Among the Zacks Rank #1 (Strong Buy) list, several companies are standing out in terms of their growth and high dividend yields, adding more value to their stocks. This combination tends to excite investors as lucrative payouts are more appealing and fulfilling when a company’s outlook is promising.
That said, here are a few of these highly ranked stocks that currently fit this scenario and should certainly be on investors' radars.
HNI HNI: The Zacks Business Services sector had a strong rebound over the last year and HNI Corporation is a name that led the way with its stock soaring +60% to top the broader indexes. HNI has diverse but dominant business operations as a leading provider of office and workplace furniture along with residential building products.
Most appealing is that HNI shares still trade at a reasonable 14.4X forward earnings multiple with annual earnings forecasted to rise 10% this year and climb another 11% in fiscal 2025 to $3.27 per share. Plus, earnings estimate revisions are nicely up over the last 60 days for both FY24 and FY25.
Of course, the cherry on top is that HNI has a 3.02% annual dividend yield that blows away the business services sector’s 0.77% average and the S&P 500’s 1.32% average.
Consumer Discretionary Standouts
Betterware de Mexico BWMX and Pactiv Evergreen PTVE are two standouts among the consumer discretionary sector that fit the appealing narrative of high growth, high dividend-yielding stocks with their annual payouts over 3% respectively.
Even better, Pactiv Evergreen’s stock has soared +55% over the last year while Betterware de Mexico shares have skyrocketed +77%. Furthermore, their attractive P/E valuations still suggest more upside could be ahead.
Offering diverse exposure to business operations in Mexico, Betterware is a direct-to-consumer selling company that features a broad product portfolio of home organization, kitchen preparation, food containers, smart furniture, technology, and mobility categories. Trading at just 8.9X forward earnings, Betterware’s EPS is forecasted to climb 27% in FY24 and rise another 8% in FY25 to $2.18 per share.
Meanwhile, Illinois-based Pactiv Evergreen's steady bottom line expansion remains attractive as well as a provider of food packaging solutions. PTVE shares trade at an 11.8X forward earnings multiple with double-digit EPS growth forecasted in FY24 and FY25.
Bottom Line
Like HNI Corporation, earnings estimate revisions have trended higher for Betterware de Mexico and Pactiv Evergreen’s fiscal 2024. This makes now an ideal time to buy these highly ranked stocks and each has an overall “A” Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Among the Zacks Rank #1 (Strong Buy) list, several companies are standing out in terms of their growth and high dividend yields, adding more value to their stocks. This combination tends to excite investors as lucrative payouts are more appealing and fulfilling when a company’s outlook is promising.
That said, here are a few of these highly ranked stocks that currently fit this scenario and should certainly be on investors' radars.
HNI HNI: The Zacks Business Services sector had a strong rebound over the last year and HNI Corporation is a name that led the way with its stock soaring +60% to top the broader indexes. HNI has diverse but dominant business operations as a leading provider of office and workplace furniture along with residential building products.
Most appealing is that HNI shares still trade at a reasonable 14.4X forward earnings multiple with annual earnings forecasted to rise 10% this year and climb another 11% in fiscal 2025 to $3.27 per share. Plus, earnings estimate revisions are nicely up over the last 60 days for both FY24 and FY25.
Of course, the cherry on top is that HNI has a 3.02% annual dividend yield that blows away the business services sector’s 0.77% average and the S&P 500’s 1.32% average.
Consumer Discretionary Standouts
Betterware de Mexico BWMX and Pactiv Evergreen PTVE are two standouts among the consumer discretionary sector that fit the appealing narrative of high growth, high dividend-yielding stocks with their annual payouts over 3% respectively.
Even better, Pactiv Evergreen’s stock has soared +55% over the last year while Betterware de Mexico shares have skyrocketed +77%. Furthermore, their attractive P/E valuations still suggest more upside could be ahead.
Offering diverse exposure to business operations in Mexico, Betterware is a direct-to-consumer selling company that features a broad product portfolio of home organization, kitchen preparation, food containers, smart furniture, technology, and mobility categories. Trading at just 8.9X forward earnings, Betterware’s EPS is forecasted to climb 27% in FY24 and rise another 8% in FY25 to $2.18 per share.
Meanwhile, Illinois-based Pactiv Evergreen's steady bottom line expansion remains attractive as well as a provider of food packaging solutions. PTVE shares trade at an 11.8X forward earnings multiple with double-digit EPS growth forecasted in FY24 and FY25.
Bottom Line
Like HNI Corporation, earnings estimate revisions have trended higher for Betterware de Mexico and Pactiv Evergreen’s fiscal 2024. This makes now an ideal time to buy these highly ranked stocks and each has an overall “A” Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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