One economic and geopolitical concern after another this year has led to uncertain market trends and increased volatility, leaving investors unsure of which direction to take.
However, for those with a long-term view, some stocks remain attractive regardless of market conditions. This is especially true of “Disruptive Innovators,” i.e., companies with technologies capable of revolutionizing their industries.
There are well-known examples of such companies, such as Amazon (NASDAQ:), which transformed online retail; Netflix (NASDAQ:), which reshaped the global audiovisual industry; Uber (NYSE:), which disrupted the taxi and transportation space; and of course, Airbnb in the hospitality sector.
For investors searching for the next wave of successful disruptive innovators, the Investing.com screener offers a valuable tool: the predefined “Disruptive Innovators” search, which currently identifies a group of stocks that have collectively gained +31% over the past three months.
This means that, beyond their medium- and long-term potential, these stocks have performed particularly well in recent months, despite challenges including tariff disputes, geopolitical tensions, and conflicting economic data.
This free search “uncovers companies with disruptive technologies or business models positioned for rapid growth.”
More specifically, it identifies stocks that meet the following criteria:
This search currently highlights around 100 stocks. Here are the 5 stocks on this list that have recorded the strongest gains over the past 3 months:
We then wanted to refine the search, to target stocks with a potential upside of over 30% according to InvestingPro Fair Value (note that use of this filter in the screener is reserved for InvestingPro subscribers).
Remember: InvestingPro Fair Value calculates an intelligent average of several recognized valuation models for each stock on the market.
Excluding stocks with a potential of less than +30% according to InvestingPro Fair Value, the number of potential opportunities falls to 13:
* Click on the image to unlock the full list of picks.
At this stage, the search identifies high-growth, highly profitable companies that are also undervalued by at least 30%.
The search therefore contains no criteria relating to financial strength. We have therefore added an extra step, filtering out companies with an InvestingPro Health Score of less than 2.5/5. Please note that, as with Fair Value potential, this is a premium filter reserved for InvestingPro subscribers.
Reminder: The InvestingPro Health Score is based on several key financial metrics and peer comparisons to assess a company’s level of financial strength.
With this additional criterion, the list of stocks has been reduced to 6 opportunities:
* Click on the image to unlock the full list of picks.
Note that these stocks have upside potential ranging from +31.4% to +44.2% according to InvestingPro Fair Value. What’s more, some of them are already in the midst of a bull run, with one of the stocks on the list soaring by almost 50% over 3 months.
Conclusion
These financially strong stocks, undervalued by valuation models, could therefore prove to be solid opportunities for investors wishing to sidestep market noise and invest in disruptive innovators with solid short- and long-term potential.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk rests with the investor. We also do not provide any investment advisory services.