2 Under-The-Radar Stocks Ready for Takeoff When Rate Cuts Arrive
Investing.com | Feb 22, 2024 20:12
- The magnificent 7 have dominated the headlines in the past couple of years.
- Small and mid-cap stocks have struggled amid a high-interest-rate environment, but signs of recovery emerged at the end of last year.
- With potential interest rate cuts on the horizon, some high-quality small-cap stocks could make a great addition to your portfolio.
- In 2024, invest like the big funds from the comfort of your home with our AI-powered ProPicks stock selection tool.
The market has been dominated by the magnificent 7, driving key indexes upward in 2023 and 2024. Meanwhile, smaller asset classes, such as small and mid-caps, have struggled due to the high interest-rate environment.
However, signs of recovery have emerged since the end of last year, though the true turning point will likely coincide with the first cuts, provided the economy remains strong.
Now, let's examine a couple of stocks that could benefit from the first cuts and could make a great addition to your portfolio at current levels.
h2 1. Stride/h2Stride (NYSE:LRN) operates in educational services, offering online curriculum for schools.
In its latest quarterly report, the company achieved record levels on its balance sheet, signaling positive prospects.
Currently, InvestingPro rates the company's overall health at 4 out of 5, with the estimated intrinsic value nearly 30 percent higher than its current value.
Source: InvestingPro
Earnings and revenue growth have also shown an upward trend, with valuations, however, suffering lately from the general decline throughout the industry.
Source: InvestingPro
h2 2. Confluent/h2Confluent Inc (NASDAQ:CFLT) is a 'cloud-based company that operates a streaming platform both in the U.S. and internationally.
The charts indicate that the latest quarterly report gave a very positive boost. The image below shows an interesting gap up supported by good volumes.
Get The App
Taking a more cautious stance, there may be opportunities to buy with stops at appropriate levels.
The stock surpassed analyst estimates, sparking a rally. InvestingPro reports that the stock's price target is now being revised upwards for the next quarter.
Source: InvestingPro
Handling small/mid caps requires a proper strategy and a thorough assessment of all associated risks.
Looking ahead to a potentially more favorable scenario in the second half of 2024, there could be interesting prospects.
h3 ***/h3Take your investing game to the next level in 2024 with ProPicks/h2
Institutions and billionaire investors worldwide are already well ahead of the game when it comes to AI-powered investing, extensively using, customizing, and developing it to bulk up their returns and minimize losses.
Now, InvestingPro users can do just the same from the comfort of their own homes with our new flagship AI-powered stock-picking tool: ProPicks.
With our six strategies, including the flagship "Tech Titans," which outperformed the market by a lofty 1,183% over the last decade, investors have the best selection of stocks in the market at the tip of their fingers every month.
Don't forget your free gift! Use coupon code pro2it2024 at checkout to claim an extra 10% off on the Pro yearly and 2-year plans.
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.