comerica’s financials and valuation, even with the valuable growth increase, the company still appears to be undervalued. Its P/E ratio non-GAAP (TTM) of 6.20x is about 37% lower than the sector median of 9.92x, showing the company’s worth has not yet been recognized. The current revenue growth of 14.04% is also nearly 115% higher than the sector median of 6.53%, showing how Comerica is able to surpass most of the companies in the financial services sector.
Throughout this year, Comerica debuted new digital solutions to aid small businesses. For example, Comerica Small Business Convenient Capital is a fully digital, end-to-end new lending platform providing convenient access to capital and benefits. Overall, it has supported over 15,000 small businesses and makes a great choice for your portfolio.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (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.
