The first quarter of 2024 is in the books, and it was a good one. The benchmark S&P 500 index rose 11% to start the year, its best start since 2019 — before anyone had heard of Covid-19. The increase in the market was largely driven by widely held and well-known mega-cap technology stocks such as Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META). However, the market rally has begun to broaden out to include other, lesser known names.
Look a little further afield and investors can find many little-known stocks that are beating the market. Some have consistently beaten the market for years while flying under the radar of investors. Often times, these are smaller companies that work in core areas of the economy, provide essential products and services and generate consistent earnings growth. Yet they aren’t flashy or exciting, and they get little attention in the business press.
For investors, finding these stocks can literally be like finding a hidden gem. Here is under the radar: three little-known stocks that are beating the market in 2024.
Miller Industries (MLR)
Miller Industries (NYSE:MLR) is both little known and a little company. Based outside Chattanooga, TN, Miller Industries manufactures tow trucks and towing equipment. It builds light and heavy-duty wreckers that tow broken down vehicles of all shapes and sizes, and sells them primarily in North America and Europe. The company gets almost no media coverage and currently no analysts follow it. There are literally no price targets on MLR stock.
Yet Miller Industries steadily outperforms the market. So far in 2024, MLR stock is up 21%, nearly double the 11% gain in the S&P 500 index. Over the past 12 months, Miller’s stock has risen 42%. At the same time, the company’s market capitalization is less than $600 million, classifying it as a small cap stock. It trades at nine times forward earnings and it pays a quarterly dividend that yields 1.52%. While not flashy, exciting or cutting edge, MLR stock is definitely worth checking out.
NetApp (NTAP)
NetApp (NASDAQ:NTAP) is a little-known technology company based in Silicon Valley. The company specializes in providing data storage and cloud-computing operations to enterprise customers. While data storage and cloud computing are buzzy areas of tech right now, all the attention is going to companies such as Micron Technologies (NASDAQ:MU), while NetApp largely flies under the radar. This is surprising given that NTAP stock has increased 22% year to date and is up 64% over the last 12 months.
NetApp has a market capitalization of $21 billion, trades at 23 times future earnings estimates, which is reasonable for a tech company of its size, and pays a dividend of 50 cents per quarter, giving it a yield of almost 2%. Considering that most technology stocks pay no dividend, NetApp looks like a great choice in the current market. About 20 analysts cover NTAP stock currently, which is about half the number that follow Micron. The consensus rating on NetApp shares is a “strong buy.”
Trane Technologies (TT)
Heating and air conditioning isn’t a topic they spend a lot of time talking about on CNBC. It doesn’t get much ink in The Wall Street Journal. That’s unfortunate as investors have likely missed out on Trane Technologies (NYSE:TT), a little-known stock that beats the market consistently. Based in Ireland, Trane is an old school heating, ventilation and air-conditioning company. While flying completely under the radar, TT stock has risen 25% so far in 2024, is up 63% through 12 months, and has increased 244% over five years.
With its long bull run and a market cap of $68 billion, TT stock currently trades at 33 times future earnings estimates. It provides shareholders with a quarterly dividend of 84 cents per share, for a yield of 1.12%. Year to date, Trane Technologies stock is in the top 10% of performers in the S&P 500 index. Yet for all its success, Trane remains a little known stock. Currently, 25 analysts follow TT stock, most of them in Europe. There’s a consensus “buy” rating on the shares.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
