3 lesser-known companies to know about

The Department of Justice (DOJ) has revealed yet another antitrust lawsuit against the consumer and technology giant The Apple company. NASDAQ:AAPL. This time, the accusation centers on the belief that Apple has cornered – or monopolized – the smartphone market by forcibly making other competing products worse.

Apple says the allegations, and their logic, are wrong. After all, it’s not Apple’s fault that its competitors haven’t been able to keep up with their technology in terms of design and capabilities. However, even if Apple emerges victorious from this fight, the timing of a deal is still a matter of speculation.

Knowing this, you might consider adding to your list of more “low-keyed” tech stocks, which are far from the government’s radar but well within Wall Street’s magnifying glass. Names like Upstart Holdings Inc. NASDAQ: UPST, Snap Inc. NYSE: SNAPand even Salesforce Inc. New York Stock Exchange: CRM could become an investor favorite, as the apple doesn’t fall far from the apple tree when it comes to price action.

Upstart can jumpstart your portfolio

No pun intended, but it’s true. After falling just 36% of its 52-week high, Wall Street analysts have new reason to believe Upstart stock could return to its former glory.

Some analysts expect this company’s earnings per share (EPS) to grow 165% over the next 12 months, but the story doesn’t end with the numbers.

Now that the Federal Reserve (the Fed) is looking to cut interest rates this year, creating a floor on which the economic cycle can land and push higher again, Upstart’s customers (ranging from personal loan borrowers to mortgage lenders) will likely see a new reason to turn to Upstart for solutions.

Lower interest rates may trigger a new wave of financing activity in all of these areas. Upstart is in the eye of a storm for making these new loans and selling them to customers. In fact, some stocks exposed to this trend have already begun a rally.

Just look at the 62% performance in Carvana Co. NYSE:CVNA so far this year or the way Warren Buffett has been buying stocks D.R. Horton Inc. NYSE: DHI before these rate cuts. Betting on consumer financing of auto loans and a new housing boom based on cheaper mortgage financing, these two stocks offer a glimpse into the future.

This is why markets are willing to pay a forward P/E of 113x, compared to an average industry valuation of 14.6x forward P/E. There must be a good reason for the markets to overpay for this stock; now you know one.

Others are realizing the upside potential of Upstart stock; institutions such as Vanguard Group increased their position by 2.3%, representing a transaction of approximately $6.5 million.

Likewise, American Group International increased its exposure to Upstart shares by 1.2% in the latest quarter. Given that Upstart is not among the big names in technology, the recent adoption by these institutions could imply a certain feeling of greater security.

The rebirth of Snapchat

Today, the government has also extended its reach to other technological areas, this time around social media. TikTok, the popular short-form content platform, could be banned from the US market within five months. In a recent bill, US officials requested that TikTok’s parent company, Bytedance, spin off the platform to avoid further national security concerns.

The gap to be filled by TikTok’s user base, a demographic that tends to stick around Instagram, owned by Meta Platform Inc. NASDAQ: METAit could also have a contagion effect that could be picked up by Snap stock.

Knowing this, analysts at Wells Fargo & Co. New York Stock Exchange: WFC they raised their price targets on the stock to $16 starting in February. These valuations would require a 40% rally from the stock’s current value.

But the responsibility doesn’t stop there; these same analysts have forecast EPS growth of 137% this year, pushing the stock’s potential even higher. All of this comes as the stock trades at 64% of its 52-week high, leaving a gap wide enough to be filled with a decent rally.

Salesforce is tied to the business cycle

Being part of the business services industry has its advantages. Salesforce stock could be set to take off once lower interest rates spur new business activity.

Showing underlying signs, the ISM Services PMI could see a turnaround in the coming months, after a new economic cycle soaks up the water.

It should come as no surprise that Wall Street institutions like Fisher Asset Management – ​​known for their macro value strategies – bought $203 million worth of Salesforce shares last quarter, increasing their position by 5.2% , according to property reports.

Analysts believe Salesforce stock could see EPS growth of up to 15% over the next 12 months, a significant prediction considering the company is a $289 billion behemoth in its industry.

This comes at a price-to-book (P/B) valuation of 4.9x, giving Salesforce a 62% discount to today’s industry average P/B valuation of 12.9x. Analysts at Canaccor Genuity Group Inc. EXT: FC see the stock rise to $350 per share, almost 14% higher than what it traded today.

Before you consider Canaccord Genuity Group, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Canaccord Genuity Group wasn’t on the list.

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View the five stocks here