With the S&P 500 index trading near all-time highs, the initial public offering market has been robust. It’s also not uncommon that quality IPO stocks remain under-the-radar for a while before surging higher as it catches analyst and investor attention. Early days of listing can therefore provide investors with some good trading and long-term investing opportunities.

The focus of this column is on under-the-radar IPO stocks of 2024 that look attractive from a valuation perspective. In my view, these IPO stocks can double within the next 6 to 12 months. With the possibly of multiple rate cuts in the coming quarters, I believe that growth stocks are poised for a big rally. These IPO stocks are therefore good trading bets for the medium-term.

Further, considering the fundamentals and industry potential, these ideas can also be considered for the long term. Let’s discuss the business and industry factors that are likely to be catalysts for these stocks trending higher.

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Ibotta (IBTA)

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Ibotta (NYSE:IBTA) allows (through Ibotta Performance Network) consumer packaged goods brands to deliver digital promotions to consumers. After trading at highs of $117 after listing, IBTA stock has corrected to current levels of $70. I see this as a good buying opportunity with the stock trading at an attractive forward P/E of 23.

The first point to note is that Ibotta has a total addressable market of $200 billion. With a big market potential and more than 850 clients, I expect healthy top-line growth to sustain. Further, I am only talking about the addressable market in the U.S. Potential overseas expansion can help in accelerating growth.

For Q1 2024, Ibotta reported revenue growth of 54.7% on a year-on-year basis to $71.8 million. For the same period, adjusted EBITDA was $22.6 million with an EBITDA margin of 28%. Growth metrics have therefore been healthy coupled with positive operating cash flows. An equally strong performance in the coming quarters is likely to translate into stock re-rating and a sharp rally from oversold levels.

PACS Group (PACS)

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PACS Group (NYSE:PACS) has been steadily moving higher since the IPO. However, the healthcare stock remains undervalued at a forward P/E of 21.2. Once the idea is in the limelight, I expect a sharp rally.

As an overview, PACS Group is a provider of skilled nursing and assisted living facilities in the United States. The company was founded in 2013 and has pursue aggressive expansion. As of Q1 2024, PACS reported 218 facilities across nine states.