Large trillion-dollar companies are tightening their grip on the market, often by acquiring smaller rivals. This trend will likely pick up with new regulatory leadership, but a few under-the-radar businesses will continue prospering by anchoring themselves in unique market segments.
Digging up these buried treasures isn’t easy, and that’s exactly why we created StockStory. That said, here are three hidden gems that could be the next 100 baggers.
e.l.f. Beauty (ELF)
Market Cap: $6.93 billion
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Is ELF a Good Business?
- Market share has increased over the last three years as its 47.6% annual revenue growth was exceptional
- Earnings per share grew by 48.6% annually over the last three years and trumped its peers
- Free cash flow margin grew by 6.5 percentage points over the last year, giving the company more chips to play with
e.l.f. Beauty’s stock price of $117.12 implies a valuation ratio of 29.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Warby Parker (WRBY)
Market Cap: $2.98 billion
Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Why Does WRBY Stand Out?
- Rapidly increasing store base reflects a desire to sell in new markets and scale quickly
- Unique assortment of products and pricing power lead to a best-in-class gross margin of 54.9%
- Earnings growth has massively outpaced its peers over the last three years as its EPS has compounded at 68.5% annually
At $24.26 per share, Warby Parker trades at 69x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
HCI Group (HCI)
Market Cap: $2.03 billion
Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.
Why Will HCI Beat the Market?
- Net premiums earned expanded by 26.7% annually over the last two years, demonstrating exceptional market penetration this cycle
- Balance sheet strength has increased this cycle as its 63.4% annual book value per share growth over the last two years was exceptional
- Notable projected book value per share growth of 21% for the next 12 months hints at strong capital generation
HCI Group is trading at $156.29 per share, or 2.5x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
