The Secret Stock Stash: 3 Overlooked Picks That Belong in Every Portfolio

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  • Dig out some hidden gems with these overlooked stocks to buy.
  • Ensign Group (ENSG): Ensign Group could bank on longstanding demographic trends.
  • Dutch Bros (BROS): Dutch Bros can help feed America’s addiction to caffeine.
  • Intra-Cellular Therapies (ITCI): Intra-Cellular offers a range of potentially powerful therapeutics.
Overlooked Stocks - The Secret Stock Stash: 3 Overlooked Picks That Belong in Every Portfolio

Source: Vova Shevchuk / Shutterstock.com

While it’s always comforting to bank on ideas that the masses believe in, overlooked stocks have their charm too. By targeting enterprises that relatively few investors follow, should the stars align just right, the rewards could be enormous.

In many ways, acquiring overlooked stocks is akin to placing long-shot wagers on underdog sports teams. People just don’t give the non-favorites a chance, which is why they’re underdogs to begin with. But to entice the other side of the wager, the terms for going with the least-favored teams are amplified. Win and you can win big.

Of course, you will be taking on higher risks. That’s the name of the game. If that’s acceptable to you, below are overlooked stocks to consider.

Ensign Group (ENSG)

A nurse is helping a older woman. Elder care. Senior care.
Source: Rido / Shutterstock

Based in San Juan Capistrano, Ensign Group (NASDAQ:ENSG) falls under the medical care facilities category. Specifically, Ensign provides skilled nursing, senior living and rehabilitation services. Due to the population spike represented by the baby boom, this sector should see expansive growth. Therefore, the company appears poised to benefit from a large total addressable market.

Financially, Ensign doesn’t deliver the most exciting print. However, its earnings performances are consistent. Between the second quarter of 2023 to Q1 2024, the healthcare specialist’s average positive earnings surprise landed at 1.25%. Over the trailing 12 months (TTM), Ensign generated net income of $218.38 million on sales of $3.85 billion.

For fiscal 2024, covering experts believe that earnings per share could rise 13.2% against the prior year to hit $5.40. On the top line, sales could reach $4.15 billion. If so, that would imply 11.4% growth from last year’s tally of $3.73 billion. Analysts rate shares a consensus moderate buy with a $135 average price target, making ENSG a top candidate for overlooked stocks to consider.

Dutch Bros (BROS)

A Dutch Bros coffee shop representing BROS Stock.
Source: Alexander Oganezov / Shutterstock.com

Headquartered in Grants Pass, Oregon, Dutch Bros (NYSE:BROS) operates in the broad restaurants category. Along with its subsidiaries, Dutch operates and franchises drive-thru shops in the U.S. It specializes in coffee and similar beverages. With social normalization trends booming, it’s quite possible that the brand can fill America’s insatiable desire for caffeine.

For some reason, BROS stock doesn’t get much media attention. However, that could change soon enough. In the past four quarters since Q1 2024, the company’s average positive earnings surprise clocked in at nearly 159%. The “worst” performance during this period was for Q2 2023. Dutch posted earnings of 13 cents per share against an expected target of 7 cents.

In the TTM period, the beverage specialist posted net income of $12.62 million on sales of $1.04 billion. For fiscal 2024, experts anticipate EPS growth of 23.3% to reach 37 cents. On the top line, sales could hit $1.22 billion, implying year-over-year growth of 26.8%. Analysts peg BROS a consensus strong buy with an average price target of $38.89.

It’s indeed a strong candidate for overlooked stocks to buy.

Intra-Cellular Therapies (ITCI)

dollar sign written with pills spilled from a medicine bottle. millionaire maker drug stocks
Source: Shutterstock

Operating out of New York City, Intra-Cellular Therapies (NASDAQ:ITCI) falls under the drug manufacturing category. Per its corporate profile, Intra-Cellular focuses on the discovery, clinical development and commercialization of small molecule drugs that address various medical needs. Primarily, these needs center on neuropsychiatric and neurological disorders. Currently, it features drug candidates in clinical trials for addressing schizophrenia and Parkinson’s disease, among other conditions.

To be sure, Intra-Cellular isn’t a profitable enterprise. However, it consistently mitigates expected losses. In the past four quarters, the company’s average positive quarterly surprise comes out to 40.4%. During the TTM period, the biopharmaceutical firm incurred a net loss of $110.87 million. However, during this time, it posted revenue of $513.93 million.

For fiscal 2024, analysts expected the company to post a loss per share of 53 cents. While that’s negative, it would be a huge improvement from last year’s loss of $1.46. Also, revenue may hit $663.49 million, implying top-line expansion of 42.9%.

Finally, ITCI is a consensus strong buy with a $94.08 average price target. For speculators, it’s one of the overlooked stocks to consider.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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