Mega-cap tech stocks and household brands seem to get all the attention from analysts, investors and the media. This is a shame, because there are many lesser-known stocks that have racked up huge gains in both the short and long-terms, and beaten the broader market by a wide margin.
Typically, these are stocks of specialty companies that operate in a narrow segment of the economy. Many exceptionally well-run companies target a niche market and perform under the radar as small and medium-sized enterprise. Their executives don’t appear on CNBC and their ticker symbols aren’t splashed across the frontpage of The Wall Street Journal. But these stocks are like the little engine that could, quietly chugging their way to big gains for stockholders.
Here are three lesser-known stocks that could make you rich.
| CROX | Crocs | $111.06 |
| MNST | Monster Beverage | $58.81 |
| DECK | Deckers Outdoor | $513.29 |
Crocs (CROX)
Big gains can often be found in the stocks of unique, niche companies. Such is the case with Crocs (NASDAQ:CROX), the footwear company that specializes in making foam clogs. What started out as a novelty item sold largely seen along beach boardwalks has grown into a major corporation that today has more than 6,500 employees and annual sales in excess of $2 billion. Indeed, CROX stock has also been a powerhouse, gaining 117% over the last 12 months and increasing 508% over the past five years.
CROX stock has outperformed the shares of both Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) since 2018. Foam clogs have literally bested the iPhone in terms of stock performance. Who knew?
Key to Crocs’ success is the company’s endlessly inventive marketing campaigns, which emphasize fun and comfort to its consumers. The company most recently announced a partnership with Taco Bell that will see Crocs release a limited edition shoe with the restaurant’s branding. That kind of creativity has taken CROX stock far over the years, and should continue to do so.
Monster Beverage (MNST)
Monster Beverage (NASDAQ:MNST) is likely familiar to many investors as the company that sells energy drinks with muscular names such as “Monster Energy,” “Relentless,” and “Burn.” However, MNST stock doesn’t get as much attention as it should, given its impressive track record of outperformance.
The company’s share price is up 15% this year, has gained 33% over the last 12 months, risen 108% over five years, and increased 525% since June 2013. Twenty years ago, the stock was trading at 4 cents a share.
The stellar performance of MNST stock can be attributed to the fact that energy drinks have become an accepted part of mainstream culture and continue to rise in popularity. Despite health warnings about the excessive amounts of caffeine and sugar in energy drinks, consumers can’t get enough of them. This has propelled Monster’s earnings and stock to new heights. Notably, MNST stock has split three times since 2012, most recently a two-for-one split executed in March of this year.
Monster is now getting into the alcohol business, which it sees as a future driver of growth. In 2022, the company bought craft beer maker CANArchy for $330 million. CANArchy makes flavored malt liquor with compelling names such as “The Beast Unleashed.”
Deckers Outdoor (DECK)
Another shoe company that is not widely known, but has been kicking butt lately, is Deckers Outdoor (NYSE:DECK). The company, which has been around since 1973, has seen its stock skyrocket. Over the last 12 months, DECK stock has increased 96%, including a 30% gain so far in 2023. Through five years, the share price has risen 325%. The success can be attributed to sales of the company’s Hoka brand of running shoes, which have become extremely popular among runners worldwide. Deckers Outdoor also makes UGG-branded footwear.
Despite the huge run over the past year, analysts remain bullish on DECK stock. Raymond James (NYSE:RJF) just initiated coverage of Deckers Outdoor with an “outperform” (buy) rating and a price target that is 12% higher than where the shares currently trade. Sales at Decker continue to grow due to the popularity of Hoka runners. Consider that the company has beaten analysts’ expectations for earnings and revenue in every quarter since February 2022, and five analysts boosted their price targets on DECK stock since May 26 of this year.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
