These under the radar companies might not be making the headlines, but their potential for growth makes them attractive buys. Unlike many of the high-flying tech giants in 2024, sleeper stocks have not yet achieved glory. Also they don’t necessarily have to be smaller companies, but can be uniquely positioned to expand their earnings and market share over the next decade. This positive backdrop allows investors to capitalize on the potential upside of stocks with a promising earnings growth outlook.
If you’re looking for the best place to allocate your capital in the next few months, these companies present a lot of promise.
Now, let’s discover the 3 best sleeper stocks to buy with $10K right now!
Walmart (WMT)
Walmart (NYSE:WMT), a household name in retail, is among the best sleeper stocks to buy with $10K. The company’s expansive reach and significant strides in e-commerce make it well positioned for long term growth.
In recent years, Walmart has invested heavily in e-commerce, omnichannel capabilities and supply chain enhancements. These initiatives have not only strengthened its competitive position against online giants like Amazon (NASDAQ:AMZN) but also opened up new avenues for growth. Moreover, Walmart’s continued strength in international markets will be a strong growth driver over the next decade. In Q1 FY25, revenue increased 6% year-over-year (YOY) to $161.5 billion. Global e-commerce sales swelled 21% from the year prior, driven by strong international sales volume. Additionally, Walmart’s advertising business is picking up steam. This included 26% growth at Walmart Connect, and 27% growth, led by Flipkart and Walmex. Business is booming, and the company’s omnichannel strategy is working. For investors searching for stability and long term growth, WMT stock should definitely be a top contender.
Emcor Group (EME)
Emcor Group (NYSE:EME) is a leading provider of electrical and mechanical construction services in the United States. Its diversified business model is built for resilience and its valuation is looking quite attractive at current levels.
Emcor Group’s expertise lies in its ability to provide critical infrastructure services to businesses across the country. With the bipartisan Infrastructure Bill signed into law in November of 2021, Emcor is uniquely positioned to benefit from increased spending. While this is certainly a positive backdrop, Emcor’s financial performance will be what drives the stock price higher. The company’s strategy to grow through acquisitions is working, significantly boosting its revenue and earnings potential. In FY23, Emcor saw record revenue, earnings and free cash flow. Its growth also continues to accelerate in the 2024 fiscal year, with its backlog growing handsomely alongside it. In the first quarter its earnings increased 80% YOY, with remaining performance obligations hitting a record $9.18 billion. Demand for its services is strong, and its price-to-earnings of 24x is still attractive when factoring in its long term growth prospects.
Fiserv (FI)
Fiserv (NYSE:FI) provides financial technology services to leading financial institutions. Its wide range of services offerings and impressive financial profile make it a compelling sleeper stock to buy in 2024.
One of the key drivers of Fiserv’s growth is its focus on digital transformation. As the financial industry continues to shift towards digital solutions, Fiserv’s expertise in providing cutting-edge technology and services becomes increasingly valuable. Its product offerings range from payment processing, banking and fraud prevention tools. Moreover, its strategic acquisition of First Data in 2019 has worked wonders for its bottom-line and market positioning. Since then, the company has seen steady revenue and earnings growth, along with significant operating margin expansion. In the first quarter of 2024, revenue increased 7% YOY to $4.88 billion. Net earnings swelled 31% YOY to $735 million, or $1.24 per share. Additionally, its merchant solutions business remains strong growing 36% from the year prior. With earnings per share forecast to rise more than 65%, FI stock should definitely not be slept on in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.