Key Highlights
-
After a period of stagnation, infrastructure construction projects are beginning to revive.
-
Nvidia has been a dominant player in the AI sector, but it’s not the only significant contender anymore.
-
Circle Internet Group isn’t well-known yet, but it might be part of your daily transactions soon.
If you’re looking to invest some extra cash to potentially grow your portfolio, you might want to steer clear of popular stocks for now. Instead, consider lesser-known companies that could provide better opportunities.
Here’s a closer look at three intriguing investment possibilities that might fit well into just about any portfolio.
Considering investing $1,000? Our analysts have shared their insights on the best stocks to buy now.
1. Fluor
Major construction projects have been stalled since the onset of the pandemic, initially due to logistical hurdles and later because of rising costs and economic challenges.
However, many projects can’t be postponed forever due to urgent needs. There’s a lot of potential, especially as funding from the Infrastructure Investment and Jobs Act is beginning to flow. As of August, only about 40% of the allocated funds were disbursed, and a significant portion is still unassigned.
Fluor (NYSE: FL) is a major player in this space, involved in significant undertakings like roads and nuclear plants. They’re gearing up to address a growing energy demand that other sources can’t meet quickly or affordably.
With a current backlog of $28.2 billion after securing new contracts worth $3.3 billion recently, Fluor is positioned for potential growth, although it’s worth noting that heavy construction tends to be slow to ramp up.
Despite its lackluster performance over the past year, it might be undervalued given that sales could rebound next year.
2. Advanced Micro Devices (AMD)
Nvidia has long been at the forefront of the AI boom, largely due to its critical technology in AI data centers.
Yet, competition is emerging, notably from Advanced Micro Devices (NASDAQ: AMD), which has started to make waves.
This is natural; traditional processors by Intel are getting a run for their money because AMD combines strengths from both processors and graphics cards. Their entry into AI workloads seems less like a stretch and more like a logical evolution.
AMD is now a tech supplier for notable names, including Oracle and OpenAI. CEO Lisa Su recently mentioned that AMD is entering a growth phase, focusing on tailored graphics processors designed for heavy AI tasks which could spur impressive revenue growth in the coming years.
3. Circle Internet Group
Add Circle Internet Group (NYSE: CRCL) to your radar if you’re considering a long-term investment.
It’s not a well-known name, but it has the potential to make a mark, especially with a market cap around $20 billion.
This company seeks to address one of the challenges surrounding cryptocurrencies: their use often requires converting back to fiat currency, which can be complicated.
Circle provides transaction technology for banks and merchants alongside user-friendly digital wallets, somewhat akin to PayPal, but dealing in cryptocurrencies. They earn interest on the digital currency they manage, with room for future revenue avenues.
Currently, they mainly operate with US Dollar Coin (Crypto: USDC) and Euro Coin (Crypto: EURC), both effectively mirroring their fiat counterparts. The circulation of USDC reached around $74 billion in Q3, reflecting significant growth and leading to a revenue increase of 66% to $740 million.
While there are inherent risks—especially with fluctuating stock prices—the recent declines may be more about market trends than Circle’s fundamentals.
Should You Invest $1,000 in Fluor?
Before diving into Fluor stock, consider what our analysts have to say.
The Motley Fool Stock Advisor has pinpointed other stocks they believe are better buys right now—Fluor isn’t on that list, yet there are ten others that might offer substantial returns in the next few years.
In the grand scheme, investing based on strong historical performance can yield impressive outcomes, a notion supported by the Stock Advisor’s average return of 991%, significantly outperforming broader market benchmarks.
