Growth stocks fell out of favor with investors in 2022 as inflation skyrocketed and central banks around the world raised interest rates to lower it. Many high-flying growth stocks fell 50% or more over the last year, with several falling completely off investors’ radars. Growth stocks that soared during the Covid-19 pandemic crashed and burned and appear to be have been left for dead by both professional and retail investors. Yet there is hope that growth stocks will recover in the year ahead as inflation slows and the U.S. Federal Reserve pivots away from its aggressive monetary policy stance. This could present a golden opportunity for investors to reap big gains, especially from growth stocks that have been largely forgotten. Here are seven under-the-radar growth stocks that can climb 10% or more
|CMG||Chipotle Mexican Grill||$1,512.47|
Roku (NASDAQ:ROKU), which provides an operating system for internet-connected television sets and runs an online advertising business, has been abandoned and forgotten by investors. In the last 12 months, ROKU stock has fallen 74% to $49.15 per share. At its pandemic peak in July 2021, the stock was changing hands for just under $475 a share.
The main reasons for the decline of ROKU stock have been waning demand for its electronic devices and a slowdown in the demand for online advertising. Yet analysts who cover the company seem to think that the selloff has been overdone. Among the 26 analysts who cover Roku, the median price target on the stock is $56.50 a share, well above its current levels.
Match Group (MTCH)
Based in Dallas, Texas, Match Group (NASDAQ:MTCH) owns and operates the world’s largest portfolio of online dating services, including Tinder, Match.com and OurTime, to name only a few. The company boasts more than 15 million monthly subscribers and has annual revenues in excess of $2 billion.
While the company has successfully cornered the online-dating market, its stock gets scant attention from investors. Consequently, MTCH stock has sunk 64% in the past year to $46.06. Yet writing off this stock would be a mistake. Most analysts forecast strong growth ahead for Match Group, driven by increasing profits in the years ahead. The median price target on the stock is $60, indicating that most analysts expect the shares to rally a great deal.
Chipotle Mexican Grill (CMG)
Generally, consumers who like Chipotle Mexican Grill (NYSE:CMG) like it a lot. And the company has been powering ahead with strong earnings and an aggressive expansion plan. Even the Covid-19 pandemic wasn’t able to slow down Chipotle.
The company’s net sales grew 13.7% during the third quarter of 2022 versus the same period a year earlier, and Chipotle opened 43 new restaurants in the quarter. Moreover, its earnings per share rose 28% year-over-year to $9.20.
Yet worries about an economic slowdown and a broad market downturn kept CMG stock flat over the last 12 months. But most Wall Street analysts think the stock can climb a great deal. Indeed, the 31 professional analysts who cover Chipotle have a median price target on the stock of $1,800.00 a share, well above the stock’s current level
Teladoc Health (TDOC)
Another casualty of the post-pandemic world is telehealth and virtual medicine company Teladoc Health (NYSE:TDOC). The shares of the company that connects doctors and patients via conference calls peaked at just under $300 a share in February 2021. Yesterday TDOC closed at $25.11 as concerns about virtual medicine being a fad have soured investors on Teladoc Health.
Yet everything else in our lives is moving online and to virtual environments, so why wouldn’t medicine? I believe that it will. As a result, I think that the reports of Teladoc’s demise are greatly exaggerated. And actually, the company has managed to continue signing up new customers and medical practitioners. In fact, TDOC recently raised its revenue guidance.
Moreover, analysts’ median price target on the stock is $31.50, suggesting that it can climb a great deal going forward.
Dollar General (DG)
Few retailers perform as well in a recession as dollar stores. When consumers feel that their finances are strained, they look for the low-cost alternatives that Tennessee-based Dollar General (NYSE:DG) provides. As a result, investors may want to pay attention to this under-the-radar growth stock.
Over the last year, DG stock has been largely ignored by investors. The share price has gained a slight 4.3% in the past 12 months. Most analysts on Wall Street clearly think that Dollar General is a good investment, as the median price target on the stock among 26 analysts is $275.50, which is over 20% above where it closed yesterday.
The entire cybersecurity sector was beaten down in 2022, and one of the casualties was Cloudflare (NYSE:NET). The share price of the San Francisco-based company that specializes in protecting websites from cyberattacks has tumbled 56% lower over the last year . The decline has surprised many as the demand for cybersecurity is only growing and Cloudflare is a market leader in the space.
Most Wall Street analysts see better days ahead for the tech company and are forecasting a rebound by NET stock in 2023. The 22 analysts who cover Cloudflare have a median price target on the stock of $60, 40% above yesterday’s closing price.
Analysts clearly like this company’s growth outlook and the fact that Cloudflare has grown its revenues by 50% or more in each of the last three years.
DISH Network (DISH)
Okay, hold onto your hat. The 14 analysts who cover television and wireless internet provider DISH Network (NASDAQ:DISH) have a median price target on the stock of $29, which is close to double the $15.10 level at which the shares closed yesterday. Most analysts seem adamant that DISH stock is oversold, undervalued, and worth a lot more than its current share price.
In the past year, DISH stock has declined 58%, pushing its price-earnings ratio down to five, which suggests that the stock is extremely cheap right now.
Going forward, most analysts expect DISH Networks’ growth to be powered by the expansion of its wireless unit, which is in heated competition with Verizon (NYSE:VZ), T-Mobile (NASDAQ:TMUS) and AT&T (NYSE:T).
DISH is definitely an under-the-radar growth stock that investors should buy now.
On the date of publication, Joel Baglole 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.
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