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Time to Buy These Intriguing Additions to Zacks Rank #1 (Strong Buy) List
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Market sentiment has remained higher in correlation with easing inflation and the Fed’s more dovish outlook with more and more stocks starting to participate in the broader rally.
Notably, several intriguing stocks were recently added to the Zacks Rank #1 (Strong Buy) list this week and shouldn’t be overlooked as we round out what has been an exciting year for the stock market.
Beacon Roofing Supply’s stock is compelling at the moment as the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada.
Standing out in terms of growth and value, Beacon’s annual earnings are now forecasted to rise 9% in fiscal 2023 and jump another 7% in FY24 to $8.03 per share. More astonishing, FY24 EPS projections would represent 232% growth over the last five years with earnings at $2.42 a share in 2020. In correlation with such expansive growth Beacon’s stock has soared +67% this year but still trades at a very reasonable 11.5X forward earnings multiple.
Standing out in terms of value, Embecta is an intriguing medical stock to consider at year’s end. As a pure-play diabetes care company, Embecta’s stock appears to be on the cusp of oversold territory down -27% in 2023 to current levels of around $18 a share.
Embecta is facing a very tough fiscal year to follow but is starting to make the case for being undervalued as annual earnings are now forecasted to dip -32% to $2.04 a share in its current FY24 but rebound and rise 12% in FY25 to $2.29 per share. Plus, earnings estimate revisions for FY24 and FY25 have remained modestly higher over the last 60 days offering further support to the company’s cheap P/E valuation at just 8.7X forward earnings.
Trading at 10.5X forward earnings rising EPS estimates make Western Midstream Partners stock attractive as a limited partnership (LP) formed to own and operate midstream energy assets.
Image Source: Zacks Investment Research
Western Midscream’s stock is up a modest +4% YTD and now looks like an ideal time to buy with earnings projected to dip -12% this year but rebound and climb 25% to $3.31 per share in FY24. More luring is that Western Midstream offers an 8.23% annual dividend yield which it has increased 12 times in the last five years and towers over the S&P 500’s 1.38% average and its Zacks industry average of 4.66%.
Image Source: Zacks Investment Research
Takeaway
These new additions to the Zacks Rank #1 (Strong Buy) list are starting to offer nice value to investors at their current levels. To that point, Beacon Roofing Supply, Embecta, and Western Midstream Partners’ stock looked poised to move higher in December and should be meaningful investments in 2024.
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Time to Buy These Intriguing Additions to Zacks Rank #1 (Strong Buy) List
Market sentiment has remained higher in correlation with easing inflation and the Fed’s more dovish outlook with more and more stocks starting to participate in the broader rally.
Notably, several intriguing stocks were recently added to the Zacks Rank #1 (Strong Buy) list this week and shouldn’t be overlooked as we round out what has been an exciting year for the stock market.
Beacon Roofing Supply (BECN - Free Report)
Beacon Roofing Supply’s stock is compelling at the moment as the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada.
Standing out in terms of growth and value, Beacon’s annual earnings are now forecasted to rise 9% in fiscal 2023 and jump another 7% in FY24 to $8.03 per share. More astonishing, FY24 EPS projections would represent 232% growth over the last five years with earnings at $2.42 a share in 2020. In correlation with such expansive growth Beacon’s stock has soared +67% this year but still trades at a very reasonable 11.5X forward earnings multiple.
Image Source: Zacks Investment Research
Embecta Corp (EMBC - Free Report)
Standing out in terms of value, Embecta is an intriguing medical stock to consider at year’s end. As a pure-play diabetes care company, Embecta’s stock appears to be on the cusp of oversold territory down -27% in 2023 to current levels of around $18 a share.
Embecta is facing a very tough fiscal year to follow but is starting to make the case for being undervalued as annual earnings are now forecasted to dip -32% to $2.04 a share in its current FY24 but rebound and rise 12% in FY25 to $2.29 per share. Plus, earnings estimate revisions for FY24 and FY25 have remained modestly higher over the last 60 days offering further support to the company’s cheap P/E valuation at just 8.7X forward earnings.
Image Source: Zacks Investment Research
Western Midstream Partners (WES - Free Report)
Trading at 10.5X forward earnings rising EPS estimates make Western Midstream Partners stock attractive as a limited partnership (LP) formed to own and operate midstream energy assets.
Image Source: Zacks Investment Research
Western Midscream’s stock is up a modest +4% YTD and now looks like an ideal time to buy with earnings projected to dip -12% this year but rebound and climb 25% to $3.31 per share in FY24. More luring is that Western Midstream offers an 8.23% annual dividend yield which it has increased 12 times in the last five years and towers over the S&P 500’s 1.38% average and its Zacks industry average of 4.66%.
Image Source: Zacks Investment Research
Takeaway
These new additions to the Zacks Rank #1 (Strong Buy) list are starting to offer nice value to investors at their current levels. To that point, Beacon Roofing Supply, Embecta, and Western Midstream Partners’ stock looked poised to move higher in December and should be meaningful investments in 2024.