7 Unmatched Stocks: The Untapped Goldmines to Buy Now.
While many financial advisors will direct you to established public enterprises, investors seeking some “oomph” for their portfolio may want to target “unmatched” stocks with potential. Rather than walking along the beaten path, these lesser-known entities carry significantly higher risk. At the same time, if circumstances align just right, you could enjoy massive upside.
To be clear, you shouldn’t dedicate more funds than you can afford to lose in speculative market ventures. True, I’m pitching these ideas as the most promising stocks to buy. However, there’s no such thing as a free lunch, especially on Wall Street. Chances are, if you’re going to extract robust returns, you must accept robust risks. It’s just the way that it works in this part of town.
If that’s not your thing, we can always talk about blue chips (probably next week). However, if you want to swing for the fences, try these enticing stocks with potential.
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Stocks with Potential: AMN Healthcare Services (AMN)
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An innovative staffing and workforce solutions provider, AMN Healthcare Services (NYSE:AMN) specifically targets the namesake industry. While circumstances haven’t panned out so well this year – with shares dipping more than 16% since the Jan. opener – for patient investors, AMN could be one of the worthwhile stocks with potential.
According to data compiled by Statista, the healthcare sector’s revenue will reach about $16.81 billion this year. Further, experts project sales to expand at a compound annual growth rate (CAGR) of 12.71%, leading to a print of $27.13 billion by 2027.
Financially, AMN Healthcare enjoys an impressive three-year revenue growth rate (per-share basis) of 35.8%, beating out 86.74% of its peers. Nevertheless, AMN trades at only 0.84X trailing-year sales, favorably lower than 66.92% of rivals.
Finally, analysts peg AMN as a moderate buy with an average price target of $106.67, implying over 20% upside potential. Plus, the high-side price target is $120, implying over 35% growth.
MarineMax (HZO)
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Headquartered in Clearwater, Florida, MarineMax (NYSE:HZO) specializes in the sale of boats and yachts. In addition, the company provides first-rate boat repair and services. At first glance, the idea of HZO as one of the stocks with potential seems a bit out there. After all, the headlines are screaming about how consumers are hurting under stubborn inflation. Tellingly, HZO only gained less than 7% since the Jan. opener.
While not discounting the pain in the middle class, the reality is that folks who buy boats are wealthy. And while it’s a contested narrative, it seems at least one institutional trader is willing to jump aboard the contrarian trade. Specifically, on July 26, the volume for sold puts (which carry a neutral-to-bullish implication) came out to 1,300 contracts against an open interest reading of 1,551.
That’s a big block order likely placed by institutional traders. Operationally, MarineMax prints a three-year revenue growth rate of 24%. Even with this impressive tally, HZO trades at a lowly sales multiple of 0.31x, below the sector median of 0.67x.
Lastly, analysts peg shares as a moderate buy with a $44.75 price target, implying 34% upside.
Stocks with Potential: JOYY (YY)
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An oddity among stocks with potential, I’m willing to give JOYY (NASDAQ:YY) a chance. You’d have to be into speculating, though. Based in Singapore, JOYY bills itself as a leading global social media platform. It enables users to interact with each other in real-time through online live media. Since the start of the year, YY slipped about 8%. That’s not encouraging, although YY could make some noise.
Primarily, the broader narrative for JOYY centers on Southeast Asia’s Internet economy, which stood at $194 billion last year. While projections may be hazy due to current events, near the end of 2021, experts projected this economy to hit $1 trillion by 2030. Again, the timeline may be off now. However, the underlying market remains robust.
On the operational scale, JOYY prints an impressive three-year revenue growth rate of 36%. Even with this performance, YY trades at only 1.07x trailing revenue. That’s well below the sector median of 2.1x. To close, YY carries a moderate buy consensus view with a $47.50 price target, implying nearly 47% upside potential.
