A cadre of quietly thriving companies has been making significant strategic strides in a market where giants often grab the spotlight. These under-the-radar stocks are positioning themselves for a remarkable breakthrough by 2025.
From energy transitions and AI integrations to mineral acquisitions and digital innovations, these under-the-radar entities are reshaping industries with calculated moves and technological prowess.
While household names dominate headlines, these under-the-radar stocks represent companies that operate with understated prominence, making impactful decisions that might redefine their futures by 2025.
From energy ventures diversifying their portfolios to healthcare pioneers pioneering digital tools, each entity embodies a distinct narrative. Analyzing their recent actions, acquisitions, and technological leaps offers a tantalizing glimpse into their potential to emerge as market leaders.
Read more to explore the covert strategies and growth trajectories these under-the-radar stocks have meticulously crafted to pursue value growth.
Viper Energy (VNOM)
Viper Energy’s (NASDAQ:VNOM) decision to transition from a partnership structure to a Delaware corporation holds significant strategic implications. Thus, converting into a corporation elevates corporate governance rights for limited partners.
The move will enhance trading liquidity, attracting more investment from index funds. Compared to its peers, where around 30% of ownership is held by index funds, Viper’s figure stands at 2%. Hence, the ownership suggests room for a substantial growth opportunity once the conversion is complete.
Viper Energy’s acquisition of GRP represents a pivotal move in bolstering the company’s mineral and royalty assets. The acquisition met crucial financial metrics, ensuring medium accretion and strengthening relevant financial indicators.
The addition of approximately 32K net royalty acres in the Permian Basin significantly expanded Viper’s portfolio and production capacity, surpassing the 25K barrels of oil per day.
The quality and quantity of the undeveloped inventory, particularly in the Northern Midland Basin, are crucial aspects of this acquisition. Therefore, this strategic move diversifies Viper’s asset base and positions the company for immense growth, making it among the under-the-radar stocks to buy now.
Concentrix (CNXC)
Concentrix’s (NASDAQ:CNXC) extensive use of AI solutions across its operations reflects its focus on leveraging technology for enhanced efficiency, productivity, and service quality. Concentrix deploys AI-driven tools to stay at the forefront of technology.
Additionally, the company actively invested in additional generative AI solutions to further boost productivity and customer interaction quality. The company planned to use AI tools in 80% of its legacy operations business by year-end and with new clients from the Webhelp merger.
Finally, the company continued to grow in its strategic verticals, offsetting volume softness in select large client sectors. Notably, health care showed the highest growth at approximately 17%, followed by retail, travel, and e-commerce clients at 8%. Numbers like those make it one of the under-the-radar stocks with big future potential.
Ferroglobe (GSM)
Ferroglobe’s (NASDAQ:GSM) acquisition of a high-quality quartz mine in South Carolina with an annual production capacity of 200K metric tons significantly enhances the company’s self-reliance on crucial resources necessary for its silicon metal production. Not surprisingly, the mine has an expected reserve life of at least ten years.
Additionally, there are anticipated cost efficiencies of 10% to 15% lower than the Alabama mine, strengthening Ferroglobe’s cost competitiveness. The new mine’s proximity to operational facilities secures Ferroglobe’s long-term competitiveness within the U.S. footprint, ensuring operational efficiency and cost-effectiveness.
Fundamentally, Ferroglobe’s strategic shift towards targeting the solar and EV battery markets aligns with these sectors’ forecasted significant growth potential. Hence, the company’s emphasis on high-purity silicon production provides a competitive edge over graphite, especially in battery anodes, promising increased battery capacity and reduced charging time.
Intuitive Surgical (ISRG)
Intuitive Surgical’s (NASDAQ:ISRG) digital tools, including SimNow surgical simulators, My Intuitive app, and Intuitive Hub, witnessed substantial growth.
For instance, in Q3 2023, routine use of the My Intuitive app by over 10,000 da Vinci surgeons grew by 140% year-over-year. Similarly, intuitive hub installations grew by 58% and captured surgical cases increased by 61% in the quarter.
Fundamentally, the increased adoption of digital tools shows growing engagement and utilization among healthcare professionals. The growth in routine use of digital tools shows higher utilization, positively affecting customer return on invested capital and contributing to the company’s economic health. The growth in installations and surgical case captures in Intuitive Hub demonstrates its increasing acceptance of remote surgical support and collaboration.
Overall, higher engagement and routine use of these tools among healthcare providers indicate their trust and reliance on Intuitive Surgical’s technology for better patient care, ultimately contributing to the company’s continued growth.
Roblox (RBLX)
Roblox’s (NYSE:RBLX) platform has grown across various age cohorts, including users aged 13 through 16, 17 through 24, and 25 and up.
This trend suggests the company’s broad appeal and engagement across different demographics. For instance, in Q3 2023, there was a notable increase in daily active users, 20% year-over-year.
The engagement hours among these diverse age groups changed from 22% to 29%. Thus, this highlights the platform’s ability to cater to a wide range of users, fostering engagement and retention.
Roblox has initiatives to make the platform accessible across multiple devices, including Meta Quest and Sony PlayStation. The initiatives target ensuring the platform’s omnipresence and accessibility to users, irrespective of their device preferences.
This approach aligns with Roblox’s vision of reaching a broader audience and maximizing user engagement across various platforms. Thus, the approach may continue to drive growth and user acquisition.
Finally, the company’s advertising initiatives, including video ad testing, underscore its efforts to explore additional revenue streams beyond traditional monetization models. Therefore, this diversified approach to monetization leverages advertising opportunities, potentially leading to incremental revenue growth and enhanced profitability.
ATI (ATI)
There is a sustained and growing demand for ATI’s (NYSE:ATI) products in the aerospace and defense sectors.
ATI’s Q3 performance highlighted a remarkable achievement, with Aerospace and Defense sales reaching 61%, up from 58% in Q2. This surge marks a record for the company, indicating the firm’s strong position within the aerospace and defense markets.
Additionally, the order lead times for some specialty product lines extend as far as Q1 2025. This extended timeline suggests stability in future demand, indicating a positive outlook for ATI’s products. Also, there is a significant surge in the demand for titanium, with ATI titanium sales up approximately 75% in just 12 months.
The steep increase reflects the high market demand and ATI’s capability to fulfill customer commitments efficiently. Furthermore, the company’s strategic expansion of titanium melt capacity by 45% through restarts and optimizations further supports its ability to meet this soaring demand.
Finally, an additional furnace is coming online in Oregon, which can produce high-value specialty titanium alloys, representing ATI’s proactive approach to addressing demand gaps. This incremental step is expected to generate an additional $50 million in titanium revenue annually.
Brainsway (BWAY)
Brainsway (NASDAQ:BWAY) has delivered a significant surge in performance, as in Q3 2023, revenue surged by 61% year-over-year, signaling a compelling trend. The growth emphasizes Brainsway’s robust market traction and escalating demand for deep transcranial magnetic stimulation systems.
The substantial growth is indicative of the company’s effective marketing strategies. Furthermore, 56 Deep TMS systems were shipments in the same quarter. This suggests a consistent and significant expansion of Brainsway’s clientele and underscores the effectiveness of its sales and distribution network.
At the bottom line, Brainsway can maintain a stable gross margin of 74% in Q3, in line with Q3 2022. Thus, the margin levels demonstrate that the company can effectively manage production costs and pricing strategies.
Overall, the consistency in Brainsway’s top-and-bottom-line growth highlights its capability to control costs, while the scale of operations demonstrates a robust foundation for future growth.
On the date of publication, Yiannis Zourmpanos 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.
