3 Sleeper Stocks That Could Soar
Sleeper stocks are investments that are not well-known or widely followed by analysts. They may be small companies with good prospects. Ones that have not yet caught the attention of Wall Street. Or they may be larger companies whose stock prices have been depressed. Which could be due to bad news. But they still have good fundamentals.
Sleeper stocks can offer good opportunities for investors. Because they may be undervalued and have good potential for price appreciation. However, they can also be riskier than more followed stocks. And that’s usually because there is less information available about them.
A Few Sleeper Stock Investment Tips
- Look for small companies that are growing fast. These companies may not yet be well-known. But they may have strong fundamentals that make them good sleeper stocks.
- Look for companies that are in out-of-favor industries. By “out-of-favor industries,” I mean, those that are not directly in the spotlight right now. Because companies in this area are usually overlooked by investors. But they may have great prospects for the future.
- Look for strong fundamentals that have been recently hit by bad news. These stocks may be undervalued and offer good opportunities for price appreciation.
- Be sure to do your own research before investing in any sleeper stock. They can be riskier than more widely followed stocks. So, it’s important to understand the risks before investing.
With the stock market reaching new highs, many investors are looking for stocks to buy. In particular, ones that will continue to rise. And there are many well-known stocks that have been driving the market higher. But, there are also sleeper stocks that may be flying under the radar, which could offer large gains.
In this article, I’ll introduce three sleeper stocks that have good potential. Industry and market are two big driving factors in a business’ success. But, financials and leadership are also important to consider. So, we’ll be taking a look at some of those below.
Best Sleeper Stocks to Invest In
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- eBay Inc. (Nasdaq: EBAY)
- GoPro Inc. (Nasdaq: GPRO)
Sleeper Stocks To Buy
No. 3 Innovative Industrial Properties Inc.
Market Cap: $5 billion
Dividend Yield: 3.8%
Innovative is a sleeper stock that could soar in the coming years. The company is a real estate investment trust (REIT) that focuses on the cannabis industry.
IIPR has been one of the best performers in the REIT sector, with its stock rising over 43% in 2021. The company has a strong growth prospect. And, a portfolio of medical-use cannabis properties that is expanding fast.
IIPR’s revenue and earnings have been growing rapidly. And the company is well-positioned to continue this trend in the future. The company’s stock is down, making it a great opportunity for investors to jump in.
Investors tend to think of large companies as being safer and more stable than small companies. And they also often have better access to capital, which can help them weather tough times.
That’s why a high market cap is often seen as a good thing by investors. It means this sleeper stock is big and established. And it has the resources to keep growing.
Cannabis and Real Estate
The cannabis industry has been taking off in the past few years. This is in large part due to the changing attitude towards cannabis. And many states are now legalizing it for medicinal or recreational use. Real estate has always been a great wealth creator, too. And recently, it’s no secret that real estate has also been seeing historic growth.
Now, these two industries are coming together to create some serious sleeper stocks. Innovative Industrial is not the only one who’s thought of this. But, it’s in a small market that’s making serious cash.
No. 2 eBay Inc.
Market Cap: $33 billion
eBay Inc. is an American multinational e-commerce corporation based in San Jose, California. They ease sales through its website. eBay was founded by Pierre Omidyar in 1995. And it became a notable success story of the dot-com bubble. Today, eBay is a multi-billion dollar company with operations in about 180 countries.
While eBay is certainly a success story, it is not without its challenges. The company has been facing increased competition from Amazon and other e-commerce sites. And it has been working to revamp its image and offerings to stay relevant.
Despite these challenges, eBay remains a powerhouse in the e-commerce world. And it could be a sleeper stock that soars in the coming years.
Three Reasons Why eBay Remains a Powerhouse
No. 1 Strong Brand Recognition
eBay has a strong brand that is recognized around the world. This brand recognition gives the company a competitive advantage. And it has helped it remain one of the top e-commerce sites, despite increased competition.
No. 2 Diverse Product Offerings
This sleeper stock offers a wide range of products. From electronics to fashion to collectibles. This diversity gives the company a competitive advantage. And it ensures that there’s something for everyone on the site.
No. 3 Strategic Partnerships
eBay has forged strategic partnerships with some of the biggest names in the market. including PayPal and Alibaba. These partnerships give them access to a larger customer base. Plus, they provide a competitive advantage.
No. 1 GoPro Inc.
Market Cap: $1 billion
Dividend: none right now
GoPro makes action cameras and drones. These are popular with extreme athletes and adventure seekers. Going public in 2014, its stock price has since soared. Despite this, GoPro is still considered a sleeper stock. This is, of course, because of the big market downturn in 2020.
As the world is back to normal, many industries are starting to rebound. Airlines, hotels, and restaurants are a few of the sectors that come to mind.
But there are other opportunities in different corners of the market. For example, many people are rediscovering the joys of being outdoors. This is good news for companies like GoPro.
What’s also interesting is that people are seeing bigger incomes. So, the recreation industry is growing, too. Because people can spend more money on those sorts of items.
Final Thoughts on Sleeper Stocks
Overall, these are three interesting sleeper stocks. And, ones that could soar in the coming years. All three companies are in growing areas of the economy. And, all three have strong competitive advantages. So, if you’re looking for sleeper stocks to buy, these could be three great options to consider.