3 Obscure Stocks That Could Revolutionize Your Returns


  • Several lower-volume stocks still offer impressive growth for investors.
  • Innovative Industrial Properties (IIPR): provides a great dividend yield and has solved tenant delinquency issues.
  • VirTra (VTSI): recently received a contract with the primary contractor, Microsoft (MSFT).
  • Blue Bird (BLBD): strong profit growth has increased these stocks.
Obscure stocks - 3 Obscure Stocks That Could Revolutionize Your Returns

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Investors typically seek out very popular stocks with a large trading volume in hopes of riding the wave of growth potential. However, many investors who only pay attention to very popular stocks miss out on significant buying opportunities among stocks traded less often.

Investors should pay attention to a broader array of companies and refrain from avoiding certain stocks because they aren’t heavily traded.

These particular and obscure stocks have an average trading volume below 500,000, making them fairly obscure in most investors’ eyes. However, they all offer strong returns and provide investors with huge upside potential.

Obscure Stocks to Buy: Innovative Industrial Properties (IIPR)

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Innovative Industrial Properties (NYSE:IIPR) is an industrial REIT company that owns, manages, and leases properties for use within the regulated cannabis industry. It offers a substantial portfolio of over 100 properties in 19 states.

Over the past year, its share price has increased rapidly by 52% due to a number of factors, including a strong dividend, increased revenue growth, and a focus on resolving tenant issues.

IIPR’s dividend currently stands at approximately 7.41% on an annual basis, having increased for six consecutive years. Its latest quarterly dividend was one dollar eighty-two cents, paid out to investors on April 15. IIPR offers such a great dividend mainly because, as a real estate investment trust (REIT), it is required to distribute 90% of its taxable income to investors, primarily in the form of dividends.

On February 26, IIPR announced its earnings for the fourth quarter of the full year 2023, stating that total revenue increased by 12% and net income remained practically unchanged compared to the previous year.

In the past, issues regarding delinquent tenants in 2023 plagued IIPR, which caused investors to flee the company due to its uncertain outlook. However, with its renewed focus on eliminating this issue, IIPR is now at a point where it is collecting 100% of total rent, which has greatly improved investors’ interest.

IIPR is a solid stock with an abundance of positive traits that investors look for. Its very low average volume is surprising.

VitTra (VTSI)

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VirTra (NASDAQ:VTSI) is a small-cap industrial company that primarily supplies military and law enforcement with real-world training simulators that are wrap-around screens with varying degrees of total coverage.

Its latest earnings reports positively surprised investors, and its stock price surged by nearly 40% directly following the report. On April 1, its fourth quarter full-year 2023 earnings were released, stating that total revenue increased by 17%, and net income grew by more than fourfold compared to the previous year.

It has also received a decent contract worth approximately $6 million to provide the U.S. Army with a visual augmentation program. Microsoft (NASDAQ:MSFT) is the main contractor.

VirTra is an impressive company whose share price has increased by nearly 150% in the last year. It deserves much greater attention from investors and is trading at a considerably decent value.

Obscure Stocks to Buy: Blue Bird (BLBD)

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Blue Bird (NASDAQ:BLBD) is a heavy equipment manufacturer that sells various types of school buses, including gas, diesel, electric, and natural gas-powered.

One this past year, its share price has nearly doubled primarily due to an improvement in overall profitability. 

Its most recent earnings release beat analysts’ expectations for revenue and earnings per share. On Febrary 7, Blue Bird reported earnings for the first quarter of fiscal year 2024, which stated that total revenue increased by 35% year-over-year. A net loss was reported for Q1 FY 2023 of $11 million, and for Q1 FY 2024, that grew to a net income of $26 million. And total unit sales also increased by 8% year-over-year.

Blue Bird improved its earnings guidance for fiscal year 2024 in its latest revision, which stated that total revenue is expected to be between $1.15 and $1.25 billion.

Blue Bird is a great company with strong earnings potential, especially since average unit prices have increased by over 25% and seals continue to grow year-over-year. It’s a stock with low volume but impressive potential.

As of this writing, Noah Bolton 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.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/3-obscure-stocks-that-could-revolutionize-your-returns/.

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