2 Growth Stocks Wall Street Might Be Sleeping On, but I'm Not

In This Article:

Key Points

Financial analysts aren't always right. The stock market as a whole also makes collective mistakes quite often. When you see traders and analyst firms underestimating the value of a fantastic growth stock, the misses can spell great long-term opportunities for you.

On that note, let's check out a couple of high-octane growth stocks that aren't getting the Wall Street love they deserve. One or both might be a good fit for your diversified nest-egg portfolio.

1. Fiverr International

The average analyst rating for Fiverr International (NYSE: FVRR) is a lukewarm "hold." Indeed, 9% of the company's shares are on loan to bearish short-sellers.

By comparison, the average S&P 500 (SNPINDEX: ^GSPC) stock has roughly 2.1% of its shares on short-seller loans and a slightly more bullish average recommendation. And Fiverr's stock has underperformed the S&P 500 dramatically over the last three years. The market index posted a total return of 57% over the three years ending on May 22, 2025. Fiverr investors took a 15% haircut over the same period.

That would make sense if Fiverr's business growth were fading out. On the contrary, the freelance gig vendor's annual sales rose 28% over this period, while free cash flows more than doubled:

FVRR Revenue (TTM) Chart
FVRR Revenue (TTM) data by YCharts

The comparison to S&P 500 stocks isn't exactly an apples-to-apples situation. Fiverr has never been a member of that elite group, and it isn't even eligible for consideration, since its headquarters are in Israel. But many actual S&P 500 members would sell their cats for financial growth trends like the chart shows.

Yet, the stock trudges along with minimal analyst support and plenty of negative short-seller bets. Fiverr shares are changing hands at just 12.2 times forward earnings estimates, or 3 times trailing sales. The stock looks incredibly undervalued, balancing these low valuation ratios against Fiverr's proven growth chops.

My own Fiverr holdings are down by 53% so far, going back to several smaller purchases in 2021 and 2022. I thought the stock looked affordable at that point, with impressive growth and a huge target market -- "to revolutionize how the world works together." It's an even more tempting buy at today's much lower starting price.

2. Roku

Media-streaming technology expert Roku (NASDAQ: ROKU) is another great example of undervalued growth stocks.