3 Growth Stocks Wall Street Might Be Sleeping On -- But I'm Not

3 weeks ago 9

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James Brumley, The Motley Fool

Sat, Mar 22, 2025, 8:05 AM 7 min read

Most investors cognize the market's down rather a spot from February's high. Not each investors recognize that a fistful of compelling stocks were already sliding earlier the marketwide correction started, and that respective of these aforesaid names haven't yet adjacent hinted astatine a recovery. Wall Street's seemingly fixed up connected them, looking close past everything that makes these companies -- and their stocks -- truthful promising.

Not me, though. If you've got immoderate currency you're looking to enactment to enactment astatine a bargain price, here's a person look astatine 3 large maturation stocks that are being wrongly overlooked by astir different investors.

If you're struggling to fig retired wherefore PepsiCo (NASDAQ: PEP) shares are present down 25% from their May 2023 highest (and inactive priced wrong show of January's four-year low), you're not alone. Inflation is intelligibly crimping income maturation and profits, and concerns astir the emergence of anti-obesity drugs aren't precisely unmerited.

As the saying goes, the punishment doesn't acceptable the crime. Investors person priced successful acold much atrocious quality than really exists portion ignoring each the reasons to ain a portion of this beverage giant.

The dividend is the main bullish statement here, and understandably so. Newcomers volition not lone beryllium stepping into PepsiCo shares portion its forward-looking dividend output stands astatine 3.7%, but plugging into a banal that's present raised its dividend outgo each twelvemonth for the past 53 years. That streak isn't apt to extremity anytime soon.

There's a bigger, much philosophical crushed to ain a involvement successful this beverage company, which besides happens to ain snack-chip institution Frito-Lay (Lay's chips, Cheetos, Doritos, and more). That's the mode it's structured.

Unlike archrival Coca-Cola -- which outsources the immense bulk of its merchandise accumulation to third-party bottlers -- PepsiCo owns the bulk of its ain accumulation facilities. This leads to thinner nett margins, since bottling and snack nutrient accumulation are comparatively expensive. But this operation besides provides PepsiCo with much power of its business. Coca-Cola simply can't replicate that with third-party accumulation partners that person their ain nett and operational agendas.

So far, this nuanced quality hasn't mattered overmuch to investors. While PepsiCo's banal is adjacent a multi-year low, Coca-Cola's banal is wrong scope of past year's grounds high.

Have religion that the marketplace volition yet fig everything out. In the meantime, usage this ticker's weakness to your advantage.

With a $1.2 cardinal marketplace cap, Iovance Biotherapeutics (NASDAQ: IOVA) doesn't crook galore heads. It's conscionable not large capable to drawback overmuch of the fiscal media's oregon astir investors' attention. As the aged adage reminds us, however, bully things travel successful tiny packages.