Yahoo Finance 8 Lesser-Known Stocks To Bet on This Summer
The stock market has been on a roll lately and some stocks have been skyrocketing. Artificial intelligence darling Nvidia is at the forefront, shooting up 217% in the past year, and up 31% in the past month, following blockbuster earnings in May. In turn, the company crossed the $3 trillion market cap point on June 5, surpassing Apple.
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Additionally, some lesser-known stocks are also worth looking at this summer, as these have also many reasons to be promising, experts have said.
“While there are many stocks that people know about that will likely do well this summer, such as Nvidia, Apple, and Google, there are also many stocks that people have never thought about investing in that will do just as well,” said Michael Collins, CFA, CEO and founder, WinCap Financial.
Here are a few lesser known stocks to follow this summer:
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1. Bank OZK
According to Collins, this is a rapidly growing and financially stable bank, making it a good investment choice.
“The company has shown consistent growth in earnings and assets over the past several years, with a strong focus on commercial and real estate lending,” said Collins.
In addition, Collins noted that Bank OZK has a low-risk profile and has been able to maintain a healthy loan portfolio despite economic downturns that occurred during the Covid-19 pandemic.
“The bank also boasts a strong management team with extensive industry experience, providing confidence in the company’s long-term stability and success,” he said. “With its solid financial track record and strategic approach to growth, investing in Bank OZK stock offers investors potential for both capital appreciation and steady dividend income.”
2. Alibaba
Alibaba is the largest e-commerce company in China, which is one of the fastest-growing consumer markets in the world — which provides a significant opportunity for revenue and profit growth, according to Collins.
Further, the company has a diverse portfolio of businesses such as e-commerce, cloud computing and digital payments, making it less reliant on any single source of income.
What’s more, Alibaba has a strong management team with a proven track record of success and an innovative culture that allows for continuous adaptation to market trends, added Collins.
“With its growing international presence and partnerships with major global brands, Alibaba has strong potential for further expansion and increasing its market share,” he said. “Investing in Alibaba stock offers both stability and growth potential in the long term.”
3. AbbVie
AbbVie is a leading pharmaceutical company with a proven track record of success, making it a strong contender for investment, according to Collins.
He added that the company has a diverse portfolio of products spanning multiple therapeutic areas, providing stability and potential for growth.
“With a focus on research and development, AbbVie is constantly expanding its pipeline and bringing innovative treatments to market,” he noted, adding that the company has a solid financial standing, with consistent revenue and earnings growth over the years.
“Its strong cash flow generation has allowed AbbVie to regularly increase dividends, making it an attractive choice for long-term investors seeking stable income,” he said, noting that AbbVie’s strong market position, diverse product offering, and solid financials make it a compelling investment opportunity.
4. Mind Medecine
The psychedelics sector Mindmed recently passed phase 2b trials for its treatment of generalized anxiety disorder, said Michael Nauss CMT, CAIA, founder at StatsEdgeTrading.
“With only a current market cap of $200 million, this could easily be a buyout target for a larger pharma company as the trials continue to show positive results,” Nauss said.
5. MicroStragey
John Matze, co-founder of social network Hedgehog, said that because of their heavy exposure to Bitcoin, companies such as MicroStrategy and Semler Scientific could end up doing well.
“They have profitable businesses that also have the potential of experiencing additional upside because of their exposure to an asset, BTC, that is experiencing parabolic growth,” added Matze.
6. BlackRock’s iShares Bitcoin Trust
Phillip Shoemaker, executive director of Identity.com, noted that BlackRock’s IBIT shares will likely do well given the meteoric interest in Bitcoin, which is increasingly seen as a global store of value.
“What’s interesting about this and the other BTC ETFs [exchange traded funds] is that they give exposure to an asset that is, well, perhaps the scarcest asset in the world,” he said. As he noted, there will only ever be 21 million Bitcoin, a scarcity that makes it extremely valuable.
“It’s better than gold, in my opinion, and buying Bitcoin in ETF form enables an easy and relatively safe way to invest,” he said.
7. Dell
Hedegehog’s Matze also argued that companies such as Dell are going to be the “quiet winners of the AI revolution,” primarily because they are server-production companies where AI chips have to be installed for the data centers.
In the same vein, he said that companies such as Ubiquity are the new and cutting-edge network-processing companies that are replacing the likes of Cisco.
“In the rush to buy more AI equipment, you can’t power it without the networking gear to connect it all up,” he added.
8. Coinbase
According to Rebecca Liao, CEO of Saga, while there is mounting interest from traditional financial firms in the digital asset space, there still might be some hesitancy among more traditional investors to engage directly with coins such as Bitcoin, Ethereum, Solana and others.
“That said, with this mounting interest, the broader crypto market is gaining momentum and appearing to be on the verge of a breakout,” she said. “So, with this in mind, a great proxy for getting traditional exposure to this new market is Coinbase’s stock.”
As she noted, Coinbase is the foremost exchange for crypto in the United States, and its price reflects the broader sentiment of the digital asset market.
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“It does seem as though $COIN is poised to continue on its uptrend, especially as these ETFs for Bitcoin and, soon, Ethereum continue to gain interest,” she added.
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This article originally appeared on GOBankingRates.com: 8 Lesser-Known Stocks To Bet on This Summer
