Finding discounted opportunities greatly increases portfolio profits in the constantly changing world of stock investing. Here are the top three sleeper stocks. These three companies are steadily gaining ground and have the potential to develop significantly but most investors still need to discover them.

Understanding the fundamentals of these sleeper stocks is important since they can yield significant profits before gaining market traction. These companies are vital due to their creative digital advertising solutions, steady top-line growth in the financial technology industry and solid financial performance in the energy market.

Each business operates in a different field but unites through solid growth potential and sound financial standing. This article provides investors with important insights by identifying the elements contributing to their success. Gaining substantial profits and improving investing methods may depend on your ability to identify and comprehend these opportunities at an early stage. Let’s dive into the stock market’s hidden value for these emerging stars.

Perion (PERI)

Perion (NASDAQ:PERI) has unique digital advertising strategies. The company excels in retail media solutions, connected TV (CTV) and programmatic digital out-of-home ads. In Q1 2024, Perion’s retail media offerings experienced a staggering 134% year-over-year (YoY) increase, a testament to its ability to capture significant demand in the retail industry. The company’s use of artificial intelligence (AI)-driven dynamic mapping and high-impact advertising units has been instrumental in its leadership in this field.

Moreover, integrating HiveStack’s digital out-of-home advertising technology has further strengthened Perion’s retail media solutions, setting the stage for future top-line expansion. With that, Perion is leveraging real-time data, such as sporting events, to optimize ad delivery and drive sales lift. In Q1, Perion’s CTV advertising division saw impressive growth, rising 108% YoY. This expansion demonstrates the business’s capacity to satisfy the changing demand from digital marketers.

Overall, Perion’s growth trajectory has been accelerated by its creative application of AI-driven technology and dynamic mapping. Given its increasing success in digital advertising, the company stands out as a strong candidate for sleeper stocks.

SoFi (SOFI)

SoFi (NASDAQ:SOFI) is a financial services and technology platform. The company provides financial services, like investment management and lending. In Q1 2024, SoFi’s adjusted net sales increased by 26% YoY to $581 million. This is the 12th quarter in a row with growth above 25%. Financial services and technology platforms provide most of the top-line. Their contribution has boosted to 42% of adjusted net revenue in Q1 2024 from 33% the previous year.

Moreover, with adjusted EBITDA of $144 million, up 91% YoY and a 25% margin as opposed to 16% a year before, SoFi saw a notable increase in margin. The financial services division saw a significant increase in margin, rising from a $24 million loss in the previous quarter to a 25% profit in Q1. Similarly, SoFi exhibited excellent balance sheet management by increasing tangible book value 16% sequentially to $4.1 billion.

To sum up, SoFi is a compelling addition to the list of sleeper stocks due to its steady revenue growth and profitability across all categories. This is especially true considering its flexibility in responding to shifting customer expectations and its strong development potential in the fintech industry.

Gran Tierra (GTE)

Gran Tierra (NYSEMKT:GTE) is an energy company that specializes in discovering and extracting natural gas and oil. The company derived a Funds flow from operations (FFO) of $74 million in the first quarter of 2024, a solid 24% YoY boost over Q1 2023. This is happening despite operating in a volatile industry.

Additionally, the company’s adjusted EBITDA increased, coming in at $95 million for the quarter as opposed to $93 million the previous quarter. Gran Tierra has solid operational performance and sharp capital usage, which is reflected in its stable FFO growth and adjusted EBITDA.

Further, the company produced almost $19 million in free cash flow (FCF) in the quarter, even though it spent $55 million on capital projects. Gran Tierra can produce FCF, which signifies its successful and efficient operations. This enables the business to reinvest in expansion prospects, pay down debt or reward shareholders with dividends or share buybacks. In short, Gran Tierra’s operational efficiency and financial stability are shown in its capacity to create FCF and its constant rise in FFO.

As of this writing, Yiannis Zourmpanos held a long position in SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.