But bargain stocks exist. You’ll just need to dig a bit to find them. Two of these bargain stocks have unstoppable strength and unlimited upside ahead. The third is a stalwart performer who nevertheless keeps beating wider economic malaise post win after win. These bargain stocks may be your best bet to diversify away from overvalued mega-caps while capturing emerging trends that may prove to be the next big thing capturing Wall Street’s attention.
AST SpaceMobile Inc (ASTS)
AST SpaceMobile Inc (NASDAQ:ASTS) started the week off strong. After months (or years) of ups and downs, the space-based telecommunications company finally announced what may be the final step toward proper commercialization: a revenue-sharing agreement with AT&T (NYSE:T) to cover gaps in the legacy provider’s global cell coverage with AST’s low-earth satellites. On top of that, the company finally broke free from its “pre-revenue” shackles, posting $500,000 in sales from a government contract leveraging its BlueWalker-3 satellites.
Shares surged to their highest level since December 2023 on the news, though still trading well below pandemic-era highs. Worse yet, excited investors saw much of the rapid gains dissipate as market forces realized that, though the AT&T deal is monumental, there’s still a long row to hoe before full-blown commercialization efforts bear fruit. Still, shares settled 80% higher than last week, setting this bargain stock to buy up for another leg higher if it can retain momentum. Patient investors should recognize today’s valuation as cheap €” from a forward-looking perspective if not absolute value €” and consider this space stock one worth buying ASAP.
Sharkninja (SN)
Sharkninja (NYSE:SN) stock can’t stop winning, posting a massive 25% return over the past month, contributing to its overall 187% gain since first listing publicly last summer. Despite its per-share pricing strength, the stock remains a bargain €” but investors seem to generally ignore the appliance and consumer goods stock’s ultimate strength.
Much of the recent bullish action surrounding Sharkninja stock came from a strong earnings report that remained resilient despite economic turbulence, which is particularly notable considering even retail giants like Target (NYSE:TGT) are rapidly realigning themselves to adapt to continued inflation and reduced consumer sentiment. Sharkninja sales climbed nearly 25% over the past quarter, while net income increased 24.8% year-over-year. Likewise, the company’s forward-looking statements remain strong and include up to a 20% yearly earnings increase.
Some readers may remember that Sharkninja has posted a 20% annual sales increase yearly since 2008, so its current strength aligns with past trends. Still, the stock is generally under-appreciated and a bargain considering its multiple expansion plans and clear executive ability to steer the ship in the right direction.
GigaCloud Technology (GCT)
GigaCloud Technology (NASDAQ:GCT) can’t catch a break. Though each successive earnings report marks major improvements, the bargain stock remains criminally undervalued, trading at just 12x earnings. Likewise, per-share pricing can’t seem to break through out of the roughly $35 range it’s traded at since January.
GigaCloud’s first-quarter earnings include nearly 100% year-over-year sales increases alongside a 71% net income expansion. The B2B product sourcing company expects further upside ahead, noting that recent capital expenditures reduced its bottom line but that “these investments will better position GigaCloud to meet surging Marketplace buyer and seller demands while further enhancing efficiency.”
GigaCloud recently unveiled a sweeping initiative within furniture seller markets, rolling out a branding-as-a-service campaign to let business owners white label existing furniture manufacturing to establish their own sales stream and break into the tricky wider furniture market. Plans like these show that GigaCloud is adept at identifying new market opportunities and bodes well for the bargain stock moving forward.
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.