To that end, there are still a few overlooked stocks to buy that offer viable investment opportunities, even amid tight economic conditions that prompt many investors to hoard cash or stick to reliable index funds. These stocks offer a combination of growth, stability, and income, and they span a diverse range of market caps and investment categories. While no investment is guaranteed, these overlooked gems have the potential to become some of the top performers in your portfolio over the coming years.
Evolv Technologies (EVLV)
As public and private physical security becomes increasingly integral to event and infrastructure planning, AI stocks like Evolv Technologies (NASDAQ:EVLV) are set to transform threat detection. Evolv’s innovative screening technology detects concealed weapons and employs advanced threat-detection tools to prevent harmful acts, setting it apart in the security sector.
One of the most compelling features of Evolv’s technology is its AI-driven system, which processes security screenings much faster than traditional methods, reducing security queues and enhancing overall efficiency.
For investors, Evolv presents an attractive opportunity. Despite being a relatively new market entrant, the company expanded its client base by nearly 300 last year, fueling a 120% increase in annual recurring revenue. However, it’s important to note that Evolv is not yet profitable, reflecting the typical growth trajectory of emerging tech companies.
Recently, Evolv’s stock experienced a downturn following an earnings miss, yet it remains a promising candidate among stocks to buy within the small-cap AI stock category. With its proven market potential and innovative technology, Evolv’s current valuation could represent a significant opportunity for long-term growth.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is well-recognized as a Bitcoin (BTC-USD) mining company, but its diverse potential elsewhere is often overlooked, positioning it among stocks to buy. Mining Bitcoin has become increasingly costly, offering diminishing returns, while AI operations require substantial power for even their most basic functions. This situation makes Riot a potentially ideal partner for AI enterprises.
Riot Platforms has already tapped into selling excess energy, redirecting it to local municipalities and utility operators, with such sales generating $71.2 million in revenue last year. Although Riot has not yet ventured into specifically catering to the AI industry’s energy needs, the evolving economic landscape suggests that such a partnership could soon represent opportunities for both sides.
Likewise, new data center construction doesn’t match the burgeoning demand for AI. This suggests that existing GPU facilities, like those owned by Riot, could soon be in high demand. Investors in Riot can appreciate not only the company’s future AI stock potential but also its current involvement in the crypto market, which remains robust, as evidenced by Bitcoin’s 50% gain over the past six months.
GigaCloud Technology Inc (GCT)
GigaCloud Technology (NASDAQ:GCT) could be on the cusp of a significant turnaround, with its shares climbing 50% since January, yet it remains undervalued according to most metrics. Today, it trades at only 11.5x earnings. Over the past month, its share price has stabilized, possibly indicating a consolidation phase that could precede further gains.
GigaCloud’s first-quarter earnings showcased a near doubling in sales year-over-year and a 71% rise in net income. As a B2B product sourcing firm, GigaCloud’s management is optimistic about continued growth, though they recognize recent capital investments have temporarily dented profits. However, these investments are key to enhancing the company’s capacity to meet rising marketplace demands and boost operational efficiency.
Furthermore, GigaCloud recently initiated a significant move within the furniture-selling arena by launching a branding-as-a-service campaign. This strategy enables business owners to white-label existing manufacturing processes to develop their own sales outlets and expand into the broader furniture market. Such innovative approaches highlight GigaCloud’s skill at seizing new market opportunities, suggesting strong potential for future growth in this overlooked stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.