Digital Turbine (APPS)
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An intriguing, but risky idea among stocks with potential, Digital Turbine (NASDAQ:APPS) is a leading independent growth and monetization platform. Per its website, it’s changing the mobile advertising landscape to create a framework that levels the playing field for advertisers, publishers, operators, and original equipment manufacturers (OEMs). Though a relevant service, APPS fell nearly 40% since the Jan. opener.
Nevertheless, for those seeking the most promising stocks to buy, APPS may belong on your radar, especially if you gamble. Right now, institutional traders are selling call options on APPS, which carry a bearish sentiment. However, traders under a multi-sweep transaction have also recently sold puts. These contracts have a strike price of $10, indicating an anticipation that APPS will soon recover. It’s currently priced at $9.03.
Also, it’s worth pointing out that Digital Turbine prints a three-year revenue growth rate of 61.6%. Nevertheless, it trades at a lowly revenue multiple of 1.49x. Turning to Wall Street, analysts peg APPS as a moderate buy with a $13.33 price target, implying nearly 48% upside.
Stocks with Potential: Valneva (VALN)
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A French biotechnology firm, Valneva (NASDAQ:VALN) develops and commercializes vaccines for infectious diseases, per its public profile. Obviously, with the COVID-19 crisis and the horrific damage that it imposed, Valneva plies its trade in a relevant industry. Unfortunately for current stakeholders, the market doesn’t see the opportunity. Since the beginning of this year, VALN has been down about 1% below parity.
Still, VALN could be one of the most promising stocks to buy for speculators. Even with the drop in COVID-19 vaccine sales since the 2022 peak, the broader infectious disease market may still expand by 5.7% through 2029, per Fierce Pharma.
Financially, Valneva prints a three-year revenue growth rate of 31.5%, well above the sector median stat of 6.5%. Even with this robust performance, the market prices VALN at a sales multiple of only 1.95x. In contrast, the sector median price-to-sales ratio stands at 9.05x. Lastly, H.C. Wainwright’s Edward White pegs VALN a buy with a $22 price target, implying over 62% upside potential.
DLH Holdings (DLHC)
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Hailing from Atlanta, Georgia, DLH Holdings (NASDAQ:DLHC) presents a high-risk, high-reward opportunity among the most promising stocks to buy. According to its website, DLH solves health and national security challenges through digital transformation, science, and development. As well, it meets its directive through systems engineering. Overall, DLH focuses on facilitating national security readiness solutions for federal programs.
Although addressing a critical need, the market has been slow in accepting DLHC. Since the start of the year, shares slipped almost 2%. In the trailing one-year period, they fell a bit more than 35%. However, it could be one of the stocks with potential given the importance of its readiness protocol. We’ve already seen how a lack of preparedness can impact social and economic stability.
On a financial note, DLH prints a revenue and EBITDA growth rate of 31.3% and 41.9%, respectively, over the past three years. Nevertheless, shares trade at a revenue multiple of 0.48x, below the sector median of 1.07x. In closing, Noble Financial’s Joe Gomes pegs DLHC a buy with a $21 price target, implying over 88% upside.
Ebix (EBIX)
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Headquartered in Johns Creek, Georgia, Ebix (NASDAQ:EBIX) presents a tempting but dangerous idea for the most promising stocks to buy. Don’t get me wrong: Should this leading international supplier of on-demand software and e-commerce services to the insurance, financial, and healthcare industries fire on all cylinders, its equity shares can skyrocket. However, so far, it’s been doing the exact opposite of skyrocketing.
Since the start of the year, EBIX fell more than 23%. At least some of the negativity centers on bearish action among institutional traders. In the most recent sessions, the alpha dogs have been selling calls, which carry pessimistic undertones. However, on Aug. 14, traders under heavy volume via multi-sweep transactions began selling puts with a strike price of $12.50.
While the bears could win out, it’s also possible that the bulls may be targeting Ebix’s strong three-year revenue growth rate of 21.6%. As well, EBIX trades at a lowly trailing-year earnings multiple of 13.77x.
On a final note, Craig-Hallum’s Jeff Van Rhee pegged EBIX a buy with a $50 price target, implying over 236% upside.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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