In this article, we will look at the 7 Best Under The Radar Stocks to Buy According to Analysts.
The Need to Address the National Debt, Deficit, and Tariffs
Billionaire investor and entrepreneur Mark Cuban recently shared his thoughts on the current state of the economy, politics, and the upcoming presidential election. In his interview on CNBC on September 26, Cuban expressed his concerns about the national debt and deficit, stating that neither candidate addressed these critical issues. He believes the country needs to come together and find a solution to reduce the deficit rather than engaging in a “competition” to see who can give away more. Cuban suggested that taxing stock buybacks could be a way to generate revenue, reduce the deficit, and change corporate behavior. He believes that the country needs a leader who can bring people together and find solutions to the problems facing the nation. Cuban also expressed his concerns about the impact of tariffs on the economy, citing the example of Intel and TSMC, which are already producing high-tech chips. He believes that the government needs to find ways to support American companies and create jobs rather than relying on tariffs.
Cuban noted that there has not been a boom in the manufacturing industry; the government’s policies, such as the I.R.A. (Inflation Reduction Act), have contributed to the manufacturing industry. However, 75% of manufacturing companies have fewer than 20 employees, and the government needs to find ways to support these small businesses. Cuban also mentioned that some people believe that the government should not have a steel policy, while others argue that it is necessary. Cuban believes that the world has changed and the United States needs to invest in AI to maintain its military dominance and competitiveness. He emphasized that whoever wins in AI will have the best military and that the country cannot afford to lose this battle.
Cuban believes that the government should not impose price controls, as it can have unintended consequences, the free market can take care of itself, and that the government should not intervene unless necessary.
Mark Cuban’s insights highlight the need to address critical issues such as the national debt, deficit, and the impact of tariffs on the economy. With that in context, let’s take a look at the 7 best under the radar stocks to buy, according to analysts.
Our Methodology
To compile our list of the 7 best under the radar stocks to buy according to analysts, we sifted through internet rankings to find 30 under the radar stocks. From that list, we narrowed our choices to the 7 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of October 2. We also added the number of hedge fund holding stocks in these companies, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their average upside potential as of October 2.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Under The Radar Stocks to Buy According to Analysts
7. Marvell Technology (NASDAQ:MRVL)
Upside Potential: 24.26%
Number of Hedge Fund Investors: 74
Marvell Technology (NASDAQ:MRVL) is a semiconductor company that designs and develops products for data infrastructure, including storage, networking, and connectivity solutions. The company’s products are used in a wide variety of applications, from 5G wireless networks to cloud data centers.
Marvell Technology (NASDAQ:MRVL) is well-positioned for growth acceleration and EBITDA margin expansion. The company’s Data Center (DC) segment is expected to drive overall growth, with revenue growing 7.9% in the quarter ended on August 3. The DC segment’s growth is driven by increasing investments in data centers. Marvell Technology’s (NASDAQ:MRVL) partnerships with major companies such as Microsoft and BlackRock also support the growth outlook.
The company’s EBITDA margin of 20%, has potential for significant expansion. The company’s guidance for next quarter also suggests a sharp jump in margins, with adjusted operating expenses expected to grow by 2% sequentially despite an expected sequential revenue growth of 14%.
Marvell Technology (NASDAQ:MRVL) has a strong growth outlook. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $92.11, which represents a 24.26% upside potential from its current levels. As of the second quarter, the company’s stock is held by 74 hedge funds, with a total stake valued at $3.57 billion.
6. Permian Resources (NYSE:PR)
Upside Potential: 31.50%
Number of Hedge Fund Investors: 51
Permian Resources (NYSE:PR) is an oil and gas exploration and production company focused on the Permian Basin in Texas and New Mexico. The company operates in one of the most significant oil-producing regions in the United States.
In Q2, Permian Resources’ (NYSE:PR) revenue increased 100% year-over-year to $1.25 billion. Net income skyrocketed 220% to $235.1 million, while earnings per share (EPS) came in at $0.38, beating analyst estimates of $0.36 per share. The company’s oil production also exceeded expectations, reaching 153,000 barrels per day and 339,000 barrels of oil equivalent per day.
The impressive financial results were driven by efficiencies in drilling and completion (D&C) activities, which led to faster cycle times and improved well performance. Additionally, the company’s gas and natural gas liquids (NLG) segments saw significant growth due to increased gas processing capacity. Furthermore, Permian Resources (NYSE:PR) reported improved cost control measures, which brought well costs down to $830 per foot, below the full-year guidance of $860 per foot.
Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $19.33, which represents a 31.50% upside potential from its current levels. As of the second quarter, the company’s stock is held by 51 hedge funds, with a total stake valued at $1.40 billion.
5. Aurora Innovation (NASDAQ:AUR)
Upside Potential: 40.69%
Number of Hedge Fund Investors: 19
Aurora Innovation (NASDAQ:AUR) is a self-driving technology company that is focused on developing autonomous vehicle software for the transportation and logistics industries. The company’s technology has applications in both passenger vehicles and commercial trucking and has partnerships with major automotive manufacturers.
Aurora Innovation (NASDAQ:AUR) is well-positioned to generate attractive profits in the autonomous trucking space. The company is one of two companies that will launch a viable autonomous trucking solution soon and appears to have a first-mover advantage. Aurora Innovation (NASDAQ:AUR) has partnered with companies including Uber, FedEx, Schneider, and Werner, which will help drive demand for its hardware and software that enable autonomous trucking.
Aurora Innovation’s (NASDAQ:AUR) autonomous trucking solution, known as Aurora Driver, has been extensively tested and has hauled over 7,000 loads for pilot customers across nearly two million commercial miles. Aurora Innovation (NASDAQ:AUR) has also been meticulous in ensuring that its technology is safe and utilizes best practices. The company’s partnership with Uber is particularly significant, as Uber Freight acts as an intermediary between shippers and carriers while offering logistical solutions.
Aurora Innovation (NASDAQ:AUR) projected $15 billion annual revenue by 2030, driven by autonomous trucking and potential robotaxi market entry makes it a compelling long-term investment. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $5.62, which represents a 40.69% upside potential from its current levels. As of the second quarter, the company’s stock is held by 19 hedge funds, with a total stake valued at $144.87 million.
4. Novavax (NASDAQ:NVAX)
Upside Potential: 41.62%
Number of Hedge Fund Investors: 20
Novavax (NASDAQ:NVAX) is a biotechnology company that specializes in the development of vaccines for infectious diseases, including COVID-19. The company’s protein-based vaccine has been authorized for use in various regions, and it continues to develop vaccines for other diseases, such as influenza and RSV.
Novavax (NASDAQ:NVAX) is positioning itself as a key player in the global vaccine market with a robust pipeline of candidates. In May, Novavax (NASDAQ:NVAX) signed a collaboration with Sanofi that granted Sanofi a license for the company’s adjuvanted COVID-19 vaccine. The deal includes $1.2 billion in potential payments for Novavax (NASDAQ:NVAX) and is a significant milestone in the the successful commercialization of new vaccines.
Novavax’s (NASDAQ:NVAX) COVID-19 vaccine targets the JN.1 variant. The company received emergency use authorization (EUA) from the FDA for its updated COVID-19 vaccine. The company’s partnership with Sanofi is progressing, with a Phase 3 trial for its COVID-19 and influenza combination (CIC) vaccine and stand-alone flu vaccine expected to begin in Q4 and top-line data expected by mid-2025. Novavax (NASDAQ:NVAX) could receive payments based on clinical success and regulatory approval, while commercial success would result in royalty payments.
Novavax (NASDAQ:NVAX) is a compelling investment opportunity for those who want to invest in the potentially lucrative influenza/COVID combination vaccine market. As of the second quarter, the company’s stock is held by 20 hedge funds, with a total stake valued at $302.79 million. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $20, which represents a 41.62% upside potential from its current levels.
3. Celsius Holdings (NASDAQ:CELH)
Upside Potential: 42.44%
Number of Hedge Fund Investors: 27
Celsius Holdings (NASDAQ:CELH) is a health and wellness company that produces energy drinks and fitness beverages to accelerate metabolism and burn calories. The company focuses on sugar-free energy drinks, particularly for women and health-conscious consumers, and its products are popular among fitness enthusiasts and health-conscious consumers.
Celsius Holdings (NASDAQ:CELH) has experienced phenomenal growth in the US market, expanding the energy drink category and gaining a 10-12% market share in the last decade. However, the company has been facing headwinds recently due to a slowdown in the energy drink market and fewer orders from PepsiCo, the company’s main distribution partner in the United States. Pepsi is destocking its inventory for Celsius Holdings’ (NASDAQ:CELH) products to help its cash flow. However, Celsius Holdings (NASDAQ:CELH) is expanding internationally and plans to make partnerships in Australia, New Zealand, the UK, and France, which could lead to significant revenue growth.
