This week’s selloff was intensified by economic concerns stemming in the financial sector after the collapse of SVB Financial Group’s (SIVB) Silicon Valley Bank.
However, the broader selloff in markets is creating opportunities and here are three stocks that investors should keep an eye on.
Salesforce (CRM)
We’ll start the list with a Zacks Rank #1 (Strong Buy) as Salesforce’s stock is very intriguing at the moment. After crushing its Q4 top and bottom line expectations last week Salesforce stock had been seeing some nice momentum.
The wrench that was thrown at the rally from broader economic concerns may offer investors a better buying opportunity. Furthermore, a small correction can be healthy and offer longer-term support.
Plus, earnings estimate revisions have been trending higher following Salesforce's stellar fourth-quarter results. This should continue to be a catalyst for Salesforce stock after the smoke clears from this week’s market decline.
Throughout the quarter, Salesforce’s fiscal 2023 and FY24 earnings estimates have now soared 23% and 29% respectively. Fiscal 2023 earnings are now expected to climb 33% and jump another 26% in FY24 at $8.75 per share.
Even better, Salesforce stock is still up +31% year to date to largely outperform the S&P 500’s +2% and the Nasdaq’s +6%.
Sterling Infrastructure (STRL)
Next is Sterling Infrastructure which sports a Zacks Rank #2 (Buy) and also gained some nice momentum after the company recently announced it was awarded a site development project for Hyundai’s EV battery facility.
This is on top of stellar growth in 2022 with earnings estimate revisions continuing to trend higher for fiscal 2023. Sterling’s earnings are now expected to jump 11% in FY23 and climb another 16% in FY24 at $4.07 per share.
Sterling stock is still up +18% year to date to largely outperform the broader indexes and its attractive valuation and stellar performance over the last few years indicate there could be more upside ahead.
Shares of STRL trade at $38 and just 11.6X forward earnings which is nicely below the industry average of 19.9X and the S&P 500’s 17.9X. Plus, Sterling stock trades much more reasonably than its decade high of 298.8X and at a slight discount to the median of 12.6X.
EPR Properties (EPR)
Rounding out the list is EPR Properties which also sports a Zacks Rank #2 (Buy). Many REITs are becoming attractive after the massive selloff among the broader financial sector and EPR’s stock may be worth considering for its attractive valuation, diverse portfolio, and lucrative monthly dividend.
EPR’s properties include megaplex theatres, entertainment retail centers, lodging properties, and early childhood education centers among others.
Trading 33% from its 52-week highs EPR’s valuation is starting to stand out. EPR trades at $37 per share and 8X forward earnings which is nicely beneath the industry average of 12.5X and the benchmark.
EPR also trades 68% below its decade high of 25.2X and at a 40% discount to the median of 13.2X. In addition to this, EPR’s 8.44% dividend yield blows away the REIT and Reality Trust – Retail Markets 4.22% and the S&P 500’s 1.62%.
This should certainly support patient investors and income seekers as shares of EPR are down -9% YTD but are very enticing at their current levels.
Bottom Line
Salesforce, Sterling Infrastructure, and EPR Properties stocks look like strong buy-the-dip candidates following this week’s selloff. There could be plenty of upside ahead for these stocks as volatility subsides and we get back to what hopefully continues to be a rebound year for many equities.
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This week’s selloff was intensified by economic concerns stemming in the financial sector after the collapse of SVB Financial Group’s (SIVB) Silicon Valley Bank.
However, the broader selloff in markets is creating opportunities and here are three stocks that investors should keep an eye on.
Salesforce (CRM)
We’ll start the list with a Zacks Rank #1 (Strong Buy) as Salesforce’s stock is very intriguing at the moment. After crushing its Q4 top and bottom line expectations last week Salesforce stock had been seeing some nice momentum.
The wrench that was thrown at the rally from broader economic concerns may offer investors a better buying opportunity. Furthermore, a small correction can be healthy and offer longer-term support.
Plus, earnings estimate revisions have been trending higher following Salesforce's stellar fourth-quarter results. This should continue to be a catalyst for Salesforce stock after the smoke clears from this week’s market decline.
Throughout the quarter, Salesforce’s fiscal 2023 and FY24 earnings estimates have now soared 23% and 29% respectively. Fiscal 2023 earnings are now expected to climb 33% and jump another 26% in FY24 at $8.75 per share.
Even better, Salesforce stock is still up +31% year to date to largely outperform the S&P 500’s +2% and the Nasdaq’s +6%.
Sterling Infrastructure (STRL)
Next is Sterling Infrastructure which sports a Zacks Rank #2 (Buy) and also gained some nice momentum after the company recently announced it was awarded a site development project for Hyundai’s EV battery facility.
This is on top of stellar growth in 2022 with earnings estimate revisions continuing to trend higher for fiscal 2023. Sterling’s earnings are now expected to jump 11% in FY23 and climb another 16% in FY24 at $4.07 per share.
Sterling stock is still up +18% year to date to largely outperform the broader indexes and its attractive valuation and stellar performance over the last few years indicate there could be more upside ahead.
Shares of STRL trade at $38 and just 11.6X forward earnings which is nicely below the industry average of 19.9X and the S&P 500’s 17.9X. Plus, Sterling stock trades much more reasonably than its decade high of 298.8X and at a slight discount to the median of 12.6X.
EPR Properties (EPR)
Rounding out the list is EPR Properties which also sports a Zacks Rank #2 (Buy). Many REITs are becoming attractive after the massive selloff among the broader financial sector and EPR’s stock may be worth considering for its attractive valuation, diverse portfolio, and lucrative monthly dividend.
EPR’s properties include megaplex theatres, entertainment retail centers, lodging properties, and early childhood education centers among others.
Trading 33% from its 52-week highs EPR’s valuation is starting to stand out. EPR trades at $37 per share and 8X forward earnings which is nicely beneath the industry average of 12.5X and the benchmark.
EPR also trades 68% below its decade high of 25.2X and at a 40% discount to the median of 13.2X. In addition to this, EPR’s 8.44% dividend yield blows away the REIT and Reality Trust – Retail Markets 4.22% and the S&P 500’s 1.62%.
This should certainly support patient investors and income seekers as shares of EPR are down -9% YTD but are very enticing at their current levels.
Bottom Line
Salesforce, Sterling Infrastructure, and EPR Properties stocks look like strong buy-the-dip candidates following this week’s selloff. There could be plenty of upside ahead for these stocks as volatility subsides and we get back to what hopefully continues to be a rebound year for many equities.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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