Investors can overlook underestimated stocks to buy for various reasons. In many cases, some inherent flaw or fundamental issue makes their underestimated status apparent.

Those issues, in turn, prevent institutional and retail investors alike from stockpiling shares, no matter how cheaply they trade.

But when underestimated stocks are worth buying, they tend to be some of the market’s top performers and can drive your overall portfolio’s returns by a massive margin.

The best undervalued stocks to buy comprise mixed-cap stocks representing a blend of underestimated stocks. And, like other underestimated stocks, they could prove to be this year’s big winner as we enter 2024’s second half.

Rumble (RUM)

Rumble (NASDAQ:RUM) is increasingly building its own ecosystem amid the wider tech backdrop that’s setting this stock up to be a media success story, making it one of the undervalued stocks to buy now.

The company’s monthly active user counts consistently sit above 40 million, which, while it pales in comparison to “core” video platforms like Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, still represents a sufficiently “sticky” audience that keeps coming back for more.

This helps prove the platform’s long-term viability as it continues expanding its advertising ecosystem.

Rumble is making waves as its growing industry clout means that it can attract exclusive offerings with big-name creators, like last month’s announced deal with the popular political show Breaking Points.

But, much like other big-name tech stocks, Rumble’s pivot toward cloud services and data hosting may be the sales stream to push it over the edge.

Recently, e-commerce and payments processing company PublicSquare (NYSE:PSQH) migrated its Marketplace platform hosting duties to Rumble — demonstrating that the underestimated stock is rapidly expanding beyond basic video hosting and media market opportunities.

BuzzFeed (BZFD)

Like Rumble, BuzzFeed (NASDAQ:BZFD) is another underestimated media stock. As activist shareholder activity ramps up, it may soon make headlines.

The company’s underestimated status comes from a long history of scandals, including accusations of plagiarism, inappropriate advertiser influence, and a series of increasingly unpopular political stances that have alienated many customers and readers.

These issues, combined with the firm’s slipping sales and limited profitability prospects, may have been what prompted former presidential candidate and activist investor Vivek Ramaswamy to acquire a 7.7% stake in BuzzFeed with plans to kick-start initiate substantial changes.

Ramaswamy is already engaging with Buzzfeed’s board and management to explore numerous operational and strategic opportunities to maximize shareholder value, including staff cuts and a potential shift in the company’s editorial and business strategies.

His investment suggests a strategic move to address the lack of high-quality, independent media outlets and to advocate for greater transparency, objectivity, and quality in media content.

Despite resistance from Buzzfeed’s current management, Ramaswamy’s Strive Asset Management is making its mark as a powerful player in activist investing, potentially setting its sights on further media company investments.

Upwork (UPWK)

Some odd things are happening with Upwork (NASDAQ:UPWK) stock that, in my mind, signal big things ahead for the remote work and freelancing platform.

Over the past month, Upwork introduced an almost shocking amount of new fees to their business model despite two consecutive profitable quarters. The new fees and costs rocked the community and, from an outside perspective, seemed strange in their execution.

After all, rapid and sweeping changes of this nature make them inherently hard to analyze for effectiveness down the road, as delineating between which changes led to which outcomes are effectively impossible.

While this is pure speculation, it seems to me as if Upwork is rapidly positioning itself for a buyout bid of some sort, considering these fees may have negative effects on the platform in the long run but could boost valuation metrics in the short run if management is looking for a merger or acquisition.

Rumors swirled in 2019 that Microsoft (NASDAQ:MSFT) was angling for a merger. Those rumors didn’t pan out, obviously. Still, they point to historical precedent for Upwork signaling that it was interested in doing so.

The bottom line is that if the fees are simply a “new normal” for Upwork, expect the stock to suffer as it increases client friction by forcing upfront costs across the enterprise (you wouldn’t pay a car dealer to browse the inventory, to draw a rough comparison). But if these fees are a rapid bid to increase valuation multiples, this underestimated stock could be 2024’s big winner.

