2 Under-The-Radar Stocks Ready for Takeoff When Rate Cuts Arrive

investing.com:

The market has been dominated by the magnificent 7, driving key indexes upward in 2023 and 2024. Meanwhile, smaller asset classes, such as small and mid-caps, have struggled due to the high interest-rate environment.

However, signs of recovery have emerged since the end of last year, though the true turning point will likely coincide with the first cuts, provided the economy remains strong.

Now, let's examine a couple of stocks that could benefit from the first cuts and could make a great addition to your portfolio at current levels.

Stride (NYSE:LRN) operates in educational services, offering online curriculum for schools.

In its latest quarterly report, the company achieved record levels on its balance sheet, signaling positive prospects.

Currently, InvestingPro rates the company's overall health at 4 out of 5, with the estimated intrinsic value nearly 30 percent higher than its current value.

Source: InvestingPro

Earnings and revenue growth have also shown an upward trend, with valuations, however, suffering lately from the general decline throughout the industry.

Source: InvestingPro

Confluent Inc (NASDAQ:CFLT) is a 'cloud-based company that operates a streaming platform both in the U.S. and internationally.

The charts indicate that the latest quarterly report gave a very positive boost. The image below shows an interesting gap up supported by good volumes.

Taking a more cautious stance, there may be opportunities to buy with stops at appropriate levels.

The stock surpassed analyst estimates, sparking a rally. InvestingPro reports that the stock's price target is now being revised upwards for the next quarter.

Source: InvestingPro

Handling small/mid caps requires a proper strategy and a thorough assessment of all