For many retail investors, it comes down to either buying index funds, mutual funds or exchange-traded funds. Beyond that, the individual investors who go looking for the best stocks to buy come across the stocks that get the most analytical attention. This doesn’t mean, however, that stocks with less analyst attention are not worthy investments.
On the contrary, sometimes the most lucrative stocks to buy are those that fly quietly under the radar while gaining naturally from growing business or improved financial management. Thus savvy investors would be wise to keep an eye out for stocks with strong price-to-earnings ratios and a lack of hype affecting their trading dynamics.
Moreover, keeping a close eye on a company’s products and their relative market performance can give insights into its future trajectory depending on the demand levels of its respective addressable market. As such, here are three sleeper stocks to buy for steady performance and returns.
Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) might not generate the same headlines it used to, but it’s stil a strong buy in the world of tech stocks. That’s because the company has worked hard to stay relevant in the new artificial intelligence-dominated landscape. A major aspect of this push to attract business has been its partnership with Nvidia (NASDAQ:NVDA). The two companies work specifically in tandem to improve CSCO’s Ethernet networking products using native AI infrastructure.
Moreover, Cisco has used its quiet relationship with Nvidia to improve Webex. The company’s video call system now utilizes AI-powered features and cloud computing overlays for virtual desktop functionality.
These improvements have not been enough to improve CSCO’s Q1 results, however, but the new dip in value could be a good buying opportunity before an AI-induced rally. Thus, investors might want to wait for the right moment to put CSCO on their list of stocks to buy.
Janus International Group (JBI)
Specializing in only one product, Janus International Group (NYSE:JBI) has received little attention from analysts. However, JBI’s simplicity proves that a business can find its success by just doing one thing well. That’s because JBI focuses exclusively on the manufacturing and sale of roll-up doors. Thus, its main markets are the self-storage sector which sees steady growth and the shipping market.
Renowned for the quality of its roll-up doors, JBI stock has gone up 36% in the last year. This likely stems from increasing revenue due to renewed demand across the storage and shipping sectors. In my eyes, JBI is one of those stocks to buy and forget about, as its growth acts more like a hedge against inflation thanks to its manufacturing-centric business model. Thus, investors would be wise to give JBI a shot in an increasingly hyped tech market. Just don’t expect tech-like growth.
Textron Stock (TXT)
A notable defense company and aircraft manufacturer, Textron Inc. (NYSE:TXT) has an abundance of high-potential projects. The company recently secured a contract for the U.S. Army’s new tiltrotor helicopter, the V-280. It achieved this through its Bell Helicopter subsidiary which underscores the company’s greatest asset: its portfolio diversity.
Beyond helicopters, its ground systems division recently had its new M5 Ripsaw platform selected for testing by the U.S. Army. While testing can result in anything, including program cancellation, Textron’s reputation as a prime government contractor has boomed over the years.
Furthermore, its ownership of Cessna and Beechcraft remains lucrative, as the company gains exposure to the civil aviation market, including educational ones, and the military. As a result, TXT stock boasts some solid financials, like a price-to-earnings ratio of 18x and 5% net income growth for Q1 2024. Moreover, the company has an exceptionally low price-to-book ratio of 2.37x for the defense and aviation industries.
On the date of publication, Viktor Zarev 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.
