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5 Underfollowed Stocks That Are Projected To Explode

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Not all stocks receive as much attention as they deserve. Zacks customers can utilize our Premium Screens to discover underfollowed stocks that are hidden throughout the market. Numerous analysts cover a multitude of stocks that are trading every day. However, some stocks do not receive as much analyst consideration as they might deserve.

Our Premium Screening tool has the ability search for stocks that lack trading volume and broker recommendations. This tool allows for customers to find investments that possess strong upside, but have been mostly neglected by the market. These stocks represent a few investments that could possibly turn out to be hidden gems.

Check out these underfollowed stocks to buy now:

1.       Ciena Corporation (CIEN - Free Report)

Ciena Corporation is a network specialist, focused on expanding the possibilities for its customers’ networks while reducing their cost of ownership. Ciena has continued to build its product portfolio by expanding beyond its original optical networking expertise in order to grow its customer base. Additionally, Ciena’s revenues are expected to surge due to increased demand for packet-optical transport and switching products, integrated network and service management software.

Over the past 60 days, Ciena’s full-year EPS estimates increased by 9.56% to $1.49. Furthermore, the company posted a RoE of 18.60% and Current Cash Flow Growth of 17.33%. Both of these metrics compare favorably to the rest of the Fiber Optics industry. Also, Ciena Corporation currently has an EV/EBITDA of 13.18, which beats the industrial average of 23.11. Ciena Corporation presently sports a Zacks Rank #1 (Strong Buy).

2.       CBOE Holdings, Inc. (CBOE - Free Report)

CBOE Holdings operates as the holding company for Chicago Board Options Exchange, which is an options exchange which operates as an organized marketplace for the trade of listed options on equity securities. CBOE Holdings acquired Bats Global Markets a couple of months ago. This acquisition diversifies CBOE’s product portfolio with the addition of European and U.S. equities, Global FX, and Global ETPs. Additionally, the company boasts an improving cash flow balance as they have lowered debt by $150 million and rewarded its shareholders by raising the quarterly dividend by 9% in July 2016.

CBOE Holdings posted Projected Sales Growth of 52.76% and Projected EPS Growth of 39.26%, both of which compare favorably to the industrial averages of 3.79% and 11.41%, respectively. Also, CBOE currently holds a beta rating of 0.53, which means that the stock is widely considered less volatile. The company also pays a steady 1.10% dividend to its shareholders. CBOE Holdings currently has a Zacks Rank #1 (Strong Buy).

3.       Dave & Buster’s Entertainment, Inc. (PLAY - Free Report)

Dave & Buster’s Entertainment Inc. owns and operates venues in North America that combine dining and entertainment. Dave & Buster’s holds an “A” grade for Growth as the company has continued to develop in recent years. In fact, Dave & Buster’s has been a model of consistency as they have defeated their earnings estimates in each of an incredible eleven straight operational quarters by an average of 54.74%. Also, the company expects to open twelve new locations during 2017 and maintain a 10% annual unit growth rate. Dave and Buster’s is projected to outperform the restaurant industry, as 56% of the company’s total revenues were collected from the amusement aspect of the company.

Dave & Buster’s reported a Net Margin of 9.78% compared to an industry-wide average of 4.04%. In essence, the company is retaining a much larger profit per dollar than their industry peers. Further, the firm features a Cash Flow per Share of $4.26 compared to its competitors at $1.54, while the company’s share price skyrocketed upward 45.84% over the past fiscal year. Overall, Dave & Buster’s sports a Zacks Rank #1 (Strong Buy).

4.       The Brink’s Company (BCO - Free Report)

The Brink’s Company is a global leader in supply chain management and cash management services. The Brink’s Company industry is located in the Top 17% of the Zacks Industry Rank. Further, Brink’s reported a Cash/Price ratio of 63.64 and RoE of 31.50% compared to their competitors at 15.18 and 15.15%, respectively. Also, Brink’s boasts a Sales/Assets ratio of 1.43, which beats their industry peers. This shows that Brink’s is earning more revenue on their assets than their competitors.

The company posted Current Cash Flow Growth of 9.20%, which fares well among its industrial competitors. Brinks’ share price has more than doubled in the past year with an increase of 139.87%. Now might be the perfect time to purchase shares of Brink’s as it was recently promoted to a Zacks Rank #1 (Strong Buy).  

5.       Abbott Laboratories (ABT - Free Report)

Abbott Laboratories is a global healthcare company focused on improving life throughout the research and development of technologies. Abbott recently acquired St. Jude Medical which holds a strong position in areas such as atrial fibrillation, heart failure and chronic pain. These acquired strengths will complement Abbott’s position in the coronary interventions and mitral valve disease markets. Abbott will now compete in almost every field of the cardiovascular market, which bodes well for its shareholders.

Additionally, Abbott believes in rewarding its shareholders with a respectable 2.19% dividend. The company posted a projected sales growth of 26.68% and P/E ratio of 19.70, both of which defeat their competitors’ averages of 2.25% and 27.46, respectively. Finally, Abbott has represented a model of consistency, as they have beaten their earnings projections for the past twenty operational quarters dating back to 2012. Abbott Laboratories sports a Zacks Rank #2 (Buy).

 

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