All stocks with a Zacks Strong Buy Rank (#1) have near-term potential for upside. But when the markets are very hot and the risk of a slower-then-expected turnaround is a reality given the disappointing employment level, renewed infections and a return to selective lockdowns in some regions, you can never be too cautious. One of the things we need to do in this situation is diversify our holdings. Yes, we should be in the attractive sectors, but if there is value in a beaten down sector, we shouldn’t have a problem dipping into it. Second, growth is risky when it’s at a very high valuation. So unless you’re very sure about the growth potential, it’s best to avoid going there. Much better to stick to the really safe bets, as I’m doing here- Jabil, Inc. ( JBL Quick Quote JBL - Free Report) Jabil offers electronic manufacturing services (EMS), including electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries; and Diversified Manufacturing Services (DMS), including engineering solutions, material sciences and other technologies to customers in the consumer lifestyle, healthcare, mobility and packaging industries. It’s a roughly 50-50 split between the high-volume and low-margin EMS and high-margin DMS segments. Jabil’s strong results come from the ongoing strength in its end markets, as well as a solid client roster that includes the likes of Apple, Cisco and Hewlett-Packard Company, to name a few. In its fiscal first quarter ending in December, the company raised its forecast for the year. The shares carry a Zacks Rank #1 (Strong Buy) and VGM Score A, both of which indicate that they are very attractive for just about any investor. The fact that they also belong to the Electronics - Manufacturing Services industry, which is in the top 6% of Zacks-classified industries is a bonus. As you likely are aware, about half a stock’s upside is related to the group that it’s in. Besides, the top 50% of Zacks-classified industries have historically outperformed the bottom 50% by a factor of more than 2 to 1. In the last 30 days, the company’s 2021 (ending August) and 2022 estimates have increased 59 cents (14.6%) and 53 cents (12.0%), respectively. Trading at 9.41X forward 12 months’ earnings, the shares are valued below their median level over the past year. So there is significant room for upside. Boise Cascade, L.L.C. ( BCC Quick Quote BCC - Free Report) Boise Cascade manufactures engineered wood products, plywood, lumber and particleboard and distributes wood products, such as decking, EWP, lumber, panel, particleboard and MDF products. It has operations primarily in the United States and Canada. The strength in the construction market and ongoing housing boom that was driven by the pandemic as well as millennials is expected to continue this year. And since these comprise the company’s primary served markets, it continues to enjoy strong momentum. The shares carry a Zacks Rank #1 and VGM Score A. They are also in the Building Products – Wood industry, which places them in the top 6% of Zacks-classified industries. Therefore there is strong possibility of upside potential. Over the last 60 days, the 2020 estimate went from $5.12 to $5.09, then back up to $5.35 7 days ago and is currently at $5.60. So there is clearly some positive news building up. During the same time period, the 2021 estimate went from $3.08 to $3.75, confirming the growth potential. Additionally, at 13.39X forward earnings, the shares are trading below their median value over the past year and therefore look very attractively valued. Mueller Industries, Inc. ( MLI Quick Quote MLI - Free Report) Mueller is a leading manufacturer of things like copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products that are mainly used during construction of new home and repair of existing ones. They also have application in commercial construction markets like office buildings, factories, hotels and restaurants. The company operates mainly in the U.S., but also in Canada, Mexico, Great Britain, and China. So it stands to reason that Mueller is also a beneficiary of the current momentum in construction markets. The shares carry a Zacks Rank #1 and VGM Score A, so all ibvestors, irrespective of their risk appetite would benefit from buying them. Moreover, they belong to the Leisure and Recreation Products industry, Metal Products - Procurement and Fabrication industry, which is the top 24% of Zacks-classified industries. Seven days ago, the sole analyst providing estimates on the company’s 2020 performance raised his estimate from a loss of 12 cents to a profit of $2.12 the 2021 estimate went from $1.00 to $2.48. The shares are currently valued at 15.42X forward earnings, which is below their median value of 17.04X over the past year. So there appears to be significant upside potential here. Smith & Wesson Brands, Inc. ( SWBI Quick Quote SWBI - Free Report) Smith & Wesson is a well-known designer, manufacturer and seller of firearms. Its product range spans pistols, revolvers, rifles, handcuffs and other related products and accessories under the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms and Gemtech brands. Demand for firearms was robust in the last quarter, which management attributed to a strong market as well as customer preference for its innovative products. As a result, the company reported strong growth and also gained market share. The Outdoor segment, catering to hunting and shooting hobbies, was understandably impacted by the pandemic, as well as increased tariffs. But the new digital sales platform was an offsetting factor. This segment is being expanded to include many new categories, including meat processing. This business is expected to be spun off as a tax-free distribution to shareholders by August. The shares carry a Zacks Rank #1 and VGM Score A, which means that investors could make near-term gains from buying them. That is particularly true because they also belong to the Leisure and Recreation Products industry, which is in the top 9% of Zacks-classified industries. The 2021 estimate (ending April) jumped 83 cents (34.0%) 30 days ago while the 2022 estimate jumped 59 cents (51.8%), so there’s clearly a long runway for growth. At 9.65X forward earnings, the shares are trading below their median level over the past year, suggesting undervaluation. B&G Foods, Inc. ( BGS Quick Quote BGS - Free Report) B&G Foods, along with its subsidiaries, manufactures, sells and distributes high quality, shelf stable, frozen food and household products under 50+brands, many of which have leading regional or national market shares. In addition to selling branded and private label products at retail, BGS sells to institutions and the foodservice segment across the U.S., Canada and Puerto Rico. The company benefited from the work from home trend in the last few quarters, as people were cooking at home more often. While the vaccine is expected to open up many segments of the market before long, the company will continue to grow in the interim. Besides, the new normal will remain for many, as infrastructure set up to enable working from home won’t be immediately eliminated. Therefore, it is currently expected to continue growing this year, albeit at a much slower pace. The shares carry a Zacks Rank #1 and VGM Score A, meaning that there are strong near-term signals to buy, although its inclusion in the Food – Miscellaneous industry, which is in the bottom 31% of Zacks-classified industries is a bit disappointing. Still, these are some of the places where you might be able to pick up some value given the current overheated condition of the market. The 2020 estimate remains relatively steady over the last 60 days, while the 2021 estimate jumped 16 cents (7.1%). The shares are valued at 11.30X forward earnings, which is below the 11.64 median level over the past year. So they are undervalued. 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