In the US, Celsius Holdings (NASDAQ:CELH) still has room to gain market share, with its current 12%. If the company can increase its market share to 15% or 20% within the next three years, it could drive significant revenue growth. Based on these growth prospects, it’s estimated that Celsius Holdings (NASDAQ:CELH) could grow its sales by 20% annually for the next three years, reaching $2.57 billion in revenue. Celsius Holdings’ (NASDAQ:CELH) margins and profitability have become strong and are trending higher. The company’s return on equity is also high, and it has achieved this without the use of debt.
With growth in distribution channels and partnerships, Celsius Holdings (NASDAQ:CELH) is poised to capitalize on the growing demand for energy beverages. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $48.47, which represents a 42.44% upside potential from its current level. As of the second quarter, the company’s stock is held by 27 hedge funds, with a total stake valued at $192.69 million.
2. Sensus Healthcare (NASDAQ:SRTS)
Upside Potential: 48.91%
Number of Hedge Fund Investors: 7
Sensus Healthcare (NASDAQ:SRTS) is a medical device company that provides non-invasive treatments for skin cancer and other skin conditions. The company’s products offer a non-surgical alternative to traditional treatments.
Sensus Healthcare’s (NASDAQ:SRTS) SRT-100+ is a compact and easy-to-use state-of-the-art system that uses Superficial Radiotherapy (SRT) to treat non-melanoma skin cancer and keloids. This provides a non-invasive, outpatient treatment option with a 30”x30” footprint and delivers a precise and calibrated dose of SRT that penetrates only five millimeters below the skin’s surface. This safe and effective treatment destroys malignant skin cancer cells while preserving healthy tissue, making it an ideal solution for basal cell carcinoma treatment and squamous cell carcinoma treatment,
In Q2, Sensus Healthcare’s (NASDAQ:SRTS) revenue increased 104% compared to the same period last year, driven by the increasing demand for the company’s SRT systems. Net income increased to $1.6 million, compared to a net loss of $400,000. Whereas the company’s adjusted EBITDA was $2.1 million, compared to a negative $1.0 million in the same period last year. The company has no debt, which reduces its financial risk and provides it with the flexibility to invest in its business.
The company’s “Fair Deal Agreement” program, which was launched in March, is gaining momentum, with 15 agreements signed to date. This program provides a recurring revenue stream for the company as customers commit to purchasing SRT systems and services over a period of time.
Sensus Healthcare (NASDAQ:SRTS) is also expanding its international presence, with a focus on Asia. The company shipped two units to China and one to Taiwan in Q2 and is working to establish distribution in South Korea and Japan. This expansion will help to drive revenue growth and increase the company’s global market share.
The demand for SRT systems is increasing, driven by the growing need for effective treatments for non-melanoma skin cancer and keloids. Sensus Healthcare’s (NASDAQ:SRTS) is well-positioned to capitalize on this trend, the company also has a competitive advantage in the market as its SRT systems being highly effective and cost-effective.
Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $10.67, which represents a 48.91% upside potential from its current levels. As of the second quarter, Sensus Healthcare’s (NASDAQ:SRTS) stock is held by 7 hedge funds, with a total stake valued at $3.94 million.
1. Coursera (NYSE:COUR)
Upside Potential: 71.33%
Number of Hedge Fund Investors: 27
Coursera (NYSE:COUR) is a leading online education platform that offers a wide range of courses and degree programs from top universities and organizations worldwide. The company has expanded its offerings to include a wide range of topics, from data science to business management.
One of the key drivers of the company’s growth is its ability to innovate and adapt to changing market trends. Coursera (NYSE:COUR) has launched several new products and initiatives, including its GenAI Academy, which provides employees and executives with a general understanding of generative AI, and Academy for Teams, a product that helps enterprises leverage GenAI to improve productivity. These offerings have resonated well with learners, with Coursera (NYSE:COUR) adding 7 million new learners in Q2, marking the 15th consecutive quarter of more than 5 million learners added. Coursera (NYSE:COUR) now has over 150 million learners on its platform.
Looking ahead, Coursera’s (NYSE:COUR) growth is forecasted to gradually climb back to the mid-teens, driven by an improving macro environment, innovative products, and expanding degree programs. Coursera (NYSE:COUR) offers an attractive investment opportunity for investors looking to capitalize on the growing demand for online education. Industry analysts forecast the company to increase its earnings by over 180% this year and have a consensus on the stock’s Buy rating, setting an average share price target at $15.92, which represents a 71.33% upside potential from its current levels. As of the second quarter, Coursera’s (NYSE:COUR) stock is held by 27 hedge funds, with a total stake valued at $79.34 million.
While we acknowledge the potential of Coursera (NYSE:COUR) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than COUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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