Investors hunting for undervalued stocks that have the potential to deliver substantial gains often find themselves on a quest akin to discovering hidden treasures awaiting recognition. After all, who doesn’t relish stumbling upon a bargain?
For those seeking stocks with attractive valuations, The Greenbrier Companies (GBX), Stride (LRN), and Enersys (ENS) present intriguing opportunities.
Opportunities in The Greenbrier Companies
The Greenbrier Companies is a prime provider of transportation equipment and services to the railroad and related industries. With a Zacks Rank of #1 (Strong Buy), the stock has seen a remarkable 41% surge in revisions trend for its current fiscal year over the past year.
The company’s shares currently trade at a 0.4X forward price-to-sales ratio, well below the five-year highs of 0.9X in 2021. The forward earnings multiple stands at 13.2X, aligning with the five-year median and below the 2022 highs of 22.4X.
Growth Potential of Stride
Stride, an education services company offering virtual and blended learning, is anticipating a 35% growth in earnings and a 9% increase in sales for the current year. As a Zacks Rank #1 (Strong Buy) stock, it has experienced positive revisions across the board.
The company recently posted outstanding results, surpassing the consensus EPS estimate by over 120% and achieving a sales beat of 5%. Earnings soared from a year-ago loss of -$0.54 per share, with a 13% year-over-year revenue boost, marking a quarterly record.
Potential in Enersys
Enersys engages in the manufacturing, marketing, and distribution of various industrial batteries worldwide. With a Zacks Rank #1 (Strong Buy), the company is expecting a substantial 54% year-over-year improvement in earnings for its current fiscal year (FY24).
While the top line is projected to experience a slight pullback of 1% in FY24, the current forward earnings multiple of 12.0X is notably below the five-year median and the highs of 22.9X recorded in 2021. The forward price-to-sales ratio also remains favorable, in line with the five-year median and below the 2021 highs.
The Value Investment Proposition
Value investors are always on the lookout for opportunities, anticipating that others will eventually recognize the discounts. When combined with the Zacks Rank, which focuses on earnings estimate revisions, identifying undervalued stocks with strong short-term potential becomes notably simpler.
For value-conscious investors weighing their options, The Greenbrier Companies (GBX), Stride (LRN), and Enersys (ENS) are all worth considering.
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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Enersys (ENS) : Free Stock Analysis Report
Stride, Inc. (LRN) : Free Stock Analysis Report
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Views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
