Explore why these underappreciated stocks might redefine your investment portfolio
In general, high-growth stocks and sleeper stocks under $15 are associated with valuation concerns. Let’s forget inflated giants and overhyped darlings. Today, the article reveals three hidden gems. The three sleeper stocks under $15 I’ll be pointing out today are audacious innovators and may erupt like financial volcanoes by 2029.
The first one, a fintech, is shaking up the industry with its revolutionary app, offering everything from student loan refinancing to investing. It capitalizes on consumers’ preference for ditching bank fees and gaining control of their finances.
The second one on the list capitalizes on addressing untreatable chronic kidney diseases. It is a biotech maverick changing the game and a beacon of hope to disrupt this massive market. The third one is a biopharma underdog. The company is tackling rare diseases to revolutionize treatments for common conditions, and its pipeline is bursting with potential.
Read more to learn about these 3 under-$15 stocks that offer the chance to be at the edge of potentially witnessing their meteoric rise by 2029.
Sleeper Stocks Under $15: SoFi (SOFI)
SoFi’s (NASDAQ:SOFI) diversification in the topline is a strategic move to mitigate risks and enhance performance stability. Notably, a significant milestone is the shift from relying on a single revenue stream to having Financial Services (segment) and the Tech Platform (segment) contribute 40% of Q4 2023 adjusted net revenue.
Also, the positive contribution profit from the Financial Services segment, especially achieving profitability in Q3 2023, highlights the success of this diversification strategy. This also suggests that SoFi is successfully monetizing its financial services offerings and reducing dependence on a single business line.
Additionally, the lending segment’s growth and the increased contribution from net interest income demonstrate SoFi’s capability to adapt to changing market dynamics and optimize its revenue mix. A shift from 48% to 72% of adjusted net revenue comes from net interest income in lending. This signifies a strategic focus on recurring and predictable cash revenue streams.
Furthermore, the impressive increase in net interest income of 43% year-over-year leads to this strategy. Net interest income offers a stable and reliable revenue source compared to non-interest income, which can be more volatile. This shift aligns with SoFi’s long-term goal of achieving a more balanced and sustainable revenue mix.
The ability to grow the lending segment while focusing on net interest income is a vital driver of SoFi’s financial performance. In this context, SoFi Bank’s reported net income of a 21% margin and a return on tangible equity of 15.9% in its first full year are vital marks.
Finally, the substantial growth in total deposits by $11.3 billion in 2023 to hit $18.6 billion indicates the bank’s capability to attract and retain customers’ funds. Over 90% of consumer deposits come from direct deposit members, indicating solid depth-value potential.
Ardelyx’s (NASDAQ:ARDX) strategic positioning of XPHOZAH is a vital growth fundamental. It is a first-in-class phosphate absorption inhibitor for patients intolerant to binder therapy, which sets Ardelyx apart in the hyperphosphatemia market. This uniqueness makes the drug a valuable addition to the limited treatment options available.
Additionally, surveyed nephrologists have a high intention to adopt XPHOZAH within the first six months of its availability. This signifies the anticipation of a positive response from the medical community. The favorable ratings for novel mechanisms, efficacy, tolerability, and dosing attributes further reinforce the potential lead of XPHOZAH in the market.
Furthermore, Ardelyx’s go-to-market approach centers on enabling nephrologists to integrate XPHOZAH into the treatment regimen for patients who have an inadequate response or are intolerant to binder therapy. This strategic focus aligns with the demand and the potential for XPHOZAH to become a preferred non-binder option.
Notably, the progress of IBSRELA is based on Ardelyx’s edgy approach to marketing. The company has disrupted conventional market dynamics by addressing the traditionally challenging IBS-C market with a novel mechanism product boasting a solid safety and efficacy profile. This strategic thinking and focus on patient benefits have allowed Ardelyx to carve out a unique role in the pharmaceutical landscape.
Looking forward, Ardelyx’s focus on disrupting markets with innovative products positions them for sustained value growth. There is quarter-over-quarter growth in Q3 2023 and a growing demand for IBSRELA. Finally, as the company continues to invest in research, development, and commercialization, the anticipation is for a robust financial outlook and related valuation potential.
Omeros’s (NASDAQ:OMER) strategic objectives drive its explosive growth. Firstly, the approval and market launch of narsoplimab for TA-TMA are vital milestones. There is a planned submission of the biologics license application (BLA) and an FDA decision mid-next year. This suggests Omeros’ focus on advancing therapies with substantial market potential.
Secondly, initiating Phase 3 clinical trials for the MASP-3 inhibitor OMS906 in paroxysmal nocturnal hemoglobinuria (PNH) and C3 glomerulopathy suggests the company’s focus on advancing its pipeline. There is a strategic decision to reallocate funds from the discontinued ARTEMIS-IGAN trial to accelerate the development of OMS906. This reflects Omeros’ agility in resource allocation, directing investments toward programs with promising prospects.
Moreover, the third objective involves moving OMS1029, a long-acting MASP-2 inhibitor, into Phase 2 clinical trials. This move focuses on a larger market indication by next summer. This expansion of Omeros’s portfolio reflects an edgy approach, exploring opportunities beyond the immediate challenges. Lastly, the company is maintaining a cash runway projected well into 2025. Furthermore, extending the cash runway into 2026 or beyond without dilution to shareholders is a strategic imperative. Hence, this aligns with Omeros’ focus on ensuring sustained operations and program advancements.
On the other hand, cost containment is a vital part of Omeros’ strategy. There is an evaluation of additional cost reduction measures while balancing the need to invest in near-term value-driving objectives. For instance, funds are redirected from the discontinued ARTEMIS-IGAN trial toward accelerating the development of OMS 906. Therefore, this implies that Omeros’s approach to program prioritization boosts the growth potential.
As of this writing, Yiannis Zourmpanos held a long position in SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.