The Dollar’s Ripping Higher: Cash In With These 3 Under-The-Radar Plays

| April 16, 2024

Speculators are invited to consider these under-the-radar stocks

  • Zero in on these under-the-radar stocks.
  • Star Bulk Carriers (SBLK): Star Bulk Carriers may rise on the implied increase in economic activity.
  • International Money Express (IMXI): International Money could benefit from global migration trends.
  • Sibanye Stillwater (SBSW): Sibanye Stillwater’s palladium business deserves a closer look.
Source: Pixaby

With the hotter-than-expected March jobs report, you might think the dollar has lost value due to inflation, thus clouding the narrative of under-the-radar stocks. And yes, inflation is stubbornly high. That’s what happens when more dollars chase after fewer goods.

At the same time, the dollar is very much elevated relative to a basket of international currencies. Indeed, the U.S. dollar index ripped higher, settling at 106 points. With that, Americans have (relatively speaking) increased purchasing power.

Under this scenario, many enterprises should benefit. However, these under-the-radar stocks could see a more substantial rise compared to their peers.

Star Bulk Carriers (SBLK)

Operating under the marine shipping segment of the industrials category, Star Bulk Carriers (NASDAQ:SBLK) presents an intriguing idea for under-the-radar stocks. Per its public profile, the company’s vessels transport a range of bulk commodities. These include iron ores, minerals, grains, bauxite, fertilizers and steel products.

As stated earlier, the March jobs report delivered better-than-anticipated numbers. There’s an argument to be made that the data doesn’t lie. In other words, with increasing commercial activities comes a rise in demand for critical commodities. Essentially, Star Bulk is positioned well. Not surprisingly, analysts rate SBLK a unanimous Strong Buy with an average price target of $28. That implies upside potential of over 21%.

For the current fiscal year, experts project that earnings per share could hit $4.03. That’s a big jump from last year’s print of $1.84. And in the following year, EPS could rise to $4.78. However, the top-line projection is curious, with 2024 sales estimated to decline by almost 6%. Still, analysts are looking for sales to rebound in fiscal 2025 to $1.03 billion.

And, given the positive fundamentals, the projected revenue upside could come earlier.

Operating in the broader technology sphere, International Money Express (NASDAQ:IMXI) focuses on infrastructure software. With its subsidiaries, International Money is an omnichannel money remittance services enterprise. It operates in the U.S., Latin America, Mexico, Central and South America, the Caribbean, Africa and Asia.

Fundamentally, IMXI could be a relevant play for under-the-radar stocks thanks, in large part, to the robust American economy. Because of the strength of our economic machinery, more people from across the globe will likely come here for opportunities. I don’t want to get into the politics of it, but let’s say the Democrats maintain power — IMXI could then be a big hit as people send money back home.

Analysts peg IMXI as a consensus Strong Buy with a $26.25 price target, implying 21% upside potential. For fiscal 2024, they’re looking for EPS of $2.19, above last year’s print of $1.95. Further, revenue could land at $691.17 million, implying 4.9% growth from last year’s sales of $658.74 million.

And with fiscal 2025 revenue projected to hit $751.25 million, experts believe that International Money’s addressable market will continue to expand.

Sibanye Stillwater (SBSW)

Simply the riskiest idea on this list of under-the-radar stocks, Sibanye Stillwater (NYSE:SBSW) is a resource mining enterprise. Based in South Africa, Sibanye mines a variety of in-demand assets, including gold. Certainly, the yellow metal should thrive based on current fear-trade dynamics. However, I’m particularly interested in the company’s palladium business.

Palladium is an interesting precious metal. Industrially, it’s a critical component in the manufacturing of catalytic converters. With electric vehicles suffering from demand drains, combustion-powered cars — including hybrid vehicles — enjoy an extended viability pathway. Further, Russia has historically dominated palladium production. That story is obviously a complicated one now.

So, what do we have now? Limited supply, high demand — that should theoretically bode very well for SBSW stock. Further, shares trade at only 11.3X forward earnings and 0.63X trailing-year revenue. Both stats are undervalued relative to the mining industry.

However, analysts only rate shares as a consensus Hold. Still, if palladium demand rises as I think it will, SBSW stock would be one of the names to watch.

This post originally appeared at InvestorPlace.

On the date of publication, Josh Enomoto 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 Publishing Guidelines.

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