Investors are constantly on the lookout for the next big opportunity. The allure of high growth often overshadows a hidden treasure trove. These overlooked stocks can yield substantial returns for those willing to take on a bit of risk.
Among the many listed companies, only a few possess the characteristics to surge 300% or more by 2027. Notable investments in energy, infrastructure and emerging technologies like artificial intelligence are primary growth drivers. While the spotlight shines on the market darlings, discerning investors recognize the opportunity in these overlooked gems.
Here are the top 3 overlooked stocks to snap up in June!
Emcor Group (EME)
Emcor Group (NYSE:EME) presents a compelling opportunity to capitalize on the best overlooked stocks to surge. Its impressive revenue and earnings growth over the last three years is truly just the start.
Emcor Group is the United States’s diversified electrical, construction and energy infrastructure company. The company will capitalize on the increasing need for infrastructure upgrades and expansions over the next decade. A significant competitive advantage is its strong reputation and expertise in repairing robust ventilation systems to contribute to hyper-scale data centers. In the 2023 fiscal year, revenue increased 13.6% YOY to $12.58 billion.
Net income increased 56% year over year (YOY) to $633 million, or $13.3 per share. Furthermore, remaining performance obligations swelled 18.6% YOY to a record $8.85 billion. There
CACI International (CACI)
CACI International (NYSE:CACI) provides informational technology and national security solutions for the intelligence and defense sectors. The company’s cybersecurity, intelligent analysis and enterprise IT expertise have spearheaded its growth over the last several years.
CACI International’s strong relationships with government agencies and ability to adapt to evolving threats make it a trusted partner in the national security landscape. With increasing defense budgets and rising geopolitical tensions across the globe, CACI will benefit from sustained and growing government contracts. Additionally, the company’s strategic acquisitions and innovations in artificial intelligence, data analytics and cloud computing are set to drive substantial revenue growth.
In Q3 FY24, revenue increased 11% YOY to $1.94 billion. EPS rose 18% YOY, with adjusted EBITDA margin up 200 basis points (bps) to 11.3%. Demand for its product offerings is high, and the company continues to execute on strategic priorities. CACI remains optimistic about increasing free cash flow and driving long-term profitable growth.
Comfort Systems USA (FIX)
Comfort Systems USA (NYSE:FIX) is a hidden gem in the stock market primed for substantial growth over the next few years. As a leading provider of mechanical services, including HVAC solutions, Comfort Systems is well positioned to capitalize on the increasing demand for energy-efficient building solutions.
Comfort Systems’s expertise in designing, installing and maintaining HVAC systems is crucial in creating comfortable and healthy environments. These solutions are even more important for commercial and industrial sectors aiming to reduce their carbon footprint. This aligns well with the trend toward green building and smart HVAC systems as regulatory support continues to increase awareness of climate change mitigation.
Moreover, green energy adoption, rising infrastructure spending and increased data center demand bode extremely well for its revenue growth prospects. In the 2023 fiscal year, revenue increased 26% YOY to $5.2 billion. Profitability has risen substantially since the pandemic, with free cash flow more than doubling from 2022. Its backlog also increased 27% from the year prior, making FIX stock one of the top overlooked growth stocks to snap up in June.
On the date of publication, Terel Miles 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.
