The earnings season has helped the stock market move out of a slump. However, with several companies yet to report earnings, we could expect a market rally in the short term. A lot depends on the inflation report and the Fed’s decision, but if you are a long-term investor, you already know that the market always goes through ups and downs. While one cannot time the market, smart investors can pick low-profile stocks that have the potential to outperform the market.
I have picked three stocks that could generate solid returns in the long run. These are well-known companies but not covered by the news or investors as much as they should. The three stocks have the potential to soar higher and generate impressive returns if you have the patience to hold on to them. Let’s take a look at the three low-profile stocks to buy.
SoFi Technologies (SOFI)
I have been pounding the table about SoFi Technologies (NASDAQ:SOFI) throughout the last quarter, and the recent financial results have proved that the company is in a very strong position. SoFi reported a 44% rise in member growth and a net income of $88 million. It saw a revenue of $645 million, marking the second quarter of profitability.
However, the market wasn’t happy with the second-quarter revenue guidance, which led to a stock dip. SoFi gave a lower-than-expected quarter guidance and called 2024 a ‘transitional year’ for the business. It aims to rely more on the growth of its financial and tech segment than lending.
It added 622,000 new members in the quarter; its total members now stand at 8.1 million. The company has raised the sales outlook for the full year to $2.39 billion to $2.43 billion, up from $2.3 billion to $2.4 billion.
Despite beating estimates, the stock slid and is now trading for $6.78. It has dropped 29% year-to-date, and the plunge is a buying opportunity. The long-term prospects of SoFi look attractive, and can potentially double your money.
The digital bank appeals to the younger demographic, and it has the potential to expand profits in the coming years rapidly. Since it is an online bank, it can lower overhead costs and make the most of the revenue growth. The stock has been on a rough ride for the past few months, so investors need to remain patient.
Palantir Technologies (PLTR)
Tech company Palantir (NYSE:PLTR) is set to report results on May 6. Here’s why you should buy the stock before earnings. Palantir was used for only working for the government, but it now has a wide umbrella of government and commercial clients. The company has turned profitable and has an enviable clientele.
Exchanging hands for $21 today, the stock is up 32% year-to-date and had soared 19% after the fourth-quarter results. The upcoming results could lead to another rally. Its Artificial Intelligence Platform (AIP) has led to a surge in revenue and attracted new clients. Its commercial segment revenue grew 70% YOY in the fourth quarter and reported a record-high commercial contract value in the fourth quarter of $699 million.
AIP has become a huge hit in the market, and its boot camps have helped convert leads into clients. Indeed, AIP has led to high commercial client growth, where it saw a 35% YOY rise to 497. I expect the same to continue throughout this quarter.
Palantir is slowly becoming a global leader with a strong presence in the thriving AI industry. This low-profile stock could outperform the market in the next two years. It has taken a while for PLTR stock to reach where it is today, and patient investors have already made significant gains.
We do not expect an immediate upside, but there could be a rally after the results. The stock is Cathie Wood’s favorite for a reason, and the expectations for the upcoming results are high. With momentum on Palantir’s side, investors should be ready for a ride.
Celsius Holding (CELH)
Celsius Holdings (NASDAQ:CELH) is a sports beverage company with another low-profile stock up 20% YTD. The company is on a global expansion spree and impressed investors with its fourth-quarter results.
It saw an impressive 95% YOY surge in revenue for the quarter and a 102% revenue growth for the full year. Additionally, it reported a net income of $39.1 million in the quarter compared to the net loss reported in the same prior year.
The increasing awareness of health-conscious drinks and the rising demand for healthier sports beverages has boosted Celsius Holding, and I believe this is only the beginning.
The company has a presence in the global markets but only holds a 5.9% market share. This means there is ample scope for expansion in the industry. The international revenue was up 52% YOY, and further expansion could accelerate growth.
It already has plans to expand in Australia and New Zealand. One big reason to own the stock is the changing preferences towards healthy beverages. This trend will continue to dominate the market in the coming years, and Celsius Holding will benefit from it.
Trading at $71 today, the stock is up over 100% in the year. It has gone from $34 last May to $71 today. My InvestorPlace colleague Marc Guberti thinks Celsius Holdings can double your money in a year. The company is set to report results on May 7.
On the date of publication, Vandita Jadeja 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.
