7 Overlooked Stocks Offering Long-Term Stability From the Shadows


  • Medtronic (MDT): The Dividend aristocrat is breaking into AI.
  • Atlanta Braves Holdings (BATRA): Buy like Warren Buffett by investing in this legendary sports franchise.
  • Jazz Pharmaceuticals (JAZZ): Capture cannabis upside with less volatility by investing in this pharma stock.
  • Keep reading for more overlooked stocks!

overlooked stocks - 7 Overlooked Stocks Offering Long-Term Stability From the Shadows

Source: Andy Dean Photography / Shutterstock

Finding overlooked stocks (worth investing in) is tough in today’s market. While you can screen for micro-caps, pink sheet stocks, and similar speculative investments, most of the best blue-chip and long-term stocks are well-known and heavily invested in.

Still, a handful of overlooked stocks remain viable, even as tight economic conditions force investors to stack cash or go with reliable index investing. These overlooked stocks blend growth, stability and income while spanning multiple market caps and investment categories. While there’s never a sure thing when investing, these overlooked stocks could be your portfolio’s top earners within a few years.

Medtronic (MDT)

Medtronic (MDT) sign outside office building representing healthcare stocks
Source: JHVEPhoto / Shutterstock.com

Healthy and sustainable dividends, along with the potential for long-term price appreciation, are key characteristics of the most stable overlooked stocks. Medtronic (NYSE:MDT) stands out as one of the premier choices in this category, providing an ideal balance of stability and growth potential. Known for its MedTech sector strength and a robust dividend history, Medtronic sets itself apart from other overlooked stocks by virtue of stability and yield combined.

A major driver for Medtronic’s long-term prospects includes advanced artificial intelligence tech, like its collaboration with Nvidia (NASDAQ:NVDA) to develop an AI-driven diagnostic tool, underscoring its pivotal role at the crossroads of innovation and reliability. Medtronic’s CEO, Geoff Martha, has emphasized the strategic implementation of AI to improve clinical decisions, develop new treatment indicators, and customize patient care, positioning Medtronic as a leader in integrating AI into medical technology.

The latest financial results reinforce Medtronic’s ongoing strength, showcasing a 5% growth in sales and enhanced profitability. Importantly for dividend investors, Medtronic has also increased its quarterly dividend to 70 cents per share, marking the 47th consecutive year of dividend growth, making it an even more attractive option for those seeking reliable, overlooked stocks.

Atlanta Braves Holdings (BATRA)

Atlanta Braves stadium
Source: Katherine Welles / Shutterstock.com

You don’t need to be a billionaire to own a piece of a sports team. By investing in small-cap overlooked stocks like Atlanta Braves Holdings (NASDAQ:BATRA), you can own a part of an iconic sports franchise with far less stress than direct ownership — not to mention the relative cheapness of the stock compared to buying an actual team! The company went public in July 2023, offering investors a chance to tap into the team’s sales revenue and income from real estate assets within the broader Braves ecosystem.

Consider some of the company’s top shareholders for further motivation to invest. This holding company is one of the lesser-known Warren Buffett stocks; he holds a small position that complements his larger investment in SiriusXM Holdings (NASDAQ:SIRI). The Braves’ former owner was Liberty Media (NASDAQ:LSXMA), which is wrapping up the final stages of a SiriusXM restructuring. Buffett’s interest highlights the ecosystem’s unique investment opportunities. But he’s not the only billionaire investing in the Braves. Renowned value investor Mario Gabelli is also bullish on the stock, predicting that shares could reach as high as $55 in the near future.

Jazz Pharmaceuticals (JAZZ)

Image of the Jazz Pharmaceuticals logo on a sign
Source: Michael Vi / Shutterstock.com

If you’re interested in tapping into the current trends but are cautious about the volatility of speculative cannabis stocks, Jazz Pharmaceuticals (NASDAQ:JAZZ) is a solid blue-chip alternative among overlooked pharma stocks. This established pharmaceutical company provides the stability of a well-founded business while actively engaging in the medical cannabis sector. A key highlight is Jazz’s therapeutic for daytime sleepiness and narcolepsy, Xywav, contributing to up to 10% of its total sales. These well-established pharmaceutical products lend a stable base as the company navigates the burgeoning medical cannabis market, energized by recent legislative changes regarding cannabis scheduling.

