Under-the-radar stocks receive little attention from analysts, investors, or the media. However, these stocks could be undiscovered gems that offer competitive advantages, undervalued prices, and higher returns than the market average or peers, as they are often in rapidly growing industries and have the potential to grow faster than the overall stock market. For example, if you invest in an under-the-radar stock in the artificial intelligence industry, you could see significant gains if the industry continues rapidly growing.
Under-the-radar stocks also offer unique opportunities to capitalize on the latest emerging trends, niche markets, or disruptive innovations that the mainstream does not know or understand.
Finally, these stocks may have loyal customers, dedicated management, or innovative products that give them an edge over their competitors and create long-term value.
Many underfollowed technology stocks have high growth potential in 2023 and beyond. However, finding them requires careful research and analysis. Here are three possible candidates with a market capitalization above $1 billion that are not widely known or followed by investors:
1. Procore Technologies
Procore Technologies (PCOR 5.47%) is a cloud-based software company that provides solutions for the construction industry. The company benefits from the construction industry being among the last to digitize. The construction industry is very traditional, and many companies still use manual project management processes, leaving much room for improvement.
NYSE: PCOR
Key Data Points
Its cloud-based construction management software offers many advantages over manual methods. The software helps customers manage, coordinate, and optimize their projects, workflows, and data across various stakeholders, such as engineers, architects, contractors, owners, and suppliers.
Procore has rapidly grown its revenue as it benefits from the increasing demand for digital transformation and automation solutions in the construction sector. The company increased its 2022 annual revenue by 40% over the previous year. It has a market cap of $9.7 billion and its stock price has increased by 46% year to date.
2. Zscaler
Zscaler (ZS 3.42%) is a cloud-based security company that provides solutions for protecting users, devices, applications, and data from cyber threats. Enterprises are increasingly adopting zero-trust security models, which is benefiting Zscaler. Zero-trust is a security model that assumes no user or device can be trusted by default, meaning that all access to applications and data must be verified, even if the user is inside the corporate network. This cloud-based zero-trust security platform helps companies control access, monitor threats, and prevent data loss and breaches while improving network performance and visibility.
NASDAQ: ZS
Key Data Points
Zscaler has been growing its revenue rapidly as it benefits from the increasing adoption of cloud-based solutions to support the growth of remote work and work-at-home activities. The company increased its fiscal fourth quarter 2022 annual revenue by 62% over the previous fiscal year. It has a market cap of $21.5 billion and its stock price is up 31% in 2023.
3. Upwork
Upwork (UPWK +2.11%) is an online platform that connects freelancers and independent professionals with employers who need their skills and services. Upwork offers various features and tools that help freelancers find projects, communicate with employers, manage payments, and build their reputation. Upwork also enables employers to find, hire, and collaborate with freelancers across various categories, such as web development, graphic design, writing, accounting, customer service, and more.
NASDAQ: UPWK
Key Data Points
Many expect the freelance job market to continue growing well into the future due to several factors, such as the increasing number of people looking for temporary or contract work and the growing availability of remote work. Upwork provides a way for investors to tap into the growth of this market.
Gartner estimated the company's market at $1.3 trillion as of 2021. Upwork has grown its revenue rapidly into that massive market. Despite a challenging economic environment, the company's annual revenue for 2022 increased by around 23% compared to the previous year. It has a market cap of $1.3 billion and its stock price is down 2% in 2023.
Take a chance on these unsung stocks
Procore Technologies, Zscaler, and Upwork are outstanding under-the-radar stocks because they are leaders in their respective markets, with tremendous growth potential and demand. Each has loyal and valuable customer bases, substantial competitive advantages, and innovation capabilities. These stocks are not widely known or followed by investors, which means they could potentially have more upside as each gains more recognition and visibility.
If you're looking for stocks that will give you a good shot at attaining long-term gains and are willing to take on some risks, consider investigating these three options to see if they belong in your portfolio.
