Many great stocks get little attention and fly under the radars of investors. This situation is partly due to a lack of media attention and news coverage of great companies that, for the most part, are quietly going about their business. Another factor is that there are stocks that Wall Street pros don’t want you to know they’ve discovered.
Protective and territorial, many hedge fund managers, traders and other whales on Wall Street jealously guard the stocks they are quietly amassing big positions in. The most popular stocks on Wall Street are often far from the limelight but rise due to catalysts that include strong financial results, favorable economic conditions and circumstances. Finding these hidden gems can give a big boost to a portfolio.
Here are three stocks the Wall Street pros don’t want you to know about.
Freeport-McMoRan (FCX)
Both gold and copper prices have hit record highs in recent months, making it a great time to own the stock of Freeport-McMoran (NYSE:FCX). The Phoenix, Arizona, mining company is a major copper producer and operates the world’s biggest gold mine, the Grasberg mine in Indonesia. The company’s shares have been riding high, along with prices for gold and copper.
So far this year, FCX stock is up 17%. Over the last 12 months, the company’s share price has gained 26%. And the stock has risen 335% since 2019. With metal prices expected to remain elevated for the remainder of this year and into 2025, Freeport-McMoran can be expected to continue making hay while the sun shines. Its stock also pays a quarterly dividend of $0.08 per share, yielding 0.61%.
Amphenol (APH)
There’s another way to play the boom in artificial intelligence (AI) microchips and processors. Amphenol (NYSE:APH) makes electronic and fiber optic connectors and cables that can be found on chips and semiconductors. It also makes coaxial cables. As one might expect, demand for its products is through the roof right now, leading to strong earnings and a company’s share price boost.
APH stock is up 41% this year, 70% over the last 12 months, and 187% through five years. While it doesn’t get nearly as much attention as other companies in the AI chip space, Amphenol stock is one of the best performers in the benchmark S&P 500 index over the past year, and it is a popular pick among hedge funds and large institutional investors. Amphenol stock also recently split on a 2-for-1 basis.
Heico (HEI)
Heico (NYSE:HEI) operates an extremely niche business. The company makes aircraft replacement parts, each of which has to be approved by the Federal Aviation Administration (FAA). Aircraft parts are in focus right now, given all the safety issues being raised at commercial aircraft manufacturer Boeing (NYSE:BA). Heico has stood up to the scrutiny, and its financial results remain strong.
Consequently, HEI stock has quietly outperformed the broader market this year, with its share price up 27% year-to-date. Over the past 12 months, the stock has gained 35%. Heico most recently reported fiscal second-quarter EPS of $0.88, which trounced consensus estimates of $0.80 . Revenue in the quarter matched forecasts of $955 million. The company’s sales rose 39% year-over-year. Heico also recently raised its dividend by 10%.
On the date of publication, Joel Baglole 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.
