With the explosive growth of the internet, it may seem more difficult to find underappreciated stocks to buy. To a large extent, that’s likely true. However, because the masses tend to concentrate their attention on a select few enterprises, several promising names still fly under the radar.
At the moment, thousands of publicly traded companies want to grab a piece of your wallet. However, no nation has unlimited resources. Certainly, Wall Street analysts can’t cover every idea equally. Under this framework, some enterprises simply get left out of the spotlight.
Still, if the stars align just right, the hidden gems can rise to center stage. With that, below are underappreciated stocks to buy.
PHX Minerals (PHX)
Falling under the energy category, PHX Minerals (NYSE:PHX) specializes in the exploration and production (upstream) component of the hydrocarbon value chain. Based in Fort Worth, Texas, PHX operates as a natural gas and oil mineral enterprise. Its primary products are natural gas, crude oil and natural gas liquids.
Fundamentally, the threat of energy supply chain disruptions due to geopolitical tensions and flashpoints could be cynically positive for PHX. That said, the company’s financial performance has been lumpy. Between the second quarter of last year to Q1 2024, the average bottom-line surprise came out to almost 19% below breakeven. Obviously, that’s not a great look.
In the trailing 12 months, net income landed at $4.18 million on revenue of $30.79 million. Analysts project fiscal 2024 EPS of 16 cents on sales of $35.5 million. These are disappointing stats relative to last year’s results of 39 cents EPS on revenue of $44.46 million.
However, fiscal 2025 could see a recovery trek to 30 cents EPS with a top line of $46.04 million. Again, with the geopolitical backdrop, PHX could be one of the underappreciated stocks to buy.
Cadre (CDRE)
Based in Jacksonville, Florida, Cadre (NYSE:CDRE) operates in the industrials space. Specifically, it falls under aerospace and defense. Per its corporate profile, Cadre manufactures and distributes safety solutions that provide protection to users in hazardous or life-threatening situations. One of its main-line products is body armor, including concealable wear and tactical armor.
Unfortunately, circumstances both domestically and abroad call for greater protective equipment for responders and operators. Therefore, CDRE should rank among the underappreciated stocks to buy. Interestingly, outside of a sizable miss in Q1 this year, Cadre has been knocking it out of the park regarding earnings beats. Even with the miss, the average surprise comes out to about 31.48% in the past four quarters.
For fiscal 2024, analysts anticipate EPS of $1.14 on revenue of $569.53 million. That’s a decent improvement over last year’s results of $1.02 EPS on sales of $482.53 million. In fiscal 2025, experts believe EPS could rise to $1.31 with a top line of $605.64 million. Lastly, CDRE holds a Strong Buy consensus view with a $42.17 average price target.
D-Wave Quantum (QBTS)
Based in Canada, D-Wave Quantum (NYSE:QBTS) falls under the computer hardware sector. Per its public profile, the company develops and delivers quantum computing systems, software and services worldwide. Its main-line product is Advantage, an advanced quantum computer. It also offers Ocean, a suite of open-source Python tools.
Quantum computing is very much in its early stages. According to BCC Research, by 2028, the sector could hit a valuation of $6.5 billion. That might not sound like much, but it represents a compound annual growth rate (CAGR) of 48.1% from 2023. Given that D-Wave is a micro-capitalization enterprise, QBTS theoretically has much room to grow.
Over the TTM period, D-Wave posted a net loss of $82.72 million on revenue of $8.76 million. For fiscal 2024, analysts anticipate the company will deliver a loss per share of 34 cents on sales of $12.53 million. That would be a major improvement over last year’s results of a loss of 60 cents with a top line of $8.76 million. For speculators, QBTS ranks among the underappreciated stocks to buy.
On the date of publication, Josh Enomoto 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.
