As the market continues to soar, investors are on the hunt for stocks that offer sound value without draining the coffers. Amid this quest, certain Zacks-ranked stocks have emerged as prime contenders, combining affordability with potential growth. These stocks, all ranked Zacks Rank #1 (Strong Buy), also boast an “A” VGM Zacks Style Scores grade, reflecting a favorable combination of Value, Growth, and Momentum.
Arcos Dorados: Appetizing Options
Arcos Dorados, the largest McDonald’s franchisee globally, has caught the eye of market players with its sturdy performance while remaining attractively priced. Operating over 2,000 McDonald’s restaurants across Latin America, the company is poised for growth. Trading at 12.7X forward earnings, Arcos is anticipated to see a 19% increase in EPS by fiscal 2023, with a further 15% rise projected for FY24. The stock also boasts a promising price-to-sales ratio (P/S) of just 0.61X, set against significant top-line growth forecasts.
Carrols Restaurant Group: Sizzlin’ Potential
Carrols Restaurant Group, Burger King’s largest franchisee in the US, presents an enticing investment opportunity. With nearly 1,000 Burger King restaurants and over 60 Popeyes locations in its portfolio, the company has witnessed a remarkable stock surge. Earnings estimates show a substantial rise, with FY23 EPS set to soar 16% and FY24 EPS anticipated to climb 24%. Notably, the stock trades at a reasonable 14.7X forward earnings multiple and a compelling 0.23X sales ratio.
Virco Manufacturing: Quality Finds Value
Virco Manufacturing, which specializes in producing and distributing furniture for the contract and education markets, stands out as an affordable yet promising investment. Its stock, currently priced around $12, has seen significant earnings estimate revisions. Trading at just 8.9X forward earnings, Virco’s EPS is forecasted to expand 32% this year and soar another 27% in FY25. The stock has witnessed a remarkable +151% surge over the past year.
Zacks Reports Promising Sales Projections for Top-Ranked Stocks
Promising Projections for Trade Giants
Investment research firm Zacks foresees a potential stock boom as trade giants may be in for a highly lucrative period. According to Zacks, [Anonymous Company] trades at 0.75X sales, with a stellar top-line projection of a 15% leap in FY24, followed by an additional 8% expansion in FY25, culminating in a grand total of $289 million. These projections illustrate an impressive potential for growth and an attractive investment opportunity for astute investors looking to capture undeniable market gains.
Positive Market Performance
Now appears to be an auspicious moment to seize these affordable, highly-ranked stocks, with Arcos Dorados and Carrols Restaurant Group as leading contenders in Zacks’ top-rated Retail-Restaurant Industry, ranking in the top 25% of over 250 Zacks industries. Meanwhile, Virco Manufacturing’s Zacks Furniture Industry holds a respectable position in the top 22%. These affirmative rankings are backed by positive earnings estimate revisions, reassuring investors and setting the stage for potential upward movement in the stock market.
Underlying Potential for Explosive Growth
A little-known company lies at the heart of an exceptionally brilliant Artificial Intelligence sector that could have a remarkable economic impact reaching $15.7 trillion by 2030. As a result, Zacks offers a supplementary report unveiling this explosive growth stock, along with four other “must buys,” appealing to keen investors hoping to navigate the ever-evolving and increasingly complex stock market.