3 Underfollowed Stocks Wall Street Still Likes-And for Good Reason

Despite major gains by a small number of mega-cap tech firms last year, the market rewarded investors willing to take a chance on some slightly less well-known stocks in 2025. Among the best performers of the year were photonics company Lumentum Holdings Inc. (NASDAQ: LITE), which more than quadrupled in value, and aerospace broadband firm AST SpaceMobile (NASDAQ: ASTS), the latter of which climbed by about 244% for the year. Neither of these firms is small, but they are less known among many investors who focus on bigger names.

In 2026, a number of other companies—some even smaller and underfollowed across Wall Street—also have strong potential. These stocks entail a higher level of risk than some larger, more popular names, but their track records and developments suggest big upside may be in store for those investors willing to take the chance.

Movado's Watch Business Remains Steady Despite Tariff Pressures

Movado Group Inc. (NYSE: MOV) is a major producer of watches and jewelry products under brand names including Movado, Concord, and Ebel, among others. The company quietly improved fundamentals on multiple fronts in the latest reported quarter, growing sales by 3.1% year-over-year (YOY) and boosting gross margin by 80 basis points to 54.3% thanks to strong direct-to-consumer business. Adjusted operating income soared by more than 40% YOY, leaving the company at the end of the third quarter of 2025 with nearly $184 million in cash and no debt.

These results are impressive—despite an earnings per share (EPS) miss of 12 cents—because of the unfavorable tariff framework Movado faced. The takeaway for investors may be that Movado's brand remains strong and that its product momentum, including new collections, endorsements from popular influencers and celebrities, and special-edition product launches, continues to fuel new customer interest.

Movado certainly has room for further growth, particularly in the Middle East, where business has been slower. Analysts predict that earnings will climb by an impressive 152.4% in the coming year as the company benefits from the holiday rush, which will be reflected in its coming earnings report, and the potential for easing price pressures thanks to reduced Swiss watch tariffs. On top of this, Movado pays out a compelling 6.16% dividend yield. It's no wonder, then, that the small number of analysts following this stock see it climbing by more than 35%.

Nomad Is Taking Steps To Turn Things Around in 2026

U.K.-based frozen foods company Nomad Foods Ltd. (NYSE: NOMD) had a tough year in 2025, with shares declining by close to a quarter as sales slowed amid reduced promotions and weather headwinds. This prompted the firm to miss EPS predictions for the third quarter of 2025 by a cent and sent organic sales downward by 1.6% YOY.

All that said, there are some reasons to be optimistic about Nomad this year. First, the company starts the year fresh with a new CEO and a stated goal of accelerating organic growth. Adjusted free cash flow conversion remained strong to end the year, as management expects more than 90% for the full year.

This should help the company maintain both its dividend yield of 5.65% and its dividend payout ratio of 47.2%. Besides, retail volumes have been stabilizing, and a major efficiency program taking place over the next two years alongside price increases should help to further even things out. Analysts are optimistic, expecting 41.3% in possible share price upside.

Troubled Agricultural Materials Producer Mosaic Could Make a Recovery

Mosaic Co. (NYSE: MOS) produces concentrated phosphate and potash for agricultural applications. Shares have plunged by more than 28% in the last six months as tariff impacts and changes to global trade patterns have limited Mosaic's international business. 

Ultimately, however, demand for agricultural company products like the ones Mosaic provides is likely to remain strong, and the global supply of phosphate and potash is limited. This may help to stave off further declines in share price going forward.

The question is whether Mosaic will be able to reverse course and successfully navigate the changing ecosystem. It has realized $150 million in savings in the last year and aims to add $100 million to that figure by the end of this year. Cash flow remains a concern as of the last quarter, prompting the company to defer some dividends, but production is recovering after earlier challenges.

To be sure, Mosaic remains a risky play, but across Wall Street, analysts feel shares could recover by nearly 23%.

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The article "3 Underfollowed Stocks Wall Street Still Likes—And for Good Reason" first appeared on MarketBeat.