3 Under-the-Radar Growth Stocks to Buy Now
We've put together a list of 3 under-the-radar growth stocks to buy now so that you can gain some valuable insight about the names that could become huge winners in the coming months and years.
This story originally appeared on MarketBeat
While it's always good to stay up to date on the high-flying stocks that get a lot of recognition in the financial media and among investors, taking some time to discover new names should also be a priority. That way, you allow yourself the opportunity to add exposure to growth stocks that could become huge winners before they gain widespread exposure. Some of the best ways to judge whether or not a lesser-known company could be poised for big things is to look for increasing volume that might signify institutional buying, strong earnings growth, and unique business models.
There are quite a few lesser-known growth stocks that stand out at this time. We've put together a list of 3 under-the-radar growth stocks to buy now so that you can gain some valuable insight about the names that could become huge winners in the coming months and years.
First on our list is PubMatic, a company that has created a unique software platform with the potential to change the way that publishers handle internet advertising. We know how important digital advertising is in the modern age, and with more people going online to shop, consume content, and connect with people around the world, a company like Pubmatic has a lot of room to grow. PubMatic has developed a specialized cloud infrastructure platform that leverages design, machine learning, and data processing capabilities to help publishers monetize their content.
What's great about PubMatic's business model is that it can help to boost revenue for both internet content creators and advertisers. Its omnichannel platform supports tons of different advertisement formats and devices, including mobile apps, mobile Web, desktop, display, video, over-the-top/connected television, and rich media. PubMatic completed its IPO in December of 2020 and recently reported that its 2020 revenue came in at $148.7 million, up 31% year-over-year.
SelectQuote Inc (NYSE:SLQT)
Next, we have SelectQuote Inc, another intriguing growth stock that could become a household name soon. SelectQuote offers a direct-to-consumer distribution platform the helps customers shop for senior health, life, and auto and home insurance policies from various insurance carriers. The company's platform features proprietary technology that essentially matches insurance buyers with carriers to help them get the best possible prices on their policies.
SelectQuote earns commissions from the insurance carriers every time a shopper buys a policy using its platform. The company estimates that there is a $30 billion market for Senior insurance, and since this company offers things like convenience, transparency, and diverse product offerings, there's reason to believe that it will continue to take advantage of the massive market opportunity. In Q2, the company reported revenue of $358.3 million, up 103% year-over-year, and saw its Adjusted EBIDTA figure increase 88% year-over-year to reach $129.5 million. SelectQuote went public back in May 2020 and recently broke its IPO high price, which is another reason to keep an eye on this one for exposure to this under-the-radar growth stock.
ZIM Integrated Shipping Services Ltd (NYSE:ZIM)
Last on our list of under-the-radar growth stocks to buy now is ZIM Integrated Shipping Services Ltd, an Israel-based company that offers cargo transportation services on all major global trade routes. The company also offers multi-model, cargo handling, tariff management, schedule information, and other related services. Shipping companies have been strong during the pandemic as online ordering drove demand for deliveries all over the world. That makes ZIM more than worth a look given it's a newer entrant in the shipping industry.
ZIM went public back in January and is up over 115% since its debut. It's a shipping company that is classified as an "asset-light" transporter, which means it only owns one ship and charters other vessels. The company specializes in niche routes and has a reputation as a top industry performer with high schedule reliability and service quality. ZIM reported a record full-year net income of $524 million in 2020 and saw its revenues reach $1.36 billion in Q4, a year-over-year increase of 64%. With global trade flourishing and shipping demand expected to remain strong throughout the year, this is a growth stock that is well worth a look at this time.