Jazz is prepped for significant growth as medical cannabis rescheduling develops. Its subsidiary, GW Pharmaceuticals, is a pioneer in developing and commercializing medical cannabis. This strategic position differentiates Jazz from many pure-play cannabis companies focusing merely on branding and distribution. By spearheading high-level initiatives, Jazz is well-prepared to lead the expanding medical cannabis industry and stay ahead of both new and established competitors entering the field in response to new regulations.

GigaCloud Technology (GCT)

ecommerce company nogin, NOGN stock
Source: Shutterstock

Though somewhat speculative, overlooked stock GigaCloud Technology (NASDAQ:GCT) seems perpetually undervalued despite consistently improving earnings reports. Currently trading at just 12 times earnings, its share price has been stuck around the $35 mark since January, unable to break higher.

The company’s first-quarter earnings reported nearly a 100% increase in year-over-year sales and a 71% expansion in net income. Despite these strong results, GigaCloud notes that recent capital expenditures have impacted its bottom line. Still, these investments are strategic, aimed at better positioning the company to meet the growing demands of the marketplace and enhance operational efficiency.

Furthermore, GigaCloud recently launched a significant new initiative in the furniture market, introducing a branding-as-a-service campaign that enables business owners to white-label existing furniture manufacturing processes to create their own sales channels and penetrate the broader furniture market. Such innovative strategies demonstrate GigaCloud’s skill at tapping into new market opportunities, promising a positive outlook for this undervalued stock.

Titan Machinery (TITN)

red tractor in yellow field with clouds behind it
Source: Shutterstock

Overlooked stocks in the agriculture and construction equipment stocks like Titan Machinery (NASDAQ:TITN) may not have the widespread recognition of larger peers such as Deere & Co (NYSE:DE), but Titan’s solid fundamentals are impressive. Titan Machinery recently announced its fourth-quarter and year-end results, exceeding expectations with a 25% increase in annual sales and nearly a 10% rise in annual earnings, despite challenges like rising supply chain and fuel costs.

Yet, despite these robust fundamentals, Titan Machinery remains significantly undervalued, trading at just 0.19x sales, 4.8x earnings, and 0.80x book value. This stark undervaluation is highlighted by the company’s 79% income growth over the past three years. With a cautious outlook for 2025 that anticipates single-digit gains across its various segments and a potential slight dip in year-end earnings, surpassing these modest projections could trigger a sharp increase in Titan’s stock value. Given its current pricing, this overlooked value stock could harvest gains for years to come.

Acuity Brands (AYI)

aculty signage (AYI) stocks to buy
Source: JHVEPhoto / Shutterstock.com

Investing in Acuity Brands (NYSE:AYI) is a bright idea if you’re looking for stable, long-term overlooked stocks. Actuity is one of the largest lighting companies globally and offers an extensive range of products, from DIY bathroom fixtures to comprehensive streetlight solutions for municipalities. Over the past two decades, Acuity has actively acquired smaller companies, significantly expanding its presence across the lighting industry.

Since 2010, Acuity has maintained a nearly 10% compounded annual growth rate in earnings, a robust indicator of the stock’s resilience despite market volatility. The company continues to uphold this strong performance, as CEO Neil Ashe highlighted in the first-quarter earnings call: “We increased our adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share. We generated significant free cash flow, and we allocated capital effectively to drive value.” Despite market fluctuations, Acuity Brands is a resilient investment among overlooked stocks despite its relatively pedestrian product offerings.

VICI Properties (VICI)

Person holding mobile phone with logo of American real estate company Vici Properties Inc. on screen in front of web page. VICI stock.
Source: T. Schneider / Shutterstock

Planning a Las Vegas getaway? Stick your cash in overlooked stock VICI Properties (NYSE:VICI) instead. The REIT owns and sometimes operates several iconic Vegas properties, including Caesar’s Palace, the Venetian, and MGM Grand. This impressive portfolio makes VICI an attractive investment, as Las Vegas will likely maintain its global allure.

VICI went public in 2017 following Caesars Entertainment’s (NASDAQ:CZR) bankruptcy proceedings. While Caesars continues to operate Caesars Palace, VICI owns the property, earning revenue from gamblers and tourists with significantly lower operational risks than its tenants.

Since its initial public offering, VICI returned 60% on price appreciation alone. Its gross returns surpass 120% if you factor in dividends. Over the last seven years, VICI has sustained a robust dividend yield of about 5%, with the current 12-month trailing yield at 5.8%. This combination of competitive yield and growth potential positions VICI as a premier choice among overlooked stocks within the broad REIT category.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/7-overlooked-stocks-offering-long-term-stability-from-the-shadows/.

©2024 InvestorPlace Media, LLC