Overlooked and Undervalued: 3 Stocks With Jaw-Dropping Upside Potential

  • With bullish sentiment sweeping Wall Street, explore undervalued stocks offering substantial growth
  • Zillow (Z): Zillow’s rental segment offers untapped growth potential in a high-turnover market
  • Editas Medicine (EDIT): Editas’ dual CRISPR platforms differentiate it by enhancing genome editing precision and quality, driving promising trial results
  • Concentrix (CNXC): Concentrix’s strategic acquisition of Webhelp boosted its revenues by more than half a million in Q4, expanding its footprint in vital verticals like financial services and healthcare
Undervalued Stocks - Overlooked and Undervalued: 3 Stocks With Jaw-Dropping Upside Potential

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In the past 12 months or so, a surge of bullish sentiment has overtaken Wall Street, with investors backing AI-powered growth stocks. In this excitement, a handful of stocks have dominated the bulk of those gains, overshadowing promising undervalued stocks to buy.
Moreover, as we progress to the second-half of the year, there’s substantial growth potential in undervalued stocks. Experts predict stock market gains to be more broad-based than last year, making it an opportune time to scoop up under-the-radar picks with monstrous upside. Hence, considering the current market dynamics, it’s imperative to focus on portfolio diversification and capitalize on untapped potential. With that said, here are three undervalued stocks offering superb long-term upside potential ahead.

Undervalued Stocks: Zillow (Z)

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Zillow (NASDAQ:Z) has carved out an enviable niche in the online real estate marketplace. The company has done remarkably well in leveraging its innovative DNA to develop a robust complementary ecosystem of services. This strategy has significantly increased its monetization avenues while widening its footprint in the massive real estate transaction market. However, we’ve seen its stock flounder, buckling under the pressures exerted by high interest rates. The potential easing of financial conditions later this year could significantly reinvigorate investor interest in the stock.

Its fundamentals have held up well, unlike its stock, as it outperformed analyst estimates across both lines in the past eight consecutive quarters. Its rental segment, in particular, appears most particularly promising heading into the second half of the year. Despite having sold nearly 4.8 million homes in the U.S., only 35% of those nine million multifamily rental properties were featured on the platform. This under-penetration, along with the high turnover rate in the rental market, positions ZG for a healthy upside ahead.

Editas Medicine (EDIT)

Gene editing stocks: a concept image of a hand holding a pair of tweezers that is pulling a section off of a dna strand
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Editas Medicine (NASDAQ:EDIT) is one of the most promising plays in the field of genomic medicine. Using advanced CRISPR technology platforms, it offers precise DNA editing capabilities and develops treatments for various genetic disorders. Moreover, its dual CRISPR approach, with CRISPR/Cas9 and CRISPR/Cas12a, sets it apart from its competitors by significantly enhancing the quality of genome editing.

It boasts a deep pipeline, achieving major milestones in its clinical and preclinical trials. For instance, its clinical trials covering Leber congenital amaurosis 10 (LCA10) showed promising safety and efficacy. Similarly, its RUBY trial for sickle cell disease showed that the patients no longer experience episodes of severe pain caused by blocked blood flow.

With multiple catalysts in motion and partnerships with major biopharma firms such as Bristol Myers, EDIT stock offers explosive growth potential. Upcoming clinical trial updates and commercialization progress will likely lift the company’s market position and long-term financial outlook.

Concentrix (CNXC)

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Concentrix (NASDAQ:CNXC) is one of the top companies involved in customer experience outsourcing. It provides a range of services to improve client engagement, including sales support, technical support, and business process optimization. With the breadth of services it offers, Concentrix has operated a consistently growing business, exhibiting 13% top-line growth on average over the past five years.

It recently caught a spring in its step with the acquisition of Webhelp, a global business process outsourcing (BPO) business, at the end of the fourth quarter (Q4), adding north of $570 million to its revenue. Moreover, it expanded its footprint in critical verticals, including financial services, healthcare, and other areas.

Additionally, Concentrix has been looking to leverage the power of AI to improve its service offerings without undermining the crucial human element of customer interactions. This strategic use of AI technology has enabled Concentrix to substantially enhance its service delivery, optimize resource management, and increase profitability.

On the date of publication, Muslim Farooque did not have (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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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