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3 Soaring Top-Ranked Stocks to Buy for More Upside

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Today’s episode of Full Court Finance at Zacks explores the tug-of-war going on between the bulls and the bears in the early days of March. Stocks surged again through mid-afternoon trading on Friday to help the S&P 500 retake a key moving average once again. Given this bullish backdrop, we dive into three top-ranked Zacks stocks—O-I Glass, Airbnb, Las Vegas Sands—that have all soared in 2023 and look to have plenty of long-term upside left.

The fight for control of the market has been influx over the last few weeks, and really since early February as more hot economic data rolled in. Thursday’s pop and Friday’s jump appeared to follow comments from Atlanta Fed President Raphael Bostic where he voiced his support for raising interest rates at 0.25% increments. Wall Street liked to hear that the Fed likely will not resort to hiking by 50 basis points or more again to try to trample lingering inflation.

Zacks Investment Research
Image Source: Zacks Investment Research

Many of the same unknowns remain in place such as what to expect from February CPI data, as well as Q1 2023 earnings results and guidance. Despite the recent pop, the 2-year U.S. Treasury yield sat near fresh highs at 4.87% on Friday afternoon, up from 4.1% on February 1 and back to 2007 and 2006 levels. It is worth remembering, though, that these are low by historical standards and Wall Street continued to buy understanding full well where rates sit.

The Nasdaq is back well above its 200-day moving average once again to give the bulls some breathing room. Plus, the S&P 500’s recent rebound has it back above its 50-day and the bulls did not even let it test the 200-day.

Investors who do not want to miss out on this rally should not blindly dive into any recently surging stocks. Today we used the Zacks Rank to find companies that raised their earnings guidance in the face of a slowing economy. All of these stocks have also seen their valuations improve even as they soared to start 2023.

Zacks Investment Research
Image Source: Zacks Investment Research

O-I Glass, Inc. ((OI - Free Report) ) is one of the top producers of glass bottles and jars in the U.S. and around the world. O-I Glass works with some of the leading food and beverage brands on the planet. O-I Glass is in the midst of revamping some of its business operations to help unlock shareholder value over the next several years.

O-I Glass is coming off a strong year and it provided upbeat guidance to help it land a Zacks Rank #1 (Strong Buy) right now. Its Glass Products industry is in the top 14% of over 250 Zacks industries, and OI has jumped 40% in 2023 as part of a 90% run during the last year. Yet it still trades 11% below its average Zacks price target and at a nearly 50% discount to its industry at 9X forward earnings.

Airbnb, Inc. ((ABNB - Free Report) ), which went public in late 2020, is on a massive 45% run to start 2023 as the post-covid travel rebound proves it has serious legs. Airbnb posted its first annual profit in 2022 and topped our Q4 estimates in mid-February. Its FY22 revenue soared 40% on top of 77% expansion in 2021, with more double-digit growth projected in both FY23 and FY24.

Airbnb’s upward EPS revisions help it land a Zacks Rank #1 (Strong Buy) right now. ABNB’s adjusted earnings are projected to climb by roughly 20% in 2023 and 2024. The stock is up 10% in the last 6 months vs. tech’s sideways movement and despite its rally, the stock still trades 40% below its peaks. Airbnb has a solid balance sheet and it is successfully shaking up a massive global industry.

Las Vegas Sands Corp. ((LVS - Free Report) ) used to be a Vegas giant. Now it is focused on Singapore and Macau, with a portfolio that includes Marina Bay Sands in Singapore and The Venetian Macao, The Plaza and Four Seasons Hotel Macao, The Londoner Macao, and others. The company is projected to post 108% revenue growth in FY23 as the Chinese economy starts its great reopening to help its earnings soar.

Las Vegas Sands is projected to follow up its massive 2023 with strong double-digit sales and earnings expansion next year. LVS lands a Zacks Rank #1 (Strong Buy) and its Gaming space is in the top 30% of over 250 Zacks industries. LVS shares have soared roughly 70% in the past six months yet they are currently trading 10% below their average Zacks price target. 

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