In the past few years, there’s no doubt that the technology industry has been booming. In 2022, the IT services market size was estimated to be $1.22 trillion and expected to continue growing at a CAGR of 9.7% from 2023 to 2030. This tremendous growth can largely be attributed to the demand for generative artificial intelligence and a rising emphasis on innovation and automation. Yet, this industry has often overshadowed other sectors, taking front stage in many news articles.
Whether that be hidden retail companies becoming trendy picks due to social commerce, health insurance firms booming from government-sponsored services, or financial companies being driven by the need for macroeconomic data analytics, dozens of undervalued stocks are seemingly flying under the radar of investors. As such, in this article, we take a step back from the technology industry to highlight three non-tech stocks with tremendous momentum potential.
JP Morgan Chase & Co. (JPM)
JP Morgan Chase & Co. (NYSE:JPM) provides global financial services, including investment banking, commercial banking, and asset management. Yahoo! Finance analysts estimate that the stock will trade within a one-year price range from $150 to $238, with an average of $190.
JPMorgan just announced its new expansion plan to open more than 500 new branches over the next three years and renovate another 1,700. This continued plan of expansion seeks to penetrate rural markets with little competition. With increased expansion across the country, JPMorgan’s commitment to top-tier commercial banking experiences will inevitably drive customer loyalty, recurring revenue, and overall financial growth.
The company has extremely strong financial backing, with a staggering 39% year-over-year (YoY) EPS growth and 17% YoY revenue growth. Additionally, its P/E ratio of 10.79x sits on par with its industry average of 9.24x and five-year average of 10.84x. With intriguing growth potential and incredible financials, JPM is a strong non-tech addition that will provide solid returns for years to come.
Crocs, Inc. (CROX)
Crocs, Inc. (NASDAQ:CROX) produces its own brand of foam footwear. Yahoo! Finance analysts predict the stock will trade within a one-year range of $79 to $160 with a mean of $125.
The company’s traditional shoe is top of the line in comfort and appearance, leading the brand to continue growing post-pandemic. The company aims to stimulate growth even more through collaborations in 2024. Notable partnerships with Toy Story and the legendary graffiti artist Futura are set to draw public attention and create a “collectors shoe” program to drive growth.
Furthermore, the company has fantastic financials, with an impressive year-over-year (YoY) gross profit growth of 17% and EPS growth of 24%. The company’s P/E ratio of 10.85x shows that the company is likely to be undervalued, as the industry average is 19.76x, and the company’s five-year average is 12.49x. Overall, the Crocs brand remains strong with strong financial backing and intriguing growth opportunities, making it a great prospect with significant momentum.
Humana (HUM)
Humana Inc. (NASDAQ:HUM) is a prominent health insurance provider well-known for offering a wide range of healthcare plans to private individuals, groups, and the U.S. military. The company is currently trading at $370.28, with Yahoo Finance analysts projecting a one-year price range of $359.00 – $470.00, with an average target price of $411.53.
Humana’s 2023 financials showed a promising sign of growth sure to extend through 2024. Humana reported total revenues of $106.4 billion and adjusted earnings per share of $26.09 for 2023. This shows significant growth compared to the 2022 financials of just $92.8 billion in revenue and an adjusted EPS of $25.88. Several analysts predict this growth will continue, with estimated EPS values going as high as $37 in 2025. While its P/E ratio of 18.51x puts it at a relatively fair valuation compared to the healthcare industry’s P/E ratio of 17x, Humana’s potential as a healthcare powerhouse is a worthy consideration for any investor looking for a non-tech stock.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.