Snapchat parent company Snap Inc. (NASDAQ: SNAP), came public earlier this year in one of the most anticipated initial public offerings (IPOs) in recent memory.
However, like so many high-profile technology IPOs over the last couple years, it’s anyone’s guess how Snap will play out. Technology companies get a lot of hype, but they don’t always payoff for retail investors.
Examples aren’t hard to come by. Shares of Groupon (NASDAQ: GRPN) are down more than 80% since its first day as a public company. Zynga (NASDAQ: ZNGA)’s stock is off 70%. FitBit (NYSE: FIT) is down 80%. Lending Club (NYSE: LC) has fallen 80%. It’s still tough to pick winners among tech IPOs.
There are better opportunities for investors. Our research has identified three IPOs from the last year that investors may want to consider. Shares of all three are still trading at attractive prices.
With that in mind, here are the three overlooked IPOs to own:
Trivago (NASDAQ: TRVG)
Trivago shares are up just 10% from its IPO in December. Users can search and compare hotels and rates on Trivago, making it trio in the industry with Priceline (NASDAQ PCLN) and Expedia (NASDAQ: EXPE). Trivago was the last “big” IPO of 2016, but shares are flat in 2017.
More people are traveling, and that is a powerful trend for Trivago and the travel industry. Booking platforms and hotels advertise on Trivago and pay for the clicks received from Trivago users. It’s worth noting that Expedia owns the majority stake in Trivago, and Priceline is where it gets a lot of its revenue. Considering both Priceline and Expedia are both very solid and stable companies within the travel industry, having such a close relationship with the two isn’t necessarily a negative. Trivago continues to grow revenues nicely, and trading at just two times sales, it’s trading at a discount to major peers.
ZTO Express (NYSE: ZTO)
ZTO Express is a Chinese package-delivery company that came public in October 2016. Shares have fallen almost 33% from its October IPO price as investors remain cautious about the Chinese economy.
However, the growth opportunity in the Chinese shipping industry will continue to do well given the large population. The parcel delivery market in China is expected to more than double from $600 billion in 2015 to $1.5 trillion in 2020.
ZTO Express is a diversified bet on the continued boom of the e-commerce market in China. And for U.S. investors, ZTO is the best way to tap into the consumer market in China. Plus, the company is already profitable, which is rare for a newly public company.
MGM Growth Properties (NYSE: MGP)
MGM Growth Properties is the real estate spinoff of MGM Resorts (NYSE: MGM) and it completed its IPO last year. It’s a real estate investment trust (REIT) that owns and leases casinos and hotels. The beauty of REITs is that they pay impressive dividends, and MGM Growth’s dividend does not disappoint. It offers a 6% dividend yield.
The REIT is one of the best pure-plays on the U.S. gambling market, with the majority of its resorts in Las Vegas. But shares are flat over the last six months. Investors are shunning the casino stocks; they’re worried about a slowdown. However, MGM is a big bet on the growth and rebound of the Las Vegas gambling market. MGM Resorts offers an attractive 6% dividend investors won’t find elsewhere.
All three overlooked IPOs above are relatively new issues that are still attractive buying opportunities.