10 Best Stocks You've Never Heard Of

The market is peppered with undiscovered gems boasting stable fundamentals and cheap valuations. Here are 10 of the best stocks flying under the radar.

big blue question mark among smaller question marks
(Image credit: Getty Images)

An important advantage retail investors have over institutional buyers when seeking out the best stocks to buy is the ability to find undiscovered gems, which are generally too small for fund managers to hold. Institutions invest billions of dollars at a time and are thus reluctant to buy thinly traded equities that become volatile when big blocks trade. The price of low-volume stocks spikes when institutions start purchasing blocks and plummets when blocks are sold. The end result is high transactional costs and eroding trading profits.   

Surprisingly there are many more companies uncovered by Wall Street analysts than there are ones researched by the pros. A Multex study from a few years ago found that only about one-third of the approximately 8,900 U.S. exchange-traded stocks are covered by analysts; two-thirds have no research coverage at all.


Data is as of Oct. 17. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. 

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Lisa Springer
Contributing Writer, Kiplinger.com

Lisa currently serves as an equity research analyst for Singular Research covering small-cap healthcare, medical device and broadcast media stocks.