3 Wall Street secrets to invest in now

Wall Street’s best-kept secrets are hard to find. Because even though they are easy, they are not secrets. Today’s top stocks tend to be large-cap tech stocks with rapid (and perhaps unsustainable) growth that frustrates latecomers when their momentum slows.

That’s why finding Wall Street’s best-kept secrets requires meeting two key criteria. It’s about identifying emerging market opportunities and finding small- and mid-cap stocks with good growth statistics that target new sectors. These three stocks are showing strong growth while their respective industries (B2B e-commerce, instant alcohol, and work-from-home furniture) are just beginning a long and fruitful upward trajectory.

Giga Cloud Technology (GCT)

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We know that direct-to-global buyer e-commerce will continue to grow in popularity. Amazon (NASDAQ:AMZN) and alibaba (New York Stock Exchange:Baba). Giga cloud technology (NASDAQ:GCT) is similar, but one of Wall Street’s biggest secrets is that e-commerce companies are targeting the huge B2B market to create a one-stop shop for businesses to source products and manage everything that comes with it. I am creating it.

Managing products and inventory, not to mention sourcing and payment processing, is a challenge for midsize businesses. GigaCloud offers a complete suite of expanded B2B e-commerce needs, including an active vendor marketplace, shipping and freight management, warehousing, AI-powered fulfillment, and importantly, cross-border payments. safely and reliably.

On the surface, the company has a surprisingly low price-to-earnings ratio of just 19 times, compared to the average price-to-earnings ratio of 36 times for the tech industry as a whole. The difference becomes even more pronounced when you look at GigaCloud’s revenue growth. The company has doubled its earnings per share over the past four quarters, and importantly its free cash flow per share remains strong despite the company’s sales trailing just 0.68 times. Masu.

Vita Coco Company (COCO)

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Things like beverage stocks monster (NASDAQ:MNST) and Celsius (NASDAQ:cell) is still all the rage, but with one competitor—Vita Coco Company (NASDAQ:Here)—still one of Wall Street’s best-kept secrets. While the energy drink market, and even the standard sports drink space, faces intense competition, Vita Coco stands alone among coconut water vendors. The company currently owns more than half of the total addressable market.

Even better, through strategic partnerships with British liquor brands diageo company (New York Stock Exchange:D.E.O.), Vita Coco is expanding into the ready-to-drink alcoholic beverage market with a variety of spiked coconut water options. Coconut water mixed with Captain Morgan isn’t my cup of tea, but this emerging market is growing explosively and is expected to grow at a CAGR of 7.5% through 2029, and Vita Coco is one of the top tiers of that market. It will probably make up the majority.

On the financial front, Vita Coco surprised analysts with a 4% return at year-end, driven by a nearly 500% increase in annual net income along with a 9.4% profit margin. We all know how Monster became one of the best-performing stocks of the century, and this Wall Street’s best-kept secret may be on track to accomplish the same thing.

Steel Case Company (SCS)

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While the work-from-home trend has weighed heavily on some sectors of Wall Street (such as commercial real estate), high-end office furniture manufacturers remain Wall Street’s best-kept secret. Steel Case Co., Ltd. (New York Stock Exchange:SCS) are thriving in this new environment. The company’s recent dividend increases confirm this success, offering investors his 2.88% yield.

Steelcase quickly bounced back from the post-pandemic supply chain shock and curbs on corporate furniture spending. The company’s latest quarterly financial report revealed net income of $30.8 million, a significant increase from the previous year’s numbers. Meanwhile, the company has maintained steady sales over the past five quarters, hovering around $800 million, showing that Steelcase is increasing profit margins without compromising on quality.

The company is actively adjusting its strategy to suit the work-from-home era, with the goal of increasing annual sales by 5% to 7% and achieving a free cash flow margin of 5% on sales over the next five years. There is. Additionally, Steelcase has taken decisive steps to reduce debt, strengthen liquidity and minimize interest expense amid rising interest rates. This strategic financial management positions Steelcase as one of Wall Street’s best-kept secrets today.

On the date of publication, Jeremy Flint had no positions in the securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.