2 Under-the-Radar Stocks Peter Lynch Would Love

By Rich Duprey Published Mar 14, 9:41AM EDT

Key Points

Peter Lynch was one of Wall Street’s greatest money managers, growing Fidelity Magellan from $20 million in AUM to over $14 billion in just 13 years.
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2 Under-the-Radar Stocks Peter Lynch Would Love — © Canva: Syda Productions and yangwenshuang from Getty Images Signature

Peter Lynch was a titan of money management. He turned Fidelity Magellan from a $20 million minnow in 1977 into a $14 billion whale by 1990. That’s a sizzling 29% average annual return. An investor who plunked down $10,000 with Lynch at the start would end up pocketing $280,000 13 years later.

When he hung up his hat, Lynch left behind two value-investing bibles: One Up on Wall Street and Beating the Street. These gems unpack his playbook in plain English, showing anyone how they can outsmart the market.

Lynch invented the “ten-bagger” term. That’s a stock that rockets 10 times your original investment. He also preached buying what you know. His secret sauce? Spotting simple, overlooked companies with blockbuster potential. He loved businesses so straightforward “any idiot can run them — because eventually, an idiot will.” You don’t need a crystal ball to find them, just sharp eyes on the ground.

Here are two stocks that channel Lynch’s vibe: they are under Wall Street’s nose, easy to grasp, and primed for tenbagger glory if you jump in before the herd.

Tractor Supply (TSCO)

Tractor Supply (NASDAQ:TSCO | TSCO Price Prediction) stands out as a compelling buy Peter Lynch would love because it blends solid fundamentals, a reliable dividend, and untapped growth potential. As the leading rural lifestyle retailer, its recent fourth-quarter earnings results, steady dividend payments, and expansion plans make it a stock worth grabbing before it surges.

Fourth-quarter earnings showed resilience amid a tough retail landscape. Net sales climbed 3.1% to $3.77 billion, beating the $3.66 billion estimate, driven by a 0.6% same-store sales bump and 26 new stores. Though earnings dipped to $0.44 per share, missing the $0.45 forecast due to a 9-basis-point gross margin drop to 35.2%, operating cash flow soared to a record $1.4 billion. This cash strength, paired with $1 billion returned to shareholders via buybacks and dividends, signals a business built to last.

The dividend sweetens the deal. Tractor Supply raised its quarterly payout 4.5% to $0.23 per share in February, marking 16 years of consecutive increases. At $0.92 annually, it yields 1.8%, modest but rock-solid, with a 42.9% payout ratio leaving room for future growth. Lynch would love this stability in a “boring” rural niche.

Tractor Supply’s growth potential seals it. The retailer’s “Life Out Here 2030” strategy targets a $225 billion market, with 90 new stores and an Idaho distribution center planned for 2025. Analysts peg earnings at $2.10 per share to $2.22 per share this year, with a $59 one-year consensus price target, implying 14% upside from its current price of around $51 per share.

At 25 times trailing earnings and 21 times next year’s estimate, TSCO stock looks fairly valued for 10% annual earnings growth through 2030. The retailer’s rural focus and cash flow make it a tenbagger contender..

Casey’s General Stores (CASY)

Midwest convenience store chain Casey’s General Stores (NASDAQ:CASY) is quietly shaping up as a smart buy after fiscal third-quarter earnings showed resilience, a rock-steady dividend, and a clear path for growth. Its Peter Lynch-style pick that is simple, familiar, and underappreciated. It could be a winner for investors seeking value and upside.

The earnings report wasn’t flawless, but it signals durability. Revenue soared 17% to $3.9 billion, crushing the $3.76 billion consensus, fueled by a 20.4% jump in fuel gallons sold and a 15.3% rise in inside sales, primarily pizza and snacks. Yet earnings were flat at $2.33, but beat the $2.03 estimate. Same-store sales grew a modest 3.7%, led by prepared foods, though fuel margins dipped to $0.29 per gallon due to the lower-margin CEFCO stores from the Fikes acquisition it made in November.

Casey’s is also a quiet dividend powerhouse with 25 years of consecutive increases. That would otherwise qualify for Dividend Aristocrat status, but because CASY stock is not part of the S&P 500, it doesn’t earn that designation.

With a 12.5% payout ratio on $14.35 trailing EPS, it leaves ample room for further hikes or reinvestment. Compared to its peers the payout is modest, but Casey’s prioritizes growth over splashy dividends.

Long-term, Casey’s aims to capitalize on a fragmented $600 billion convenience market, with rural dominance and food innovation as it builds a surprising and hidden pizza empire. Lynch would love its simplicity — gas, food, and rural roots. With CASY stock trading at a fraction of its sales while Wall Street sees 10% annual earnings growth over the next five years, make this C-store leader a buy.

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About the Author Rich Duprey →

After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, and Money Morning. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.