After a positive end to August, the stock market is showing signs of strength. The S&P 500 and the Nasdaq have rebounded and are now above their key moving averages. With a positive outlook for earnings growth in the coming years, investors are looking for under-the-radar stocks to invest in this September.
Construction Partners, Inc. (ROAD)
Construction Partners, Inc., known by its ticker symbol ROAD, is a vertically integrated civil infrastructure company. They specialize in constructing and maintaining roadways in the southeastern U.S. In addition to publicly-funded projects, the company also operates in the private sector, providing paving and sitework services for various types of infrastructure.
Road posted strong revenue growth in fiscal year 2022 and exceeded expectations for Q3 FY23. The company is projected to continue its growth with double-digit sales growth this year. Despite recent gains, ROAD is still trading below its highs and has a price target that is higher than its current share price.
Payoneer Global (PAYO)
Payoneer Global is a fintech firm focused on serving small and medium-sized businesses. With a global financial platform operating in over 190 countries, Payoneer aims to become a major player in emerging markets. The company has seen significant revenue growth and exceeded expectations for Q2. Analysts expect continued growth in revenue and earnings in the coming years.
Despite recent gains, PAYO is trading below its average price target. The stock is also discounted compared to its industry peers. Recommendations from brokers are overwhelmingly positive, indicating confidence in the company’s growth potential.
Hubbell Incorporated (HUBB)
Hubbell Incorporated is a leading manufacturer of utility and electrical solutions. The company is well-positioned to benefit from the increasing demand for grid modernization and the growth of alternative energy sources. Hubbell has a strong history of earnings and revenue growth and has consistently raised its dividend for the past 15 years.
Hubbell’s stock has outperformed the broader market in recent years and has rebounded after a period of profit-taking. The company is trading at a discount to its highs and offers a solid dividend yield. With strong expectations for earnings and sales growth, Hubbell is positioned for further success.
These three under-the-radar stocks offer investors the opportunity to capitalize on growing industries and promising growth prospects. While there are always risks in the market, these stocks have shown strength and have the potential for further gains. Investors should consider their own risk tolerance and conduct further research before making any investment decisions.
DISCLOSURE: Ben Rains owns shares of HUBB in the Zacks Alternative Energy Innovators service.
Sources: Zacks Investment Research