Betting on the best hidden stocks can take your investment portfolio to the next level.

In a year dominated by a handful of tech giants, it’s imperative to expand your portfolio with high-potential stocks. These stocks have flown under the radar but are positioned for substantial gains ahead of a broader market rally expected later this year.
Furthermore, as their underlying companies become more popular, their stock prices are likely to rise in tandem, offering early investors healthy long-term profits. Moreover, with relatively low investment costs, hidden gems can help to significantly reduce risk while offering excellent upside potential.

With that in mind, here are three undervalued hidden gems that are poised for a breakout. These stocks have strong underlying businesses with healthy long-term growth trajectories that can potentially take your portfolio to the next level. You can also buy these stocks for under $20, like buying a movie ticket on a discount day.

Cemex (CX)

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Despite the pessimistic attitude towards Mexico after the recent presidential elections, Cemex (NYSE:CX) continues to shine with its excellent operational performance. In Mexico, where the company continues to capture a significant portion of its revenue, demand and margins have not only held up but also grown substantially. To put things into perspective, over the past twelve months (Time for the TTM) EBITDA, net profit and leveraged cash flow margins amount to 17.7%, 1.2% and 10.7% respectively.

Furthermore, Cemex’s effective management strategies have enabled it to benefit from the reshoring and nearshoring wave that has breathed new life into the Mexican manufacturing sector. Also, despite the slowdown in growth from the US, Cemex remains committed to effectively leveraging large-scale infrastructure projects to maintain momentum.

So, as the company’s management adjusts its strategies to the dynamic market conditions, expect CX stock to continue to go from strength to strength. Moreover, the stock is an excellent buy at current prices, having fallen more than 18% year-to-date (YTDIn addition, analysts on Wall Street give the stock a moderate buy recommendation, offering an upside potential of 43% from current levels.

SoFi (SOFI)

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SoFi (NASDAQ:SOFI) is one of the most promising prospects in the fintech space, despite recent shortcomings that have weighed on its stock price. Headwinds from student loan forgiveness and rising delinquency rates led to a 21% drop in price last year. However, the underlying business continues to shine, with tremendous user growth and a notable increase in profitability.

Encouragingly, SoFi has achieved profitability in recent quarters, a major breakthrough that underscores its operational efficiency. Furthermore, the technology platform side of the business continues to complement the lending division, with revenues up 54% in the first quarter of this year. These results indicate that SoFi has the potential to capitalize on its diverse business model.

SOFI shares are trading at just $7.47, down significantly from their all-time high of $25.78. However, given their innovative nature and long-term growth, I expect the stock to rebound into double digits soon.

Grab (GRAB)

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Singaporean tech giant To grasp (NASDAQ:TO TAKE) has quickly become a major player in Southeast Asia’s growing internet economy. As a super app, it offers a wide range of e-services covering everything from transportation to digital finance in key markets including Indonesia, Malaysia and Vietnam. It stands out from the crowd with its groundbreaking presence in some of the world’s fastest-growing regions, offering excellent long-term prospects.

Financially, Grab continues to impress, beating top-line expectations for the past nine consecutive quarters while making major strides in improving its bottom line. In Q1, the company reported EPS of -3 cents, a marked improvement that forced management to raise its EBITDA forecast by $70 million for the coming quarter. It also effectively reduced losses by $134 million in Q1 through efficient cost control and operational optimization.

Analysts predict that the loss will narrow to 3 cents per share this year, and expect the company to break even with a profit of 4 cents in 2025. Add to that the impending interest rate cuts, and you have a recipe for monster long-term success for Grab.

On the date of publication, Muslim Farooque had no (direct or indirect) 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

The responsible issuer had no positions (either directly or indirectly) in the securities mentioned in this article on the date of publication.