Many investors are drawn toward stocks with name recognition and high trading volumes. Due to the fact that it is what other investors are participating in. However, available investment opportunities are abundant for investors looking for companies under the radar but still offer impressive returns.
Below are a few companies that offer investors another option than just sticking with the popular companies that consistently have massive amounts of trading. These companies come with little name recognition or the hype surrounding other companies that have seen huge growth from market trends such as generative AI and similar technologies. They are just stocks that have experienced long-term financial stability and growth that have all seen their share price skyrocket this year mostly due to their increase in overall revenue and other similar margins, as well as a much-improved customer base that enables these companies to continue to expand.
Modine Manufacturing (MOD)
Modine Manufacturing (NYSE:MOD), headquartered in Racine, Wisconsin, provides heat transfer equipment primarily for the automotive industry. Its list of products includes air handler units, precision air conditioning units, oil-fired unit heaters, ceiling cassettes, fan walls, condensers, brine coolers, charge air coolers, fan shrouds and battery thermal management products. Modine also supplies products for the agricultural, construction and industrial industries.
The company’s most recent earnings report, released on November 1, stated its total revenue grew by 7% and net income nearly doubled compared to the year before. MOD’s CEO also mentioned the company’s sales dealing with data centers saw a large spike within the same period. That was partly due to its second quarter fiscal year 2024 being more profitable. With much-improved data center sales, Modine Manufacturing raised its guidance for the remainder of the fiscal year 2024 between an additional 6% to 11%.
Year-to-date (YTD), Modine’s stock is up by over 182%, resulting from its improved margins and shift to focus on climate solution technology — reducing overall emissions and improving indoor air quality.
Modine Manufacturing has been performing consistently well throughout this year. It will be interesting to see if this rally continues.
M/I Homes (MHO)
M/I Homes (NYSE:MHO), located in Columbus, Ohio, is a homebuilding company focusing primarily on single-family homes and townhomes in states such as Ohio, Illinois, Florida, Texas, North Carolina and Tennessee. M/I Homes originates and sells mortgages and provides other financial services.
On October 25, the company announced its earnings results for the third quarter of 2023. Total revenue grew by 3%, and net income rose by 6%. Most notably, there was a 50% increase in new contracts compared to the third quarter of 2022. Last month, MHO announced a share buyback authorization increase of $100 million.
The company stock rose by almost 170% over the last year from continued improvement in profitability metrics like revenue and margins. Even with higher-than-usual interest rates affecting mortgage pricing, M/I Homes is still experiencing solid demand for their homes.
Inter & Co (INTR)
Inter & Co (NASDAQ:INTR) is a Brazilian financial management company offering a wide range of banking and assets management products. It supplies customers with deposit assistance, checking accounts, loan services, buying and selling securities and portfolio management. It also operates as an insurance brokerage providing customers with auto, dental, financial and travel insurance.
On November 6, Inter & Co released its earnings results for the third quarter of 2023, showing 39% in total revenue and a boost in its net income by over four-fold year-over-year (YoY). The company saw a jump in overall transactional volume of approximately 41% YoY, 1.6 million customers added in just the third quarter and the total number of clients reached nearly 30 million. That helps reflect why Inter & Co’s stock has almost tripled YTD. The company exceeds in all areas, from revenue to a rapidly growing client base.
As of this writing, Noah Bolton held a long position in MOD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