Tilray Brands (TLRY)

Tilray Brands’ (NASDAQ:TLRY) stock has dipped nearly 25% below its January pricing, yet it remains a standout among cannabis stocks to buy.

A key aspect of Tilray that many investors may not fully appreciate is its burgeoning craft beer business. Since acquiring brands from Anheuser-Busch (NYSE:BUD) in 2023, Tilray’s alcohol sales have doubled, providing crucial sales diversification within the competitive cannabis market.

The potential of the craft beer sector is significant and often underestimated beyond simply its broad sales opportunities.

As broader recreational cannabis legalization continues to move through national bureaucratic systems, Tilray is uniquely positioned with an established network for production, distribution, and operations.

This infrastructure could be pivotal to national cannabis product distribution and offer Tilray a substantial competitive edge.

Currently, Tilray is seeking an additional $250 million to finance strategic acquisitions and expand its business areas.

While this funding initiative will dilute existing shares, it presents an attractive buying opportunity for long-term investors aiming to leverage potential gains among underestimated stocks in the cannabis sector.

Stem (STEM)

Sustainable energy stock Stem (NYSE:STEM) bridges two emergent sectors — sustainable energy and artificial intelligence.

Stem’s software, Athena, acts as a sophisticated control system managing the interplay between generators, grid power, solar farms, and battery storage.

Its AI-driven system autonomously optimizes energy distribution based on various factors like weather and energy prices, positioning it as an essential tool for enterprise clients managing sustainable energy solutions.

Though currently considered a penny stock, Stem is poised for significant growth. The company’s growth trajectory may end up similar to formerly speculative AI stocks like Palantir (NYSE:PLTR).

The company outlines this ambition in its “AI and the Future of Energy” white paper, which details a strategic plan to harness AI to enhance efficiencies across the sustainable energy sector.

Like many emerging and underestimated stocks in the renewable energy field, Stem faces challenges in achieving profitability and deals with the inherent volatility of cyclical sales.

Nevertheless, the company has progressed past its initial phases and now boasts a growing stack of completed and ongoing projects.

Tesla (TSLA)

I hit Tesla’s (NASDAQ:TSLA) history as an underestimated stock up top, but that doesn’t detract from its current underestimated status, especially following the recent shareholder vote to approve Elon Musk’s 2018 pay package and the decision to relocate operations from Delaware to Texas.

Despite these significant corporate moves, Tesla’s stock price has not surged as some might have expected and continues to trade below its six-month highs.

Tesla’s long-term upside opportunities are well-documented. Numerous analysts, including ARK Invest, offer detailed projections of Tesla’s market prospects and unique positioning.

However, the most notable recent development for Tesla is the shareholder vote, which represents a significant event in corporate law.

This shareholder approval not only supports Tesla’s strategic management decisions but also underscores the importance of maintaining corporate governance without interference from the judiciary, which had criticized the pay package as excessively large.

This situation highlights the broader implications of external interference in corporate governance, which can introduce risk and uncertainty that may undermine investor confidence in U.S.-based companies.

Tesla’s overcoming of these challenges, coupled with its continued innovation and market leadership, solidifies its status as one of the best underestimated stocks to buy now.

Acuity Brands (AYI)

Investing in Acuity Brands (NYSE:AYI) is a bright decision for those seeking stable, long-term investments in overlooked and underestimated sectors.

As one of the world’s largest lighting companies, Acuity offers a wide array of products ranging from DIY bathroom fixtures to sophisticated streetlight systems for cities.

Over the past two decades, Acuity has strategically expanded its market presence through the acquisition of smaller companies.

Since 2010, Acuity has demonstrated a strong performance track record, maintaining a nearly 10% compounded annual growth rate in earnings, showcasing the company’s resilience in fluctuating markets.

CEO Neil Ashe reinforced this point during the first-quarter earnings call by stating, “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.”

Ultimately, Acuity Brands stands out as a robust and reliable option to anchor a long-term portfolio, especially considering its underestimated stock status.

On the date of publication, Jeremy Flint held a long position in UPWK. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.