2 Under-the-Radar Stocks With Market-Beating Potential

Group 1: Visa - Visa is the 13th-largest American company with a market cap exceeding $600 billion, yet it receives little attention compared to other high-profile stocks [2] - The company has achieved a 10-year compound annual growth rate (CAGR) of 18.2%, outperforming the S&P 500's CAGR of 12.4% [3] - Visa's business model is based on charging small usage fees for access to its extensive payment network, which supports over 4 billion Visa-branded cards and trillions of dollars in net payment volumes each quarter [4] - Over the past decade, Visa's quarterly revenue has grown by an average of 12.8% per quarter, with annual revenue increasing from $13.2 billion to $36.8 billion [4] - Annual diluted earnings per share (EPS) have increased from $2 in 2017 to $9.92 today, indicating strong profit growth [5] - The shift from cash to card payments is expected to continue, further enhancing Visa's revenue and profitability [5][6] Group 2: AT&T - AT&T has undergone significant changes, shedding unprofitable ventures and refocusing on wireless and fiber connectivity [7] - The company's net debt peaked at $180 billion in 2018 but has been reduced to $122 billion, a decrease of over 32% [8] - Since the beginning of 2023, AT&T stock has generated a total return of 69%, outperforming the S&P 500's 53% return [9] - AT&T offers an annual dividend of $1.11, resulting in a dividend yield of 4.1%, appealing to income investors [9][10] - The company appears to be on a recovery path with a new strategy and a leaner balance sheet, making it a potential market-beating investment [10]