Unveiling 3 Hidden Stock Market Diamonds Poised for a Sparkling July

Discovering those obscure yet potentially flourishing stocks could be the golden ticket to igniting your investment portfolio.

In a timeline predominantly shaped by a select few tech magnates, it’s paramount to diversify your investment horizons with high-flying potential entities. These covert stocks, although camouflaged from the limelight, are set to soar as the broader market gears up for an anticipated rally later in the year. Further encouraging early bird investors, these undervalued gems, with their propitious underlying operations, have the potential to substantially escalate in value alongside the surging popularity of their businesses. Steeped in relatively modest investment requirements, these hidden treasures could be the risk-mitigating booster shot your portfolio needs, offering a tantalizing upside.

With that in judicious contemplation, scan these three discreet yet promising stocks that are on the brink of a breakthrough. These stocks boast robust foundational businesses, setting them on a trajectory for long-term prosperity. Furthermore, you can snag these investments for under $20, akin to catching a blockbuster movie on discount day.

Revving Up: Cemex (CX)

Where pessimism looms over Mexico post the recent presidential election, Cemex (NYSE:CX) cuts through the shadows with its stellar operational performances. Despite its substantial earnings stemming from Mexico, the stalwart has defied odds with burgeoning demand and robust margins. Under the lens of trailing twelve-month (TTM) evaluation, Cemex glows with EBITDA, net income, and levered free-cash-flow margins standing at 17.7%, 1.2%, and 10.7%, respectively.

Noteworthy management acumen has empowered Cemex to ride the reshoring and nearshoring wave, breathing new vitality into Mexico’s industrial nerve. Even amidst the slackening U.S. growth, Cemex stands resolute in leveraging large-scale infrastructure endeavors to sustain its vigour.

Therefore, with a nimble management adapting to dynamic market currents, expect CX stock to inch from strength to strength. The current price point presents an enticing buying opportunity, with a dip of over 18% year-to-date (YTD). Furthermore, market analysts vouch for the stock with a moderate buy rating, projecting a 43% upswing from prevailing levels.

The Rising Star: SoFi (SOFI)

SoFi (NASDAQ:SOFI) emerges as a formidable contender within the fintech expanse, despite recent hurdles tarnishing its stock price. Incidences like student loan forgiveness policy backlashes and escalating delinquency rates led to a 21% dip in its value last year. Yet, its organic operations gleam, showcasing robust user expansion and a notable spike in profitability.

The recent quarters have witnessed SoFi achieving profitability, a significant milestone affirming its operational efficacy. Additionally, the technological facet of its business harmonizes with its lending arm, witnessing a substantial 54% sales surge in Q1 this year. These results underline SoFi’s potential for capitalization based on its diversified business model.

With SOFI shares trading at a mere $7.47, substantially below its pinnacle of $25.78, its innovative verve and long-term growth runway hint at an impending return to the double-digit realm.

The Ascendant: Grab (GRAB)

The tech star from Singapore, Grab (NASDAQ:GRAB), swiftly metamorphoses into a pivotal player in the burgeoning internet sphere of Southeast Asia. Embracing the super app persona, it unfurls an extensive array of e-services spanning transport to digital finance across key markets like Indonesia, Malaysia, and Vietnam. Its standout lies in pioneering presence across the globe’s swiftest prospering zones, painting a promising picture for long-term success.

In fiscal terms, Grab sustains admiration, surpassing top-line projections for nine consecutive quarters and making considerable headway in fortifying its bottom line. Q1 reports speak of an EPS of negative three cents, a marked uplift compelling its management to elevate EBITDA guidance by $70 million for the forthcoming quarter. Efficient cost management and operational streamlining piloted the shedding of $134 million in losses during Q1.

Future projections hint at a reduction in losses to three cents per share this year, envisaging a breakthrough profit of four cents in 2025. Coupled with the anticipated interest rate cuts, the forecast unveils a recipe for Grab’s monumental long-term prosperity.

On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities discussed. The viewpoint expressed in this article belongs to the writer, adhering to the InvestorPlace.com Publishing Guidelines.

As of the publishing date, the overseeing editor did not have any positions (either directly or indirectly) in the highlighted securities.