Many investors may be familiar with the well-known Magnificent Seven stocks such as Microsoft, Apple, and Nvidia, but there are hidden gems waiting to be discovered in the stock market.
Unearthing E.l.f. Beauty (ELF)
E.l.f. Beauty (NYSE:ELF) recently celebrated its 21st consecutive quarter of sales growth and positioned itself as a standout in the beauty industry, achieving over $1 billion in net sales in fiscal 2024.
Despite offering modest guidance for fiscal 2025, e.l.f. Beauty has a track record of surpassing expectations, with a remarkable 77% year-over-year net sales growth in the previous fiscal year.
With a 29% year-to-date increase in its stock price and a market cap of $10.2 billion, e.l.f. Beauty is poised for potential inclusion in the S&P 500 in the coming years.
Discovering Sezzle (SEZL)
Sezzle (NASDAQ:SEZL), a “buy now pay later” platform, has flown under the radar with a tripled stock value year-to-date and impressive financial performance.
Reporting a 35.5% year-over-year revenue increase in Q1 2024 and a significant rise in subscribers and transactions, Sezzle’s solid fundamentals have supported its sustainable rally.
While analysts have been slow to recognize Sezzle’s potential, the fact that over half of the company’s shares are owned by insiders indicates a strong belief in its future.
Exploring SoFi (SOFI)
SoFi (NASDAQ:SOFI), another promising fintech player, has had a tumultuous stock performance despite delivering impressive financial results.
With a 37% year-over-year revenue growth in the first quarter of 2024 and a turnaround from GAAP loss to profitability, SoFi’s diverse financial product offerings position it for future success.
By leveraging its digital banking advantages and strategic growth plan, SoFi aims to see continued increases in earnings and revenue, signaling positive stock performance in the future.
On the day of publication, Marc Guberti disclosed his long positions in ELF, SEZL, and SOFI. The opinions presented here solely reflect the views of the writer.