The stock market is practically at all-time highs with AI leading the way. Many of these companies have become household names now and are up 50-100% in just the past year. The problem with many of these big companies is that they have likely already seen much of the big moves to come. This leaves investors in a position where they missed the rally and are trying to buy in at overvalued prices. But these companies aren’t the only ones worth investing in.
The market is full of many companies that most people haven’t even heard of. Many times, these are the ones with the most opportunity since investing in these gives us a chance to get in early before the mainstream rally begins. However, finding these companies can be difficult and time-consuming. That’s why in this article, we have done the work for you and aim to present you with three stocks flying under the radar with huge potential.
Blue Bird Corporation (BLBD)
Blue Bird Corporation (NASDAQ:BLBD) is a leading bus manufacturer revolutionizing the industry by spearheading buses powered by alternative fuel sources, specifically electric vehicles. In light of its recent stellar earnings, Yahoo! Finance analysts project a strong one-year price target between an average of $38.21 and a high of $44.00.
Blue Bird’s Q1 earnings beat, stock price surge, and higher guidance into FY 2024 can largely be attributed to its electric bus expansion. While its niche in solely school buses does raise some risks, Blue Bird is pinned to continue a multi-year expansion plan. The main drivers toward this shift include investments into the electrification of aging vehicle fleets, greater pricing power, and market dominance in Type C and Type D school buses. As a testament to their growth, Blue Bird has recently received the single largest order of electric school buses in history by the Los Angeles Unified School District.
Although Blue Bird does face some challenges in maintaining margins within such a cyclical industry, its financial health is beginning to see an upward trajectory. With net sales seeing a 34.8% growth QOQ and management guidance reconfirming profitable growth towards $2 billion in revenues, Blue Bird Corporation is a stock all investors should consider into 2024.
Dole Plc (DOLE)
Dole Plc (NYSE:DOLE) produces and sells agricultural products globally, being one of the largest producers in the world. Currently, Yahoo! Finance predicts the stock to trade within a one-year price range of $10 to $18 with an average of $15.
Despite setbacks within the last month, Dole is still projected to benefit from the agriculture industry’s estimated CAGR of 3.07% within the next four years. Additionally, with a projected recession incoming, demand for canned and agricultural goods may increase, further driving up Dole’s stock price.
Beyond the industry outlook, Dole holds a P/E ratio of 12.71x compared to the industry average of 29.02x, proving the company is still undervalued. Adding to its undervalued P/E ratio, the company boasts impressive year-over-year (YoY) profit growth of 15.67% and YoY EPS growth of 25.27%. With a solid industry and financial standing, Dole proves to be a strong under-the-radar investment that has a solid future.
Taiwan Semiconductor (TSM)
Taiwan Semiconductor (NYSE:TSM) is the largest semiconductor manufacturer and plays a vital role throughout the tech industry. With 12,698 different products, it is known for offering chips for various applications like 5G networks and even AI. Yahoo! Finance analysts project a one-year range of $100-$160, with an average price of $125.
The semiconductor industry is valued at around $570 billion of which TSMC has a market share of 56.4%. It also plans to increase its global presence with an upcoming factory set to be built in Arizona, marking its first venture outside Asia. Taiwan Semiconductor also has partnerships with over 500 companies, including being the only chip manufacturer for Apple (NASDAQ:AAPL).
TSM currently has a P/E ratio of around 26.2x, mostly aligning with industry standards. Although this doesn’t mean that Taiwan Semiconductor is significantly undervalued to its peers, it still holds a major advantage in its average earnings growth rate of 23.6%. The company has proven to be consistently increasing its sales every year, which underscores its financial stability for the future. With continued demand for semiconductors this year, Taiwan Semiconductor is an excellent stock to consider buying for its unmatched market share and earnings.
On the date of publication, Ian Hartana and Vayun Chugh 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.
