Are you tired of investing in stocks that are always the “talk-of-the-day” and on everyone’s top pick, and you are looking for some under-the-radar stocks? If your answer is yes, then you need to understand that not all under-the-radar stocks are hidden gems that can make you rich without the rest of the market noticing.
And the stocks that get a lot of attention also experience a lot of investor activity which can be both a good and a bad thing. Such stocks can rise and fall quite sharply and against the general current of their respective sector or the stock market as a whole because investors quickly react to news associated with such stocks (both positive and negative).
But buying relatively unknown stocks before they are picked up by most investors and consequently gain more visibility momentum can be a smart way to become profitable. And if that’s what you are aiming for, there are two under-the-radar stocks that should be (irony!) on your radar.
A lithium company
With a growing focus on renewables like solar and wind energy and EV vehicles, batteries are on their way to becoming a very coveted commodity. Consequently, the metals used to create these batteries are also growing in demand, and Lithium is one of them. The U.S. has the ninth-largest Lithium reserves, and that’s where Vancouver-based Standard Lithium (TSXV:SLL) has two active Lithium projects.
Standard Lithium extracts the metal from brine and controls the most advanced and the largest Lithium brine project in the US (based in Arkansas). It has control over 150,000-acre of operating brine leases. The company process about 5.4 billion gallons of Lithium rich brine a year.
And that’s when EV momentum is building up. The demand for Lithium is only going to go up with more electronic devices and electric vehicles hitting the market.
The company has an impressive balance sheet, minimal debt, a decent cash position, and a pretty expensive price tag. But that can be justified by the company’s exceptional five-year compound annual growth rate (CAGR) of 66%. In the last five years, the company grew its investors’ money by over 2,000%. In a future where the demand for Lithium rises up exponentially, Standard Lithium can prove to be a highly profitable investment.
A software company
Another relatively less known tech company that you might consider investing in is Quisitive Technology Solutions (TSXV:QUIS). It’s a cloud innovation company and also offers payment solutions. Cloud is the core of Quisitive technology, and its cloud solutions cover almost the whole spectrum, from transformation and infrastructure to analytics and application development.
It has 11 employee hubs in four countries (most are in the U.S.), 375 employees, and over 7,500 customers around the globe. Apart from its core services, the company also focuses on acquisitions and has acquired at least five companies since its inception in 2016. Quisitive works exclusively with Microsoft’s cloud products.
The company is financially stable and has a strong balance sheet. In 2020, the company grew its revenues quite aggressively compared to its 2016 numbers, and it’s still holding up the income ceiling it attained during the pandemic. The stock was tracing that progress and grew over 129% in the last 12 months.
The two under-the-radar stocks, even though they are quite overvalued right now, might have explosive growth potential. The demand for lithium is expected to keep surging till 2030 at least and is expected to grow at least three times in the decade.
Quisitive is in the lucrative “cloud” business, and the market is expected to keep growing till 2025 at least.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned.