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3 Highly-Ranked Stocks With Stellar Projected Growth
It’s undoubtedly been a rough year to be an investor so far. A challenging macroeconomic backdrop has caused widespread margin compression, leaving stocks to tumble.
However, the general market’s performance over the last month is a major positive, signaling that bears could be tiring out.
The chart below illustrates the S&P 500’s performance over the last month.
Now that we’re finally seeing some buyers return, it’s beneficial for investors to carry strong stocks with robust growth projections.
Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products, Taiwan Semiconductor Manufacturing, and Kronos Worldwide.
The chart below illustrates the share performance of all three companies over the last year while blending in the S&P 500 as a benchmark.
Let’s get into why these companies would be solid bets moving forward.
Quanex Building Products
Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
Analysts have been raising their earnings outlook across nearly all timeframes, helping push the company into the highly-coveted Zacks Rank #1 (Strong Buy).
The company’s projected top and bottom-line growth rates are stellar.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $2.35, penciling in a sizable double-digit 35% expansion in the bottom-line year-over-year.
Projected top-line growth is also rock-solid; Quanex Building Products is projected to generate $1.2 billion in sales in FY22, good enough for an 11% uptick in annual revenue from FY21.
The chart below illustrates the company’s revenue on a quarterly basis.
In addition, NX sports enticing valuation metrics, bolstered by its Style Score of an A for Value. Its 10.3X forward earnings multiple is well below its five-year median of 18.6X and represents an attractive 42% discount relative to the S&P 500.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple, Nvidia, and Advanced Micro Devices.
Analysts have been bullish across all timeframes over the last 60 days, landing the company into a Zacks Rank #1 (Strong Buy).
Top and bottom-line forecasts allude to serious growth.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $6.30, notching a stellar 53% expansion of the bottom-line year-over-year.
The growth doesn’t stop there – TSM is forecasted to generate a mighty $77.8 billion in revenue in FY22, good enough for a 37% double-digit uptick from FY21 sales of $56.8 billion.
Additionally, TSM sports an enticing 13.4X forward earnings multiple, nowhere near its five-year median of 19.9X and representing a substantial 24% discount relative to the general market.
Kronos Worldwide
Kronos Worldwide is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness, and opacity. The company is a Zacks Rank #2 (Buy).
Kronos has been on a nice earnings streak, exceeding the Zacks Consensus EPS Estimate by an average of 24% over the last four quarters and recording an impressive 78% bottom-line beat in its latest earnings release.
In addition, KRO is forecasted to grow at a breakneck pace.
For the current fiscal year, the Zacks Consensus EPS Estimate resides at $2.06, displaying a jaw-dropping triple-digit growth in earnings year-over-year of more than 110%.
Top-line growth is also remarkable; Kronos is projected to generate $2.3 billion in revenue for the current fiscal year (FY22), penciling in a rock-solid 16% increase in annual sales year-over-year.
KRO’s Style Score of an A for Value indicates that shares could be undervalued.
The company’s forward earnings multiple sits enticingly at 8.4X, a fraction of its five-year median value of 14.2X. In addition, shares trade at a steep 52% discount relative to the general market.
Bottom Line
The rebound is long overdue, with buyers returning and pushing bears back into hibernation. As we continue to navigate the rough economic waters we’ve found ourselves in, market participants are hopeful this recent strength can continue.
Of course, you want to have strong stocks in your portfolio.
All three stocks above have stellar projected growth rates, strong Zacks Ranks, and enticing valuation levels, making them attractive to any investor.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Quanex, Taiwan Semiconductor, Kronos, Apple, Nvidia and Advanced Micro Devices
For Immediate Release
Chicago, IL – July 28, 2022 – Today, Zacks Investment Ideas feature highlights Quanex Building Products (NX - Free Report) , Taiwan Semiconductor Manufacturing (TSM - Free Report) , Kronos Worldwide (KRO - Free Report) , Apple (AAPL - Free Report) , Nvidia (NVDA - Free Report) , and Advanced Micro Devices (AMD - Free Report) .
3 Highly-Ranked Stocks With Stellar Projected Growth
It’s undoubtedly been a rough year to be an investor so far. A challenging macroeconomic backdrop has caused widespread margin compression, leaving stocks to tumble.
However, the general market’s performance over the last month is a major positive, signaling that bears could be tiring out.
The chart below illustrates the S&P 500’s performance over the last month.
Now that we’re finally seeing some buyers return, it’s beneficial for investors to carry strong stocks with robust growth projections.
Three highly-ranked stocks with promising bottom and top-line growth forecasts include Quanex Building Products, Taiwan Semiconductor Manufacturing, and Kronos Worldwide.
The chart below illustrates the share performance of all three companies over the last year while blending in the S&P 500 as a benchmark.
Let’s get into why these companies would be solid bets moving forward.
Quanex Building Products
Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
Analysts have been raising their earnings outlook across nearly all timeframes, helping push the company into the highly-coveted Zacks Rank #1 (Strong Buy).
The company’s projected top and bottom-line growth rates are stellar.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $2.35, penciling in a sizable double-digit 35% expansion in the bottom-line year-over-year.
Projected top-line growth is also rock-solid; Quanex Building Products is projected to generate $1.2 billion in sales in FY22, good enough for an 11% uptick in annual revenue from FY21.
The chart below illustrates the company’s revenue on a quarterly basis.
In addition, NX sports enticing valuation metrics, bolstered by its Style Score of an A for Value. Its 10.3X forward earnings multiple is well below its five-year median of 18.6X and represents an attractive 42% discount relative to the S&P 500.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry responsible for supplying microchips to an elite list of companies, including Apple, Nvidia, and Advanced Micro Devices.
Analysts have been bullish across all timeframes over the last 60 days, landing the company into a Zacks Rank #1 (Strong Buy).
Top and bottom-line forecasts allude to serious growth.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $6.30, notching a stellar 53% expansion of the bottom-line year-over-year.
The growth doesn’t stop there – TSM is forecasted to generate a mighty $77.8 billion in revenue in FY22, good enough for a 37% double-digit uptick from FY21 sales of $56.8 billion.
Additionally, TSM sports an enticing 13.4X forward earnings multiple, nowhere near its five-year median of 19.9X and representing a substantial 24% discount relative to the general market.
Kronos Worldwide
Kronos Worldwide is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness, and opacity. The company is a Zacks Rank #2 (Buy).
Kronos has been on a nice earnings streak, exceeding the Zacks Consensus EPS Estimate by an average of 24% over the last four quarters and recording an impressive 78% bottom-line beat in its latest earnings release.
In addition, KRO is forecasted to grow at a breakneck pace.
For the current fiscal year, the Zacks Consensus EPS Estimate resides at $2.06, displaying a jaw-dropping triple-digit growth in earnings year-over-year of more than 110%.
Top-line growth is also remarkable; Kronos is projected to generate $2.3 billion in revenue for the current fiscal year (FY22), penciling in a rock-solid 16% increase in annual sales year-over-year.
KRO’s Style Score of an A for Value indicates that shares could be undervalued.
The company’s forward earnings multiple sits enticingly at 8.4X, a fraction of its five-year median value of 14.2X. In addition, shares trade at a steep 52% discount relative to the general market.
Bottom Line
The rebound is long overdue, with buyers returning and pushing bears back into hibernation. As we continue to navigate the rough economic waters we’ve found ourselves in, market participants are hopeful this recent strength can continue.
Of course, you want to have strong stocks in your portfolio.
All three stocks above have stellar projected growth rates, strong Zacks Ranks, and enticing valuation levels, making them attractive to any investor.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.