In the current bullish market conditions, it is a great time to consider buying stocks to benefit from the overall upward trends. While major AI and biotech stocks are getting a lot of attention for their potential, there are some stocks with similar growth potential that are being overlooked and priced lower as a result.
Here are three stocks that are flying under the radar but have significant growth potential for the future. These stocks can be added to portfolios without the worry of inflated prices due to hype and high expectations.
Pinterest (PINS):
Pinterest saw a peak during the pandemic when online browsing was at its highest. Although it has not yet reached its historic highs, it is in a strong position to do so. The company reported strong momentum with revenue growth of 12% year-over-year and a record high of 498 million Global Monthly Active Users. Pinterest’s ad revenue has been positively impacted by increased user traffic, and the company is expected to see growth in revenue from $3 billion to $4 billion by 2025.
Pure Storage (PSTG):
Pure Storage is positioned to benefit from the growing demand for storage in the AI sector. While its competitor Micron may be more favored by investors, Pure Storage offers a state-of-the-art server storage solution as a subscription for businesses. The company’s subscription revenue grew by 26% year-over-year in fiscal 2024, and it is expected to have steady growth in the future as more businesses require its services to support new AI programs.
Roku (ROKU):
Roku experienced a peak in usage during the pandemic but has since been overlooked by investors. However, the company’s most recent quarterly report showed positive results with a 19% year-over-year increase in net revenue. With a growing number of streaming households and increased streaming hours per household, Roku has the potential to steadily grow its ad revenue. The company’s revenue is diversified through devices, platforms, and ads, making it well-positioned to benefit from the popularity of at-home viewing.
In conclusion, these three stocks have strong growth potential and are currently being overlooked by many investors. They offer the opportunity to add value to portfolios without the inflated prices seen in other popular stocks.