With the advancement of the Internet, you might think under-the-radar stocks might be an obsolete concept. In a way, that’s true. Combined with social media, it’s difficult for any truly viable enterprise to not be talked about.
However, it’s more than possible that Wall Street analysts fail to give compelling companies their fair share of the spotlight. For this article, I’m going to focus on consensus hold ratings. The experts are pensive on these under-the-radar stocks. Here’s why that might be a mistake.
Aurora Innovation (AUR)
Based in Pittsburgh, Pennsylvania, Aurora Innovation (NASDAQ:AUR) falls under the information technology (IT) services sector. Specifically, it operates as a self-driving technology firm. The company’s main product is called Aurora Driver, which is a platform that offers a suite of functionalities. This includes autonomous hardware, software and data services.
As you know, autonomous transportation represents one of the holy grails. Obviously, it’s been a challenging trek and there are no guarantees with AUR stock or any related players. As a result, analysts have rated shares a consensus hold. The assessment breaks down as one buy, one hold and one sell.
For fiscal 2024, experts believe that sales may reach $835,270. That’s nothing in the publicly traded domain. And while 2025 may see an improvement to $17.79 million, context matters. In 2022, the company generated sales of $68 million. A year before that, it rang up $82 million.
Still, by 2026, there’s a possibility that Aurora can generate over $101 million in revenue. By 2028, analysts are hoping for $1.27 billion. A little patience may be needed to convert this candidate for under-the-radar stocks into a massive winner.
Clear Secure (YOU)
Headquartered in New York City, Clear Secure (NYSE:YOU) technically falls under the application software sector. More to the point, it operates a secure identity platform under the Clear brand name. Per Stock Analysis, Clear offers a secure identity platform that consists of front-to-back end infrastructural solutions. Long story short, the company stores biometric data so that you can skip through airport security lines quickly.
That’s a lot of unnecessary word salad to describe this business and that might have contributed to analysts being pensive about YOU stock. All kidding aside, it is a consensus hold, breaking down as two buys, four holds and one sell. At the same time, it’s promising because the average price target stands at $24.29, implying 46% upside potential.
For me, it’s difficult to understand the pensiveness. For the current fiscal year, experts are projecting sales of $754.8 million, up 23% from the prior year. Looking out to the following year, sales could reach $865.78 million, up 14.7%.
Keep in mind that the travel industry is on pace for a full recovery by the end of this year. Thus, YOU ranks among the under-the-radar stocks.
Intel (INTC)
Headquartered in Santa Clara, California, Intel (NASDAQ:INTC) is one of the world’s largest semiconductor firms. Per its public profile, Intel designs, develops, manufactures and distributes computing and related products and services worldwide. On paper and without any other context, INTC stock might seem a winner. However, in the charts, shares tumbled nearly 37% on a year-to-date basis.
Understandably, the volatility makes INTC one of the under-the-radar stocks. However, a comeback is possible. In particular, the company is developing what it calls the Atom C Processor Series. Per the company’s website, this processor family “delivers efficient intelligence and reduced energy demands for a variety of workloads at the network edge.”
Here’s why that’s important. Earlier this year, The Washington Post reported that the nation’s 2,700 data centers have sapped more than 4% of U.S. electric capacity in 2022. Unless companies start implementing sustainability at the product level, this matter could devolve into a full-blown crisis.
It’s a dark horse. However, I believe that the high-side target for the current fiscal year’s revenue of $60 billion is possible.
On the date of publication, Josh Enomoto 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.
