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Many quality stocks are overshadowed by high-flying, popular names like Amazon (AMZN), Meta Platforms (META), Nvidia (NVDA), Coca-Cola (KO), and others. Nonetheless, some of these under-the-radar stocks have high growth potential. Investors can potentially earn significant returns by identifying companies with strong fundamentals and growth potential that have yet to be recognized by the broader market. In this article, we'll look at two such stocks.

Global-E Online (GLBE) offers a comprehensive platform that enables cross-border e-commerce. The broader trend in e-commerce, in which consumers increasingly look beyond their national borders for a variety of products, has increased demand for the Global-E platform, resulting in double-digit revenue growth.

Meanwhile, Snowflake (SNOW) is establishing itself as a strong contender in data management and analytics, with the incorporation of artificial intelligence (AI) into its products.

While Snowflake and Global-E Online are down year-to-date, Wall Street expects these stocks to soar by as much as 25% to 53% over the next 12 months. Both companies are set to report earnings this month, and another strong quarter could drive their stock prices higher. Let's see if now is a good time to seize these under-appreciated growth opportunities.

Global-E Online Stock

Founded in 2013, Global-E Online (GLBE) provides end-to-end solutions for international e-commerce, simplifying the complex processes involved in selling products across borders.

Valued at $4.85 billion, GLBE stock is down 28.6% YTD, compared to the S&P 500 Index’s ($SPX) gain of 11.3%.

The company supports over 200 destinations worldwide, and accepts over 100 currencies. This level of customization is what has attracted customers to its platform, driving its financial performance.

Over the last five years, Global-E’s revenue has grown at a compounded annual growth rate of 54%.

In 2023, Global-E reported a 39.3% year-over-year increase in revenue to $569.9 million, driven by an uptick in the number of merchants using its platform and higher transaction volumes. Gross merchandising volume (GMV) in 2023 touched $3.5 billion, an increase of 45% over 2022.

Though the company reported a net loss of $1.24 per share in 2023, analysts expect Global-E to report a profit of $0.69 per share in 2024, and increase to $0.99 in 2025.

The company will report its first quarter of 2024 results on May 20. Management anticipates Q1 revenue growth of 18% to 23% and adjusted EBITDA to land between $16 million and $20 million.

For the full fiscal year 2024, management forecasts revenue growth of 28% to 35% to a range between $731 million and $771 million. Analysts' revenue estimates for the year fall within that same range, with 32% growth expected by 2025. Trading at six times forward sales, Global-E makes a compelling case for an undervalued growth opportunity for the long haul.

Following its robust Q4 results, Jefferies analyst Samad Samana reiterated his “buy” rating for the stock with a target price of $45. Samana believes the company will achieve organic GMV growth in the “mid-to-high 30s percentage” in 2024, which is a key indicator of its financial health. The analyst also believes Global-E profits will increase along with sales.

Overall, Wall Street is bullish, rating GLBE stock a “strong buy.” Of the 12 analysts who cover the stock, eight rate it as a "strong buy," two as a "moderate buy," and two as a "hold." The average target price of $43.42 for GLBE indicates a 53% premium over current levels. Furthermore, the stock's Street-high estimate of $50 implies a potential gain of 76.2% over the next 12 months.

Snowflake Stock

Snowflake (SNOW) offers a cloud-based data platform that enables enterprises to consolidate data into a single, easy-to-use system. The company's customer base includes a diverse range of industries, from finance and healthcare to retail and technology.

Valued at $54.9 billion, SNOW stock is down 16.7% YTD, compared to the tech-heavy Nasdaq Composite’s ($NASX) gain of 11.3%.

The increasing adoption of its platform by both new and existing customers has contributed to Snowflake's overall strong performance.

In the fourth quarter of fiscal 2024, Snowflake's total revenue increased 32% year over year to $774.7 million. Product revenue of $738.1 million made up the majority of the total revenue, with professional services accounting for the remainder.

In Q4, its net revenue retention rate was 131%, indicating that the company is growing rapidly. Plus, Snowflake's remaining performance obligations (RPO), or contractual revenue that has yet to be recognized, increased by 41% to $5.2 billion.

The company maintained a sturdy balance sheet, ending the quarter with a cash balance of $3.84 billion. It also generated an adjusted free cash flow of $810.2 million, which should help the company fund more AI projects to finally be able to turn a profit.

While Snowflake is still unprofitable, its fiscal Q4 losses decreased to $0.51 per share, down from $0.64 in Q4 fiscal 2023. Analysts expect the company to report a profit of $0.94 per share in fiscal 2025, with earnings further rising to $1.29 in fiscal 2026.

Snowflake will report its first-quarter fiscal 2025 results on May 22. Management expects a 26% to 27% increase in revenue in the first quarter. Furthermore, management anticipates 50% of its current RPO to be recognized over the next year, implying a boost to revenue in fiscal 2025.

For the full fiscal year, the company expects revenue to rise by 22% to $3.2 billion. Analysts forecast revenue growth of 22.2% in fiscal 2025 and 23.6% in fiscal 2026, respectively.

Overall, Wall Street rates Snowflake stock a “moderate buy.” Of the 41 analysts that cover the stock, a majority of them (26) rate it a “strong buy,” while three rate it a “moderate buy,” 10 rate it a “hold,” and two rate it a “strong sell.”

The average target price of $206.49 for SNOW indicates an upside of 25.1% above current levels. Plus, its Street-high estimate of $246 implies the stock can gain as much as 49% over the next 12 months.

Snowflake is trading at a forward price-to-sales ratio of 15.6x, compared to its four-year historical average of 72x.

With the AI era rapidly progressing, an increase in public cloud spending could benefit Snowflake's financial performance. Even a small initial investment in this promising company can result in significant returns as Snowflake grows and becomes more recognized.

On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.