business

3 little-known stocks destined to become household names


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The latest market downturn has created several opportunities for investors to acquire little-known high-quality stocks. This includes blue chip stocks which have lost value since the start of the year. Granted, companies that aren’t in the spotlight tend to be riskier than their larger counterparts. Nonetheless, the value of little-known stocks cannot be ignored as the market eventually rallies.

Additionally, a key issue with well-known stocks is that major institutional investors are actively buying. Institutional investors also have the cash to keep loading battered stocks and reap the rewards later. Therefore, investing in lesser-known stocks can be very beneficial, given that they are unlikely to be on an institutional investor’s radar.

The low profiles of lesser-known stocks can be a major advantage in current market conditions. Nevertheless, it is important to do your due diligence before betting on such stocks. You wouldn’t want to catch a falling knife, which is probably what many investors may be doing now. As you explore your options, keep these little-known stocks in mind.

PFCs First Financial $26.86
PRTS CarParts.com $5.38
PUBM PubMatic $16.47

First Financial (PFCs)

Stock market digital chart graph on LED display concept.  A large display of daily stock price and quote.

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First Financial (NASDAQ:PFCslisten)) is an Ohio-based regional bank that operates nearly 12 loan offices and 74 branches across the United States. the future.

For regional banks such as PFC, having higher loan balances on the books is imperative. Loans and deposits grew at a healthy pace in the second quarter, reaching $494.1 million, up 35.7% from the second quarter of last year. Additionally, commercial mortgages rebounded incredibly well, while residential loans are also up 37.8%. Overall, despite the rate shock, credit demand remained remarkable.

With more assets to lend to consumers, the bank will be able to lend at much higher rates in the second half of 2023. Additionally, investing in PFC stocks comes with a handsome dividend yield of over 4.42% , which is hard to drop at this point.

CarParts.com (PRTS)

Basically, there's not much to like about Overstock stock.

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CarParts.com (NASDAQ:PRTS) is an e-commerce platform specializing in aftermarket auto parts and accessories in the United States and the Philippines. Its commitment to innovation, financial discipline and customer service has enabled it to post incredible numbers in recent quarters. Understandably, its business is under strain due to current inflationary pressures, but overall it has done well to navigate the headwinds.

PRTS reported record second-quarter revenue of $176.2 million, up 12% from a year earlier. He represented the 10e consecutive quarter of double-digit revenue expansion, with adjusted EBITDA of $8.3 million. Company management remains committed to fine-tuning operations and adopting a more customer-focused business approach.

As a result, the company’s long-term outlook remains favorable. Its ability to grow in these challenging times is encouraging and speaks to its formidable long-term positioning. Additionally, its shares are trading at just 0.47 times 12-month sales, more than 25% below its 5-year average.

PubMatic (PUBM)

3 little-known stocks destined to become household names

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PubMatic (NASDAQ:PUBM) is a successful sell-side advertising company that goes unnoticed, despite its strong performance. Over the years, it has built an impeccable financial profile, delivering solid returns to investors. In the second quarter, it increased sales 27% from the year-ago period to $63 million, well ahead of analysts’ estimates of $60.7 million.

Additionally, the numbers are well ahead of management’s forecast of $60-62 million, a good start given the challenging macro conditions. Although it was forced to lower its outlook for the full year, it still expects to beat analyst estimates by a fair margin.

With publishers increasing PubMatic’s revenue and attracting more spend from buyers, this enables the platform to improve utilization of incoming masses of data. The platform’s efficiency and access to audiences and inventory from major publishers strengthen its long-term case.

As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Muslim Farooque is a passionate investor and an optimist at heart. A long-time gamer and tech enthusiast, he has a particular affinity for analyzing tech stocks. Muslim holds a Bachelor of Science in Applied Accounting from Oxford Brookes University.

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