There is an ocean of stocks in the U.S. with hundreds of names representing quality companies. For perspective, the New York Stock Exchange lists more than 2,500 stocks and the NASDAQ lists more than 3,300. I haven’t even talked about other exchanges, including the OTC. The key point is that there’s a high likelihood of investors missing potential multibagger stocks in the universe of listed names.

The objective of this column is to talk about the lesser known or the under-the-radar stocks that could be major value creators. The point with under-the-radar stocks is that these names are generally undervalued. Stocks that are in the limelight are usually fairly or overvalued. I therefore like to scan through the universe of stocks and pick lesser-known names to analyze the business.

Let’s discuss the factors that make these names potential multibagger stocks.

Radware (RDWR)

Radware (NASDAQ:RDWR) stock has trended lower by 25% year-to-date. The correction provides a good accumulation opportunity and RDWR is a potential multibagger from current levels.

As an overview, Radware is a provider of provider of cyber security and application delivery solutions. These solutions are for physical, cloud and software defined data centers. The company believes that the market size for its solutions is $7.2 billion for the year. Further, the market size is expected to swell to $10.7 billion by 2027. This provides ample headroom for growth.

From a revenue perspective, there are two important points to note. First, recurring revenue for Q3 2023 was 79% of total revenue. As annual recurring revenue increases (driven by cloud ARR), I expect healthy EBITDA margin and cash flows.

Second, the company has presence in Americas, Asia Pacific and EMEA (Europe, Middle-East, and Africa). With strong geographical presence, the addressable market is significant. Recently, the company announced a deal with a “leading Asia-Pacific government office that is chartered to oversee its nation’s information technology infrastructure and services.”

Standard Lithium (SLI)

It’s been a bad year for lithium stocks with the metal correcting significantly from highs. However, with rising adoption of electric vehicles, the long-term outlook for lithium is bullish. A significant supply gap is expected by 2035. Standard Lithium (NYSE:SLI) is a potential multibagger that’s worth considering at current levels of $2.70.

An important point to note is that Standard Lithium commands a market valuation of $450 million. Standard Lithium has drilled one of the highest confirmed lithium grade brine in Arkansas. The project is estimated to have a life of 20 years and has an after-tax net present value of $4.5 billion. Further, the Lanxess project has a NPV of $772 million.

The asset valuation puts into perspective the upside potential for SLI stock.  Of course, there is time for project development and commercialization. However, project development and potential upside in lithium will be catalysts for SLI stock.

Leonardo DRS (DRS)

Leonardo DRS (NASDAQ:DRS) stock has surged by 109% in the last 12 months. However, the growth stock from the defense sector remains attractively valued at a forward price-to-earnings ratio of 27.7. Recently, the company reported strong Q3 numbers and I expect the rally to sustain backed by positive business developments.

For Q3 2023, Leonardo reported revenue and EBITDA of $703 and $82 million respectively. An important point to note is that for the first nine months of the year, order bookings were $2.5 billion with the total backlog at $4.7 billion. As the backlog swells, there is visibility for margin expansion and cash flow upside.

The company was formed with the merger of Leonardo DRS and Rada Electronic. With ample financial flexibility, merger and acquisition continue to be a key growth strategy for the company. Given the positive tailwinds for the defense sector, I am bullish on Leonardo making it big in the coming years.

On the date of publication, Faisal Humayun did not hold (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.