Unveiling Hidden Gems: Add These 7 Stocks to Your Radar

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The world of stock markets is awash with opportunities for investors, from the stalwart and surefire to the bold and risky. While renowned stocks like the Magnificent Seven have basked in the limelight of success for years, there are hidden gems quietly shining in the shadows, awaiting discovery. Here are some lesser-known stocks deserving a spot on your investment watchlist.

The Rise of Cava (CAVA)

Cava (NYSE:CAVA), a modest Mediterranean fast food chain, prances with a market cap of $7.5 billion and a P/E ratio soaring over 300. Although the high P/E ratio may deter conservative investors, the company’s robust revenue growth and promising long-term prospects indicate a potential alignment with its valuation.

In Q4 of 2023, Cava witnessed a staggering 59.8% surge in revenue, coupled with the inauguration of 72 new Cava outlets throughout fiscal 2023. With ambitions to revolutionize the cultural culinary landscape, Cava has celebrated three consecutive quarters of positive net income.

Despite a mere 1% net profit margin in the latest quarter, Cava stands poised to elevate its profit margins substantially in the coming quarters. The year-to-date climb of 59% underscores growing investor enthusiasm for this emerging fast food chain.

Qualcomm’s Rejuvenation (QCOM)

Qualcomm (NASDAQ:QCOM), a semiconductor stalwart, has successfully navigated past its 2023 challenges, with the first quarter of fiscal 2024 boasting a 5% year-over-year revenue growth and a 24% surge in net income.

Bolstered by its Snapdragon platforms that tap into generative AI, Qualcomm stands out with a modest P/E ratio of 24 and a generous dividend yield nearing 2%. The stock has rallied 18% year-to-date, outpacing both the S&P 500 and Nasdaq 100.

With a Q2 FY24 revenue target between $8.9 billion and $9.7 billion, Qualcomm’s upward trajectory hints at possible surprises for investors as it distances itself from the challenges of the past year.

Meta Platforms’ Social Triumph (META)

Meta Platforms (NASDAQ:META), the social media juggernaut, has jolted several funds and indices with a stellar resurgence in 2023. Tripling its net income in the fourth quarter of 2023 and a 25% surge in revenue have reignited investor interest in this behemoth.

In the ever-competitive landscape of social media, rife with a battle for user attention, Meta Platforms thrives by attracting eyeballs, equating to more lucrative advertising opportunities. Moreover, its suite of apps, including Instagram and WhatsApp, commands impressive user engagement metrics.

Recent data reveals the average person spends almost 20 hours monthly on Facebook, surpassing all but TikTok and YouTube in activity. As the attention economy intensifies, Meta Platforms stands as a prime contender in this digital arena.

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