The meteoric rise of cutting-edge public enterprises thanks to generative artificial intelligence has been a highlight of the past year. However, not every tech stock has basked in the glow of success. Enter the realm of underappreciated tech stocks – a hidden treasure trove waiting to be unearthed.
Amidst the vast sea of publicly traded securities, the tech world is rife with emerging contenders vying for attention with promises of revolutionizing the industry. In this crowded landscape, some truly exceptional tech stocks struggle to break through the noise and garner the recognition they deserve.
Yet, with a discerning eye and a penchant for uncovering hidden gems, astute investors might discover some overlooked treasures waiting to shine. These underappreciated tech stocks hold the promise of remarkable growth potential if given the chance.
Revealing GitLab’s Potential (GTLB)
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A juggernaut in the software domain, GitLab (NASDAQ:GTLB) is a powerhouse in the U.S., Europe, and the Asia Pacific markets, specializing in software development cycles. The company’s state-of-the-art DevOps platform, GitLab, streamlines the software development lifecycle, offering unparalleled speed and control across all stages of development.
While GTLB has seen a commendable 53% growth in equity value over the last 52 weeks, a recent 7% dip underscores its underappreciated status. Despite this, GitLab proves its mettle by consistently surpassing earnings expectations. Notably, in the last quarter, it delivered an EPS of 15 cents against an anticipated 8 cents, signaling robust financial performance ahead.
With experts projecting an EPS of 22 cents on revenue of $731.94 million for the current fiscal year, GitLab holds significant promise. Analysts unanimously back GTLB as a strong buy, setting a price target of $73.40 – an enticing 32% growth potential on the horizon.
Vipshop: A Jewel in the East (VIPS)
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Operating from the heart of China, Vipshop (NYSE:VIPS) shines as an e-commerce giant, offering a diverse array of products and services. From fashion essentials to lifestyle goods and even financial services, Vipshop caters to a broad consumer base, leveraging its multifaceted business model to drive growth.
Despite a modest 17% rise in the past 52 weeks and a recent 1% decline this year, Vipshop’s compelling valuation metrics reveal its hidden charm. Currently trading at a mere 8.06X forward earnings and 0.61X trailing-year sales, VIPS presents an attractive proposition for investors seeking value.
With a track record of surpassing EPS estimates throughout the last fiscal year, Vipshop is poised for further success. Analysts predict an EPS of $2.54 on revenue of $16.75 billion for the current fiscal year, showcasing its potential for sustained growth. Backed by analysts as a unanimous strong buy with a price target of $24.50, Vipshop signals a promising 43% upside potential.
MoneyLion: Roaring into the Future (ML)
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Leading the charge in the fintech sector, MoneyLion (NYSE:ML) empowers American consumers with personalized financial products and services. Through its innovative platform, MoneyLion offers banking, borrowing, and investing solutions, including the popular RoarMoney digital account and Instacash cash advance service.
With a remarkable 300% surge in the past year but a modest 2% gain in 2024, MoneyLion stands out as an underappreciated gem that is gathering momentum. Despite this, the company’s EPS performance has consistently defied expectations, exemplified by the recent Q4 results surpassing estimates.
Expert forecasts anticipate an EPS of 71 cents on revenue of $522.11 million for the current fiscal year, painting a bright picture for MoneyLion’s future. With analysts unanimously rating ML as a strong buy and setting a price target of $95.50, investors are poised to reap a bountiful 50% return on their investments.
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.
