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Top Stock Picks for Week of January 23, 2023

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Toast Inc. (TOST - Free Report) builds software which helps restaurants manage online orders and dine-in order, operate an on-demand delivery network and integrate payments. There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5.6%, as one estimate has moved higher compared to no negative revision. Moreover, TOST currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates.

American Airlines Group Inc. (AAL - Free Report) was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. Improved air-travel demand, particularly on the domestic front, is aiding American Airlines. Owing to upbeat air-travel demand, Operating revenues in third-quarter 2022 increased 50.1% year over year. Buoyant air-travel demand is also reflected by the total operating revenue increase of 13% from the third-quarter 2019 (pre-coronavirus) levels despite 9.6% lower capacity. Driven by soaring demand on healthy bookings, management expects total revenues in the fourth quarter of 2022 to be roughly 11-13% higher than the level recorded in fourth-quarter 2019. The carrier's debt-reduction efforts are impressive as well. AAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. American Airlines will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. 


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