The 3 Best Sleeper Stocks to Buy in November
When it comes to picking stocks, sometimes it is a good idea for investors to look for and find companies that may not be in the spotlight and have a ton of investor interest at the moment. Try to find companies that are performing well, offer a promising outlook for the future and are less prevalent in hopes of being rewarded once the company does receive more traction.
Below, I discuss three different companies that continue to offer investors a strong outlook and performance for the future and also which are most likely to keep growing in popularity — sleeper stocks.
Innovative Industrial Properties (IIPR)
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Based in California, Innovative Industrial Properties (NYSE:IIPR) is a real estate investment trust (REIT) focused on acquiring and owning properties for use in the legal cannabis industry, which includes retail locations as well as more extensive facilities used for cultivation and processing. The company owns just over 100 properties located in 19 different U.S. states. IIPR is also one of the only REITs that trades publicly and engages in the ownership of properties in the regulated cannabis industry.
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Over the past year, IIPR has seen a drop in its share price by 35% from tension with legislation that has not been beneficial for the regulated cannabis industry in terms of expanding in more U.S. states. and issues regarding delinquent tenants in the past, with the possibility of improved legislation in the near future in the regulated cannabis space and with issues of tenants not paying rent mostly behind them. IIPR is an excellent grab for investors looking for a dividend stock with a great valuation.
One big draw for investors is that the REIT has a solid and stable dividend. On September 15, IIPR announced a dividend payment to investors of $1.80 per share for the third quarter of 2023. That makes its annual dividend ratio approximately 10.29%.
It reported second-quarter earnings on August 2, stating a jump in total revenue of 8%. Net income also grew compared to the year before — by 3%. IIPR is expected to release its third-quarter earnings results on November 1.
Salesforce (CRM)
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Salesforce (NYSE:CRM), located in San Francisco, California, is a software company that focuses on providing information for the customer service industry. That includes store data, customer trends and forecast opportunities — among other metrics.
There is a buzz surrounding Salesforce and its placement within the generative AI space. Its overall involvement in the AI arena is significant to investors. AI can help Salesforce perform customer management analysis and give it the ability to perform more concise customer service industry predictions for the future.
On August 30, Salesforce released its earnings report for the second quarter of 2023, which stated an 11% increase in total revenue year-over-year. It also reported net income of $1.3 billion for Q2 2023. That is a huge jump compared to its net income for Q2 2022, which was only $68 million. And the company also performed stock buybacks totaling $1.9 billion just in the second quarter of 2023.
In the past year, Salesforce has seen its share price grow by 21%, with its unique positioning within the generative AI space, specifically around customer trends and other similar analytics. Salesforce has room to grow.
Abercrombie & Fitch (ANF)
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Abercrombie & Fitch (NYSE:ANF), headquartered in New Albany, Ohio, is an apparel retailer geared towards young adults. The company operates multiple different brands, including Hollister, Abercrombie, Social Tourist and Gilly Hicks.
Year-to-date, ANF has seen its share price more than double. That was due to its increasingly positive earnings report recently. On August 23, ANF reported financial results for the second quarter of 2023, which stated a 16% increase in total sales compared to the year before. The company also reported net income of $57 million. ANF also increased its outlook for the remainder of the year, specifically on sales and operating margins. Directly following this earnings report, the company’s stock went up by 24%.
ANF is a leading stock in the retail space at the moment and has performed very well over this last year. With the holiday season approaching, this could be an excellent opportunity for investors.
As of this writing, Noah Bolton 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.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
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