When it comes to investing, larger-capitalization enterprises are known for their predictability. These companies have established brands and a steady stream of consumers. Investors love them because they can easily forecast how these businesses will perform in the future. However, when it comes to overlooked growth stocks, predictability takes a back seat.
What these growth stocks lack in predictability, they make up for in potentiality. It’s a balancing act in the market. If you want a high level of predictability, you may have to sacrifice potential growth. On the other hand, if you’re looking for significant upside potential, you may have to accept a higher level of risk and volatility.
One example of an overlooked growth stock is Flywire (FLYW). Based in Boston, Massachusetts, Flywire operates in the infrastructure software space. The company provides payment solutions for various industries such as education, healthcare, travel, and business-to-business sectors. Financially, Flywire presents an enticing opportunity for investors. The market currently prices its shares at 4.61X trailing-year revenue, which is lower than the historical average. Analysts are forecasting strong revenue growth for the company, making it a stock worth considering.
Another overlooked growth stock to keep an eye on is DHT Holdings (DHT). This company operates in the oil and gas midstream segment, specifically in the transportation and storage of energy-related commodities. Despite some underperformance in earnings per share, DHT Holdings offers significant potential for growth. With analysts projecting a substantial increase in revenue over the next couple of years, this stock could be a risky but rewarding investment opportunity.
Protagonist Therapeutics (PTGX) is another overlooked growth stock in the biotechnology sector. The company focuses on developing peptide-based drugs for various medical conditions. Despite the high-risk nature of biotech stocks, Protagonist Therapeutics has shown impressive financial performance, with a significant earnings surprise in recent quarters. Trading at a discount compared to historical valuations, PTGX has the potential to see substantial growth in the coming years.
In conclusion, overlooked growth stocks offer investors the opportunity for significant returns, but they come with higher risk. It’s important to carefully evaluate these stocks and consider your risk tolerance before investing.