HomeMost PopularTech Stocks Three Affordable Zacks Rank #1 (Strong Buy) Stocks to... Three Affordable Zacks Rank #1 (Strong Buy) Stocks to Watch By Ron Finklestien January 11, 2024 Today's Market Recap Daily Market Recaps (no fluff) always free Table of Contents hide 1 Arcos Dorados (ARCO) 2 Carrols Restaurant Group (TAST) 3 Virco Manufacturing (VIRC) 4 Zacks Top-Ranked Stocks in the Retail-Restaurant Industry </noscript><iframe class="lazy" allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="" data-src="https://www.youtube.com/watch?v=bnJ_t5igtgs" width="560"> In a market where share prices are sky high, finding affordable stocks with fundamental value can feel like stumbling upon a hidden treasure. Despite the soaring markets, a few Zacks Rank #1 (Strong Buy) stocks stand out due to their affordability, value, and encouraging growth prospects. Moreover, these companies, despite being affordable, are well-positioned to seize a larger market share, and their risk-to-reward ratio looks remarkably favorable. Not only do these stocks hold a Zacks Rank #1 (Strong Buy) but they also boast an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum. Hailing from the Zacks Retail and Wholesale sector, and the Zacks Consumer Discretionary sector, let’s dive into these promising yet affordable stocks. Image Source: Zacks Investment Research Arcos Dorados (ARCO) Flying under the radar, Arcos Dorados has shown impressive performance, with its stock up +41% over the past year, yet still 8% below its 52-week high of $13 a share in late December. As the largest franchisee of McDonald’s (MCD) restaurants globally, Arcos operates these beloved burger joints across Latin America. With over 2,000 McDonald’s branded restaurants, Arcos has a substantial presence in South American countries including Brazil, the Caribbean, and Mexico. Currently trading at 12.7X forward earnings, Arcos is expected to close out fiscal 2023 with its EPS soaring 19% to $0.82 per share, compared to $0.69 per share in 2022. Notably, analysts project a further 15% increase in FY24 earnings to $0.95 per share. Moreover, earnings estimate revisions have consistently trended upward over the last 60 days for both FY23 and FY24. Image Source: Zacks Investment Research Arcos also boasts a price-to-sales ratio (P/S) of just 0.61X, with double-digit top-line growth projected. Total sales are expected to surge by 19% in FY23 and further increase by 10% in FY24, reaching $4.75 billion. See also Top Value Stocks to Consider Investing in for October 11thImage Source: Zacks Investment Research Carrols Restaurant Group (TAST) As the largest franchisee of Burger King, Carrols Restaurant Group presents an attractive option, with a compelling trend of earnings estimate revisions over the last 60 days. Operating close to 1,000 Burger King restaurants across the United States, and over 60 Popeyes restaurants, Carrols’ stock emerged as one of the standout performers in 2023, with a staggering 300% surge over the past year to approximately $8 per share. Image Source: Zacks Investment Research Concluding FY23, earnings estimates have risen by 16% in the last two months, while FY24 EPS estimates have skyrocketed by 24%. Annual earnings are anticipated to shift to $0.49 per share from an adjusted loss of -$0.70 per share in 2022. Fiscal 2024 is forecasted to see a further 14% increase in earnings to $0.56 per share, and Carrols’ stock still trades at a reasonable 14.7X forward earnings multiple. Image Source: Zacks Investment Research Trading at just 0.23X sales, Carrols’ top line is thought to have expanded 8% in FY23 and is expected to rise another 4% this year to $1.94 billion. Image Source: Zacks Investment Research Virco Manufacturing (VIRC) Lastly, Virco Manufacturing, which designs, produces, and distributes quality furniture for the contract and education markets worldwide, trades around $12 a share. The company has witnessed a 20% and 17% surge in FY24 and FY25 earnings estimates, respectively, over the last 60 days. Image Source: Zacks Investment Research Having witnessed a soaring +151% over the last year, Virco’s stock still trades at just 8.9X forward earnings. Aligning with its stellar performance, Virco’s EPS is set to expand by 32% this year and soar by another 27% in FY25 to $1.72 per share. Furthermore, Virco’s Do you want a daily market summary with no fluff? Simple Straightforward Daily Stock Market Recaps Sent for free,every single trading day: Read Now TagsTechnology Explore More “Revealed: 3 High-Growth AI Companies Transforming into... Introducing the Cutting-Edge AI Stock Promising 20x... “Exploring Super Micro Computer: A Potential Goldmine... Is Investing in SoundHound AI Today the... Simple Straightforward Daily Stock Market Recaps Get institutional-level analysis to take your trading to the next level, sign up for free and become apart of the community. Read Now Related Articles Tech Stocks “Tech Triumphs and Trials: Nobel Awards AI Breakthroughs, While Tesla’s Autonomy... October 12, 2024 Tech Stocks Top Income Stocks to Consider Purchasing on October 11th October 12, 2024 Tech Stocks Top Value Stocks to Consider Investing in for October 11th October 12, 2024 Tech Stocks Top Growth Stocks to Consider for October 11th Investments October 11, 2024
