Hidden Gems: 3 Quiet Stocks With Loud Potential

Short-term volatility has been a hallmark of the market in 2025, but one way investors may be able to bypass this concern is by adopting a longer time horizon for their investments. After all, the longer one is able to wait to reap the rewards of an investment, the greater the chance that the investment will manage to recoup any losses incurred in the near term.

There are many ways investors can evaluate companies for long-term potential. One of the simplest, particularly for those who place some trust in Wall Street analysts, is to consider their price target estimates. With the caveat that these figures offer a single firm's assessment of a stock's potential performance, taken at a specific instant in time, averaging these price targets may help to reduce the impact of outlier ratings.

Three stocks that may slip past investors' attention but which nonetheless have consensus price targets suggesting healthy upside potential may be found below.

Undervalued Telecom Play With Strong Earnings Growth and Analyst Backing

Dycom Industries (NYSE:DY) offers contracting services for the U.S. telecommunications infrastructure and utility industries. With an average trading volume below 400,000 shares, DY stock is liquid but still tends to fly under the radar for many investors. This is a potential oversight, as the firm plays a central role for many of its telecom clients as they create and maintain critical infrastructure.

Both Dycom's top and bottom-line growth have been impressive. In the fourth quarter of 2024, contract revenues surged 13.9% year-over-year (YOY) to nearly $1.1 billion. This was an acceleration over the fourth quarter of 2023, when those revenues climbed by just 3.8% YOY.

Diluted earnings per share (EPS) have also experienced rapid growth, climbing more than 40% YOY to $1.11 for the latest reported quarter. Driving the company's performance is a strong and growing demand for its services across the telecommunications sector.

Though shares have declined by about 14% year-to-date (YTD), in keeping with the broader market trajectory, Dycom now has a price-to-sales ratio of 0.93, suggesting that investors may be able to capture value at this time.

Given that JPMorgan Chase analysts recently initiated coverage with an Overweight rating, and that short interest in DY shares has been dropping rapidly, this window of opportunity may close quickly.

Deep-Value Construction Stock With Government Ties and $16B Pipeline

Amid tariff concerns in 2025, investors may overlook construction firms like Orion Group Holdings (NYSE:ORN).

However, Orion's unique focus on the industrial sector, including the construction, restoration, and maintenance of marine transportation facilities, pipelines, and similar projects, may give it a key advantage over more traditional construction companies.

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Specifically, as data center demands increase, there is an incentive for companies to explore underwater facilities, potentially creating soaring demand for Orion's services. Additionally, the company is well-positioned to serve the U.S. Navy in a host of different projects, making it a likely candidate for government contracts.

As of the end of 2024, Orion's new business pipeline was roughly $16 billion, and its backlog was just under $1 billion for the fourth quarter. During that period, the company boosted its top-line performance, gross profit, and swung back to profit from a net loss in the prior-year quarter, beating analyst predictions on earnings.

Skittish investors wary of the broader construction industry may have played a role in ORN shares falling roughly 21% year-to-date. However, this pullback has made the stock increasingly attractive as a value opportunity, now trading at a price-to-sales (P/S) ratio of just 0.29.

It's no surprise, then, that analysts unanimously rate Orion a Buy, with a consensus price target more than double current trading levels.

Risky Industry, But Niche Market and Vote of Confidence From Analysts

Specialty building products firm BlueLinx Holdings (NYSE:BXC) will likely face increased materials costs due to tariffs. However, the company's strong base of operations in the United States and the demand for its specialized products may help to mitigate this issue.

With an average trading volume of just 80,000 shares, investors very frequently overlook BXC stock.

Nonetheless, analysts have a strong view of the company's prospects—all four reviewing BXC shares have rated them a Buy, and the stock has a consensus price target close to 75% above the current price.

While risks remain, analysts' optimism may be enough to inspire some investors to examine the stock more closely.

BlueLinx’s focus on specialty and value-added products gives it a competitive edge in a niche segment of the construction supply chain. Its lean operating model and strong free cash flow generation also position it well to navigate cost pressures.

These strengths could give the company more flexibility in managing volatility than its larger, less agile peers.

Written By: MarketBeat.com