In this piece, we will take a look at the 12 under the radar stocks with massive upside for 2024. If you want to skip our overview of shareholder ownership and how shares can jump if they come 'over' the radar instead of under, then you can jump ahead to 5 Under-the-Radar Stocks With Massive Upside for 2024.
Investing in stocks is quite different these days compared to even just a decade back. Broadband internet combined with the rapid boom in personal computing devices, digital banking, and financial technology services allows anyone willing to take the risk to try their hand at stocks. This democratization of the stock market means that as opposed to the Wall Street of the 2000s and the 1990s, now, anyone can set their trading setup, consume information, and see how fate plays out on the S&P 500.
At the same time, while there are more avenues of trading available, the number of equities that are available for trading also runs in the thousands. For our everyday retail trader, this means that some stocks will always be under the radar as sifting out small and little known companies that might be the next Apple Inc. (NASDAQ:AAPL) might remain out of the spotlight for retail traders. Professional investors such as hedge funds benefit from their significant computing, financial, and human resources which enable them to go through countless firms each day to see which might be poised for growth.
As a result of all this, and other factors such as management decisions, stocks can also be bifurcated along their ownership structure. Some stocks, such as the mining giant BHP Group Limited (NYSE:BHP) or the American depository receipts of the well known Japanese car manufacturer Toyota Motor Corporation (NYSE:TM) are well known among retail investors and also have a large portion of their share ownership represented by them. Data from Refinitiv shows that for BHP, institutional and insider investors own 3.84% of the total shares outstanding, while for Toyota this percentage drops down to just 1.51%. This is unsurprising given that not only do these firms have billions of shares outstanding, but also since they are global brands.
Other stocks are remarkable for their significant institutional and insider ownership. For instance, the software giant Atlassian Corporation (NASDAQ:TEAM) has 157.36 million shares outstanding and 155.6 million shares as its float. Despite this, 92% of its stock is held by institutions, ensuring that even if the stock generates substantial hype, it will nevertheless remain under the radar as large numbers of retail investors will remain unable to add the stock to their portfolios and monitor it over the long term.
At the same time, investing in under the radar stocks can also be quite lucrative. After all, rapid share price appreciations are often driven by a large number of people feeling confident about a stock's future and starting to buy the shares. Perhaps the best example of this and one that's relevant to our discussion of Wall Street's democratization is the stock of the well known video game retailer GameStop Corp. (NYSE:GME). Part of the meme stock craze that briefly took over the stock market, GameStop's shares soared in triple digit percentages in the blink of an eye as retail investors joined forces on social media and bought the stock in bulk. This also led to massive losses for hedge funds which had sold the shares short based on the firm's fundamentals, and for a brief time period, it appeared that Wall Street had permanently changed.
So, which stocks are currently under the radar and are seeing significant upside from analysts? We took a look, with some top picks being Roblox Corporation (NYSE:RBLX), JD.com, Inc. (NASDAQ:JD), and Ulta Beauty, Inc. (NASDAQ:ULTA).
12 Under-the-Radar Stocks With Massive Upside for 2024
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Our Methodology
To make our list of the best under the radar stocks with significant upside we first made a list of under the radar stocks by sifting through coverage in the financial media. Then, the top 20 stocks with the highest analyst average share price target upside were narrowed down. Finally, these were ranked by the number of hedge funds that had bought the shares during Q4 2023, and the best under the radar stocks were picked.
For these top under the radar stocks, we used hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
12 Under-the-Radar Stocks With Massive Upside for 2024
Concentrix Corporation (NASDAQ:CNXC) is one of the biggest information technology companies in the world, with close to half a million employees. It offers analytics, customer management, and other software products and services. The firm has struggled on the financial front as of late since it has missed analyst EPS estimates in three out of its four latest quarters.
As of Q4 2023 end, 20 out of the 933 hedge funds profiled by Insider Monkey had bought and owned Concentrix Corporation (NASDAQ:CNXC)'s shares. Lauren Taylor Wolfe's Impactive Capital was the biggest shareholder due to its $334 million stake.
