3 Overlooked Stocks Poised for Massive Growth


  • These stocks are not the most popular among investors, but no one can disagree with their potential for spectacular growth in the coming years.
  • Pinterest (PINS): PINS is a leading image-sharing platform with a vast capacity for continued digital ad revenue. 
  • Pure Storage (PSTG): PSTG is a leading option for companies to handle massive memory requirements for AI applications, reflecting the current market demand.
  • Roku (ROKU): ROKU is currently undervalued, considering its synergy with more popular-than-ever streaming platforms and diversified revenue streams.
Overlooked Growth Stocks - 3 Overlooked Stocks Poised for Massive Growth

Source: shutterstock.com/Lemonsoup14

Among the current bullish market conditions, there is no better time to buy stocks to take advantage of general upward trends. Some stocks are attracting attention from every angle, including major AI and biotech stocks with astonishing potential. However, some stocks with comparable growth potential are severely overlooked and priced cheaper as a result.

These three stocks fly under the radar but are teeming with growth potential to show excellent performance in the coming years. Investors can add these to their portfolios without stressing about a huge price tag inflated by hype and crazy expectations.

Let’s learn about the possibilities in these three overlooked growth stocks through solid digital ad revenue and favor from current market trends.

Pinterest (PINS)

Pinterest, Inc. (PINS) logo
Source: tanuha2001 / Shutterstock.com

Pinterest (NYSE:PINS) peaked during the pandemic when online browsing was at an all-time high. The image-saving and sharing platform has yet to climb back to its historic heights but is without question in a prime position to do so. 

Pinterest currently has strong momentum, coming off a solid finish to 2023. For the last quarter, the company reported revenue growth of 12% year-over-year (YoY), and Global Monthly Active Users increased 11% YoY to reach a new record high of 498 million users.

While the company reported a net loss for the year, net income for Q4 was $201 million. The comeback was fueled by the increased user traffic and its immediate effect on Pinterest’s ad revenue. Pinterest provides excellent ad space for brands and companies from all over the globe and is set to profit from the climbing number of active users.

The company saw just over $3 billion in revenue for 2023, but as soon as 2025, it is projected to increase by another $1 billion. If economic trends favor companies’ spending on digital ads, this growth could accelerate. 

The ads that Pinterest can run seemingly have no limit to their diversity, and the platform has excellent potential to capitalize on the growth of digital ads.

Pure Storage (PSTG)

The Pure Storage logo at the entrance to its office in Mountain View, California. PSTG stock.
Source: Tada Images / Shutterstock

The AI boom has investors everywhere excited and putting big money into AI stocks with the latest and greatest technology. However, among the exploding popularity and demand for AI applications, one indispensable need is storage. Pure Storage (NYSE:PSTG) is lined up to be the company that fulfills that need and enjoys tremendous growth as a result.

AI software relies on the massive amounts of data required to generate and perform the services it is made for. Behind the mountains and mountains of data will always be a need for storage, and Pure Storage’s 43% jump in stock price so far this year shows investors believe it is up for the task.

While Pure Storage is attracting attention, its major competitor, Micron (NASDAQ:MU), has the most favor from investors. But while PSTG is overlooked by many, it still holds tremendous growth potential. It offers its state-of-the-art server storage solution as a subscription for businesses, and its subscription revenue grew 26% YoY in fiscal 2024.

Pure Storage does not have the exploding growth of some other AI stocks, with guidance showing 10.5% revenue growth for fiscal 2025. That being said, there is little to no doubt that Pure Storage is set to have consistent, steady growth resulting from more and more businesses requiring its subscription to support the implementation of new AI programs.

Roku (ROKU)

Logo for Roku, Inc. (ROKU) displayed on a glass building
Source: Michael Vi / Shutterstock

Roku (NASDAQ:ROKU) is another stock that peaked during the pandemic when viewers used its devices and platform the most. The stock has settled into a dip and flatlined for the last couple of years, with investors treating it as a holding with little potential to shine.

However, Roku is by no means a stock to be overlooked. To dismiss doubts about its current performance, its most recent quarterly report from this year was fantastic. Net revenue was up 19% YoY, and gross profit was up 15% YoY, reaching just shy of $400 million.

Streaming households have increased by 1.6 million since Q4 2023, and streaming hours per household have increased by 5.7 billion hours YoY. That increased viewership has the phenomenal potential to grow Roku’s ad revenue steadily. 

The company has diversified revenue through its devices, platforms and ads, creating its inherent synergy with streaming that sets it up to grow along with the massive popularity of at-home viewing. Roku is overlooked and criminally undervalued, considering its enormous potential to grow for many years to come.

On the date of publication, Joel Lim 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.

Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-overlooked-stocks-poised-for-massive-growth/.

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