5 Under-the-Radar Stocks That Are on The Move

In this article, we discuss 5 under-the-radar stocks that are on the move. If you want to see more stocks in this selection, check out 12 Under-the-Radar Stocks That Are on The Move.

5. Flex Ltd. (NASDAQ:FLEX)

Upside Potential: 8.43%
Current Price as of July 20: $28.59
52 Week High: $28.82
Number of Hedge Fund Holders: 64

Flex Ltd. (NASDAQ:FLEX) provides companies with real-time insight and logistics services for their supply chains. The stock has gained about 32.93% since the start of the year and reached near 52-week high, showing no signs of losing momentum.

Flex Ltd. (NASDAQ:FLEX) has a Strong Buy rating from 6 analysts, with an average price target of $31. This is an average of their forecasts, which range from $30 to $34. Compared to the current price of $28.59, this means an 8.43% rise in value.

As of the close of Q1 2023, 64 hedge funds owned stakes in Flex Ltd. (NASDAQ:FLEX), up from 61 in the previous quarter, as per Insider Monkey’s database. Andrew Wellington and Jeff Keswin’s Lyrical Asset Management was one of the company’s leading stakeholders in Q1.

4. Teck Resources Limited (NYSE:TECK)

Upside Potential: 24.10%
Current Price as of July 20:  $52.89
52 Week High: $49.34
Number of Hedge Fund Holders: 66

Teck Resources Limited (NYSE:TECK) is a resource company that mines and develops copper, steelmaking coal, zinc, and energy properties. It also makes germanium and indium. The stock has risen 16.17% since the beginning of the year.

Teck Resources has a Strong Buy rating from 9 analysts, with an average price target of $52.89. This is an average of their forecasts, which vary from $48 to $59.23. Compared to the current price of $52.89, this implies a 24.10% increase in value.

At the end of Q1 2023, 66 hedge funds in Insider Monkey’s database owned stakes in Teck Resources Limited (NYSE:TECK), up from 62 in the previous quarter. The collective value of these stakes is over $ 2.09 billion.

3. Mastercard Incorporated (NYSE:MA)

Upside Potential: 11.60%
Current Price as of July 20: $399.19
52 Week High: $404
Number of Hedge Fund Holders: 138

Increasing consumer spending is one factor that has made payment stocks some of the best bets as the US economy bounces back from the COVID-19 slowdown. Mastercard Incorporated (NYSE:MA) is one stock that stands out in the financial sector as it offers transaction processing and payment-related products and services internationally.

According to Ethridge of CIC Wealth, Mastercard Incorporated (NYSE:MA) is one company wedged in every transaction people make with credit and debit cards worldwide. The fact that the company takes a piece of the trillions of dollars’ worth of transactions that take place worldwide makes the stock one of the best plays in the financial sector.

Mastercard Incorporated (NYSE:MA) stock is up by about 13% year to date, trading near its 52-week high of $404 while showing signs of breaking out. With an average price target of $445.50, the stock has the potential to rally by 11.60% from current levels.

As of the first quarter of 2023, 138 hedge funds in Insider Monkey’s database held stakes in Mastercard Incorporated (NYSE:MA). The most prominent shareholder in Mastercard Incorporated (NYSE:MA) is Charles Akre’s Akre Capital Management, with 5.87 million shares valued at $2.13 billion.

In the investor letter for the second quarter of 2023, LVS Advisory provided its perspective on Mastercard Incorporated (NYSE: MA) with the following remark:

“We have owned Mastercard Incorporated (NYSE:MA) on and off since inception. We re-initiated the position in summer 2022 during the broader market sell-off. The stock traded off to an attractive valuation and we believed the tailwinds from a reopening of international travel still had legs. This was a small portfolio position and the stock has appreciated in the year we have owned it. The stock’s valuation is once again rich and the tailwinds from international travel and consumer spending appear to be tapering. We sold the position because we believe other opportunities within our existing portfolio will generate superior returns.”

2. Uber Technologies, Inc. (NYSE:UBER)

Upside Potential: 14.07%
Current Price as of July 20: $46.75
52 Week High: $47.90
Number of Hedge Fund Holders: 144

Uber Technologies Inc. (NYSE:UBER) is an under-the-radar stock that has nearly doubled in value as its ever-changing mobility business approaches sustainable growth. The stock is already up by 80% year to date and trading near its 52-week high of $47.90 a share.

The impressive run in the market stems from the company emerging as one of the beneficiaries of generative AI that it is using to enhance its ride-sharing business. The company uses the technology for route planning, demand forecasting, and customer communication.

Generative networks developed by the company have increased data collection, significantly enhancing decision-making processes. As Uber Technologies Inc. (NYSE:UBER) resorts to AI to strengthen its mobility, delivery, and freight edge, analysts on Wall Street remain confident about its long-term prospects.

Consequently, Uber Technologies Inc. (NYSE:UBER) boasts an average price target of $47.90, implying a 14.07% upside potential from current levels.

According to Insider Monkey’s first quarter database, 144 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), compared to 135 funds in the prior quarter. Altimeter Capital Management is the biggest stakeholder of the company, with 13.34 million shares worth $422.77 million.

In its Q1 2023 investor letter, RiverPark Advisors, an investment advisory firm, made the following statement about Uber Technologies, Inc. (NYSE:UBER):

“UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now solidly profitable with the potential for substantial margin expansion and free cash flow generation to come.”

1. Visa Inc (NYSE:V)

Upside Potential: 15.83%
Current Price as of July 20: $240.68
52 Week High: $245.37
Number of Hedge Fund Holders: 173

Visa Inc (NYSE:V) is another payment giant that Ethridge is maintaining a close watch on in the financial sector. The company generates significant fees for every transaction people make using a Visa credit or debit card. Like Mastercard, Etheridge believes the company has a recession-proof business model that affirms its long-term prospects.

Visa Inc (NYSE:V) is one of the best under-the-radar stocks, boasting a high-quality business in a thriving payment industry. Consumers in economically developed countries like the US are likely using Visa cards to make payments. With the annual global payments industry payments expected to surpass $3 trillion, Visa should be one of the beneficiaries.

While the stock is up by about 16% year to date, it is close to its 52-week high of $245.37, with momentum to the upside building up. Analysts on Wall Street have an average price target of $278.79, implying a 15.83% upside potential from current levels.

As of the end of the first quarter, there were 173 hedge funds in Insider Monkey’s database that held stakes in Visa Inc (NYSE:V), compared to 177 funds in the prior quarter. TCI Fund Management, with 19.29 million shares, is the biggest stakeholder in the company.

In its investor letter for the second quarter of 2023, Manole Capital Management shared its thoughts on Visa Inc. (NYSE: V) with the following statement:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa Inc. (NYSE:V) or Mastercard, that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”

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