Just like JD.com, Inc. (NASDAQ:JD), Roblox Corporation (NYSE:RBLX), and Ulta Beauty, Inc. (NASDAQ:ULTA), Concentrix Corporation (NASDAQ:CNXC) is an under the radar stock with huge upside.
Editas Medicine, Inc. (NASDAQ:EDIT) is a biotechnology company focusing on using genetic editing to help patients. Despite the fact that it's a gene editing stock and one that has also focused on making highly lucrative treatments for Sickle Cell disease, the shares are down by 47% year to date. Editas Medicine, Inc. (NASDAQ:EDIT)'s 2024 stock performance is divided along the lines of a 10% gain prior to its fourth quarter earnings report in February and the resulting pessimism that has seen the shares drop by 53% since then.
For their fourth quarter of 2023 shareholdings, 22 out of the 933 hedge funds surveyed by Insider Monkey were the firm's shareholders. Editas Medicine, Inc. (NASDAQ:EDIT)'s largest hedge fund investor is David Kroin's Deep Track Capital as it owns $55.4 million worth of shares.
Ferroglobe PLC (NASDAQ:GSM) is a British industrial raw materials company that provides silicone and ferrosilicon products for a variety of use cases. The average of two share price targets for the firm is $10, pricing in a 93% upside to the stock.
During last year's fourth quarter, 25 out of the 933 hedge funds covered by Insider Monkey's research had bought a stake in Ferroglobe PLC (NASDAQ:GSM). Jeremy Hosking's Hosking Partners was the biggest shareholder due to its $30.7 million investment.
Photronics, Inc. (NASDAQ:PLAB) is an American semiconductor firm headquartered in Brookfield, Connecticut. It sells crucial materials called photomasks that are indispensable to the chip fabrication process as they allow manufacturers to accurately replicate designs on the silicon. Financial performance has been mixed as of late, with EPS misses in two out of the four latest quarterly earnings.
Insider Monkey surveyed 933 hedge fund portfolios for their investments during 2023's final quarter to find 26 Photronics, Inc. (NASDAQ:PLAB) shareholders. Chuck Royce's Royce & Associates was the largest investor as it held $24.7 million worth of shares.
Organon & Co. (NYSE:OGN) is a New Jersey based healthcare company that sells products for female use. The shares are rated Buy on average, and the average analyst share price target is $21.50.
During December 2023, 30 out of the 933 hedge funds tracked by Insider Monkey had bought and owned the firm's shares. Organon & Co. (NYSE:OGN)'s biggest stakeholder is Ken Griffin's Citadel Investment Group through its $60.7 million investment.
Coherent Corp. (NYSE:COHR) is another backend semiconductor firm whose products are used in the chip fabrication process. The firm has beaten analyst EPS estimates in three out of its four latest quarters, and the shares are rated Buy on average with an average share price target of $66.67.
As of December 2023 end, 35 out of the 933 hedge funds covered by Insider Monkey were Coherent Corp. (NYSE:COHR)'s investors.
Janus International Group, Inc. (NYSE:JBI) is a sizeable building materials and products company whose products cater to the market for storage spaces. April 2024 turned out to be a great month for its investors as Janus International Group, Inc. (NYSE:JBI) received a credit rating upgrade from Moody's.
36 out of the 933 hedge funds part of Insider Monkey's Q4 2023 database had held a stake in the firm. Richard Mashaal's Rima Senvest Management was the largest Janus International Group, Inc. (NYSE:JBI) investor as it owned $75.6 million worth of shares.
Roblox Corporation (NYSE:RBLX), Janus International Group, Inc. (NYSE:JBI), JD.com, Inc. (NASDAQ:JD), and Ulta Beauty, Inc. (NASDAQ:ULTA) are some top under the radar stocks that hedge funds are buying.