Stocks to buy

3 Underrated ‘Strong Buy’ Stocks You’ve Never Heard Of

Strong buy stocks are companies that offer investors great earnings potential. They are companies that have seen consistent growth for an extended period of time and are continuing to adapt and adjust to a changing environment. I expect future growth potential due to several factors, including raised financial guidance, improved earnings, important new releases and other business developments.

The stocks listed below have low trading volume. But they also represent companies that have seen substantial growth in share price as well as positive recent earnings results. Investors should consider these strong companies that receive very little attention.

JAKKS Pacific (JAKK)

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JAKKS Pacific (NASDAQ:JAKK) designs, develops and sells toys and kids’ furniture, such as action figures, toy vehicles, activity tables, kiddie pools, sports sets, toy basketball hoops and board games. JAKKS sells its products from a wide range of distributors, including retail, grocery, toy, dollar and wholesale stores.

Within the last year, the company has seen its share price grow nearly 50%, due partly to an earnings beat for the third quarter of 2023. The report stated that total revenue dropped by 4% and net income increased by 57% compared to the previous year. JAKKS Pacific also announced that it had zero debt in the third quarter compared to $67 million in the fourth quarter of 2022.

Another reason the share price jumped was due to the announcement that JAKKS would be entering a long-term deal with Authentic Brands, an entertainment and apparel company, to produce specialty products under brands such as Forever 21, Quicksilver, Element and Sports Illustrated.

JAKKS Pacific is a stand-out toy manufacturer because it has had massive growth in its share price following positive press releases and recent earnings that exceeded investors’ expectations. It is a growing company that deserves more attention from retail investors.

M-Tron Industries (MPTI)

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M-tron Industries (NYSE:MPTI) designs, manufactures and sells electronic components, including frequency and spectrum products, including millimeter filters, integrated oscillators and power amplifiers. The company supplies these products for the defense and aerospace industry. 

On Nov. 9, M-tron reported earnings for the third quarter of 2023. It stated that total revenue grew by 29% and net income rose more than tripled. These positive results are due to increased shipments of defense products and growth in total business volume.

M-tron Industries started trading publicly at the end of 2022. Over the past year, the company has seen its share price increase more than quadruple.

With its growing product mix and customer base, M-tron is poised to continue this path and excite investors based on its upside potential going forward.

Manitex International (MNTX)

Source: Shutterstock

Manitex International (NYSE:MNTX) is a construction equipment company that produces a wide range of boom trucks and cranes for use in building roads, bridges, energy exploration and infrastructure development.

Over the past year, the stock price has nearly doubled. The company recently reported earnings for the third quarter of 2023. Results showed that revenue grew by 10% compared to the year before. In Q3 2022, the company reported a net loss of $3.1 million. For the third quarter of 2023, it stated a net income of $1.9 million.

Manitex International has seen drastic growth over the past year due to a strong demand for construction products. It also raised its full-year guidance by the end of 2023. Furthermore, investors looking for exposure to industrials and solid growth potential should be interested in this strong buy stock.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.

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