Disruption Alert: 3 Under-the-Radar Stocks Primed for Massive Gains


  • Here are three under-the-radar stocks poised for strong returns:
  • Gigacloud Technology (GCT): the company’s high-growth e-commerce business makes this a strong long-term play.
  • Brookfield Renewables Corp (BEP): BEP is a dividend-paying stock that’s trading at a bargain.
  • MGM Resorts (MGM): MGM’s pipeline of international investments and growing sports betting business signals major upside potential.
under-the-radar stocks - Disruption Alert: 3 Under-the-Radar Stocks Primed for Massive Gains

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Big-tech names have fueled recent gains but a number of under-the-radar stocks show massive growth potential. These perpetual underdogs are less well-known but have the potential to generate outsized returns. Finding these hidden opportunities can help savvy investors earn lucrative returns.

There are several reasons these stocks don’t get the press attention they deserve. Some find themselves overshadowed by larger competitors while others are on the path to a recovery. Nevertheless, the sheer potential of these stocks makes them a worthy investment for the long haul. Very often these stocks are also trading at low valuations, giving investors the perfect opportunity to get in at low prices.

Now with thousands of stocks to choose from, the challenge lies in finding those names that are flying under-the-radar. In other words, low-key picks with strong potential. To narrow down the stocks for this piece, I focused on companies with consistent revenue growth, trading at attractive valuations. 

Gigacloud Technology (GCT)

An image of a robot reaching toward a laptop, surrounded by chat bubbles and graphs
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Gigacloud Technology (NASDAQ:GCT) is a compelling pick for investors looking to capitalize on the growth of e-commerce. If you’re unfamiliar with the name, Gigacloud is a B2B furniture marketplace that connects manufacturers with buyers across the world. The company’s strong logistics business and warehouse infrastructure have helped generate strong returns despite weak market conditions. 

The Q1 numbers paint a pretty picture. Revenue was up 96.5% at $251 million and gross merchandise value (GMV) rose by 64%. The growth was underpinned by the launch of its new marketplace Branding-as-a-service or BaaS and an expanding supplier base to provide greater product diversity. Looking ahead, Gigacloud expects revenue to land in the $265 million to $280 million range for Q2.

The company’s ability to outperform a weak market is a testament to its strong baseline business. And while shares have climbed a whopping 335% in the last twelve months, GST stock is looking undervalued. Shares are trading at a forward price-to-earnings ratio (P/E) of just 9.3x. 

In other words, Gigacloud Technologies is primed for massive gains, making it one of the top under-the-radar stocks

Brookfield Renewables Corp (BEPC)

A phone displaying the logo for Brookfield Renewable Corporation (BEPC)
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Next up on the list is the Canadian energy company Brookfield Renewables Corp (NYSE:BEPC). Before diving into the financials, it’s worth looking at the business structure. Brookfield Renewables Corp is part of Brookfield Renewables Partner (NYSE:BEP), a platform that invests in renewable power and decarbonization solutions. The role of BEPC is to help investors access BEP’s globally diversified portfolio.

Looking at the financials, they certainly reflect BEPC’s strong market position. In the last quarter, net income came in at $419 million, a significant increase from -$920 million in 2023. Revenue also saw a slight increase at $1.1 billion, up from $1 billion a year ago. Looking ahead, Brookfield Renewables Partners (the parent company) anticipates a 12% to 15% return on total renewable assets. 

Despite the optimistic outlook, shares of BEPC are trending lower as a result of rising interest rates and looming inflation. But the stock remains a strong pick for two reasons. First, Brookfield Renewables is a dividend-paying stock, offering a yield of 4.92%. Second, it’s currently undervalued with a P/E ratio of 3.7

In short, BEPC is one of the best under-the-radar stocks primed for massive gains. The company shows steady long-term growth with a strong core business. 

MGM Resorts International (MGM)

A photo of the MGM logo on the MGM casino building.
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MGM Resorts (NYSE:MGM) is most well-known for its flagship properties, the Bellagio and MGM Grand but it also runs several entertainment venues and casinos across the U.S. and China. And while the company boasts a strong portfolio, shares are down 5% this year amidst a turbulent macroeconomic environment. Nevertheless, several signs point to greater growth, priming this stock for massive gains.

In its previous quarter, MGM reported strong earnings with revenue up 13% YOY to $4.4 billion. This growth is the result of casino revenues at MGM China which surged 71% YOY. Looking ahead, MGM’s investments in the sports betting arena including ventures such as iGaming and BetMGM will serve as major growth catalysts. The company also plans to expand its luxury offerings and international ventures with several investments in the pipeline.

Under-the-radar stocks like MGM are poised for a strong comeback after a sluggish post-pandemic recovery. MGM’s international ventures and growing sports betting business signal significant growth potential, making this undervalued play a great long-term buy.

On the date of publication, Divya Premkumar 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including stocks, crypto, blockchain and global policy.

Article printed from InvestorPlace Media, https://investorplace.com/2024/07/3-under-the-radar-stocks-primed-for-massive-gains/.

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