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3 Underfollowed Stocks Wall Street Still Likes—And for Good Reason
Yahoo Finance· 2026-01-14 12:14
Core Insights - The market in 2025 rewarded investors who took risks on lesser-known stocks, with notable performers like Lumentum Holdings Inc. and AST SpaceMobile showing significant gains of over 400% and 244% respectively [2] - Companies like Movado Group Inc. are demonstrating strong fundamentals, with a year-over-year sales growth of 3.1% and a gross margin increase of 80 basis points to 54.3%, despite facing tariff pressures [3][4] - Movado's adjusted operating income increased by over 40% year-over-year, and the company ended the third quarter of 2025 with nearly $184 million in cash and no debt, indicating a solid financial position [3][4] Company Performance - Movado's brand strength and product momentum, including new collections and endorsements, are driving customer interest, despite an earnings per share miss of 12 cents [4] - Analysts predict a remarkable earnings increase of 152.4% for Movado in the coming year, driven by the holiday season and potential easing of Swiss watch tariffs [4] - Movado offers a compelling dividend yield of 6.16%, and analysts expect the stock to rise by more than 35% [4] Market Trends - Underfollowed companies like Movado, Nomad Foods, and Mosaic are expected to have double-digit upside potential in 2026, potentially outperforming more popular stocks [5] - The trend of investing in overlooked companies with growth potential is gaining traction, as evidenced by the performance of certain stocks in 2025 [5]