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Just For You 3 Overlooked Stocks Where Rewards Outweigh the RisksWritten by Nathan Reiff. Published 10/20/2025. 
Key Points - In a crowded market, lesser-known companies may present a unique growth opportunity despite the risks associated with being smaller than big-name firms.
- Weave Communications, PubMatic, and Zeta Global have all experienced rapid growth and have strong fundamentals.
- Each of these companies faces risks related to issues like profitability or competition within industry, but investors may find that the pros outweigh the cons.
With big tech and AI dominating headlines, investors can easily overlook lesser-known stocks with long-term growth potential. Firms like Weave Communications (NYSE: WEAV), PubMatic (NASDAQ: PUBM), and Zeta Global (NYSE: ZETA) carry risks—particularly limited brand recognition compared with industry giants—but each offers meaningful upside thanks to a mix of fundamentals and strategic positioning. For many analysts and savvy investors, the potential rewards can outweigh those risks. Niche Business Software Firm Growing Thanks to Acquisition, AI Integration At just over $500 million in market value, Weave Communications has carved out a niche by providing specialized communication software and tools for small and medium-sized businesses across a range of industries. Its industry-focused SaaS approach generates recurring revenue, and it appears to be working: in the latest quarter, Weave grew revenue roughly 16% year-over-year to nearly $59 million, beating estimates. Free cash flow also improved in the first half of the year (to $3.4 million from under $1 million in 2024), and gross margin rose in the most recent quarter. Tesla helped put EVs on the map – but there's another side to the energy transition that's even more ripe for disruption: how we power homes, farms, and businesses without relying on a fragile grid.
Paladin Power has developed a patented, all-in-one platform that combines energy storage, power conversion, EV charging, and smart load management into a single unit. Invest now and get up to a 30% bonus on shares! A catalyst for future growth is Weave's acquisition of TrueLark, a provider of AI scheduling and customer service software. As Weave integrates TrueLark's tools into its cloud platform, those capabilities should be particularly helpful in its medical segment—already among the company's fastest-growing areas. The added AI functionality could increase product "stickiness," driving deeper customer engagement and better retention. Weave's main risks include its lack of profitability—though operating losses have narrowed—and significant competition from larger players like Salesforce (NYSE: CRM). If Weave can continue to secure niche customers and scale its AI-enabled offerings, some analysts project upside of nearly 130%. Profitability and Revenue Growth in Fast-Changing Digital Ad Space Supply-side advertising platform PubMatic enables publishers to monetize and automate digital content in multiple ways. Despite a strong second-quarter—revenue rose 19% year-over-year as the company entered its 10th year of consistent profitability—PUBM shares are down about 45% year-to-date after platform changes by a DSP partner created headwinds. Those near-term challenges have pressured the stock, but the broader digital advertising market remains healthy and PubMatic's offering is compelling to many clients. One advantage for PubMatic is that it owns and operates its own infrastructure, which differentiates it from some larger ad-tech rivals. That control has helped the company maintain strong free cash flow and consistent profitability—uncommon in an industry that has faced turmoil in recent years. Risks persist: ad spending is cyclical and tied to macroeconomic conditions, and PubMatic's smaller scale means it must keep innovating to stay relevant. Still, analysts see more than 53% upside potential for PUBM, suggesting room for a recovery if headwinds ease. Big Revenue and Cash Flow Gains in the Challenging Marketing Space Zeta Global is a marketing-technology firm that uses AI to process data and personalize outreach at scale. Its total addressable market is large, and the marketing-tech sector continues to expand. Zeta also benefits from a solid client roster across retail, healthcare, financial services and other industries, contributing to a 35% year-over-year revenue gain to $308 million in the latest quarter. The company is also producing more cash: operating activities generated $42 million in net cash last quarter (up 35% YOY), and free cash flow rose 69% to $34 million. Those improvements have enabled Zeta to raise guidance for revenue and adjusted EBITDA for the quarter and full year, and the firm launched a $200 million stock repurchase and withholding program in July. Profitability remains a challenge as Zeta focuses on growth. The marketing-tech space is crowded, and data privacy regulations could complicate scaling efforts. Nevertheless, a majority of analysts rate ZETA as a Buy, and roughly 58% upside potential may attract investors willing to accept the risks.
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