Even after more than 50% of gains this year, 3 stocks to buy without hesitation


Many stocks have made impressive gains this year as we continue to recover from the peak of the pandemic. In fact, a lot of companies have cumulative performance to date that we’re not used to seeing. It has been a blessing for investors holding these stocks, but it has also been a curse for investors looking for the next big winners.

Common sense of investing would strongly suggest that stocks performing this high this year may experience a drop in performance as the end of the year approaches. However, this is not necessarily the case. With companies largely outperforming earnings estimates in the last quarter, stocks should continue to post gains.

To find these stocks, I often turn to our POWR odds system. Based on 118 different factors, POWR ratings help find stocks with the best chance of outperforming. This is why investors should consider well-rated stocks such as Zebra Technologies Corporation (ZBRA), Signet Jewelers Limited (GIS) and Robert Half International Inc. (ISR), which are all up more than 50% in 2021 and are expected to continue to rally.

Zebra Technologies Corporation (ZBRA)

ZBRA is a leading provider of automatic identification and data capture technologies for businesses. Its solutions include barcode printers and scanners, laptops and workflow optimization software. The company primarily serves the retail, transportation, logistics, manufacturing and healthcare markets, designing customized solutions to improve the efficiency of its customers.

The company, up 52% ​​so far for the year, recently reported strong third quarter results. Both revenue and earnings exceeded analysts’ expectations, with earnings up 39.1% year-over-year due to increased organic sales. ZBRA is expected to continue to benefit from a robust demand environment, beneficial acquisitions and investments in growth.

The company has an overall rating of B, which translates into a purchase rating in our POWR rating system. The company has a sentiment rating of A because it is popular with Wall Street analysts. For example, seven out of eleven analysts have a strong buy or buy rating on the stock. ZBRA also has a quality grade of B due to strong fundamentals.

At the end of the most recent quarter, its cash balance was $ 307 million, which compares favorably to just $ 51 million in short-term debt. We also provide Growth, Value, Dynamics and Stability Ratings for ZBRA, which you can find here. ZBRA is ranked # 10 in the B-classified industrial machinery industry. For more top stocks in this industry, Click here.

Bookmark Jewelers Limited (GIS)

SIG is a diamond jewelry retailer. Its mix of merchandise includes fashion, watches and more. Some of its well-known brands include Kay, Jared, Zales, and Piercing Pagoda. The company also offers a wedding category that includes engagement, wedding and anniversary shopping. Although the company has an international segment, the majority of its revenue comes from North America.

The company, which is up 289% year-to-date, has benefited from the growth in its e-commerce business and the momentum of its Inspiring Brilliance strategy. This strategy focuses on expanding the company’s major banners, increasing its service revenues and expanding its accessible luxury and value segments.

Based on its recent success and expectations for continued business growth, management expects great things in fiscal 2022. SIG has an overall rating of A and a rating of strong buy in our POWR rating system. The company has a Growth Garde of A as analysts expect earnings to grow 20.6% annually over the next five years.

The company also has a Momentum rating of A due to its strong performance in the short, medium and long term. The title is even up 23.6% over the past month. For the rest of the SIG scores (Value, Stability, Sentiment and Quality), Click here. SIG is ranked # 6 in the Fashion and Luxury Industry, Ranked A. For more top stocks in this highly rated industry, be sure to visit this link.

Robert Half International Inc. (ISR)

Founded in 1948, RHI provides temporary, permanent and project-based staff to companies seeking employees in finance, accounting and technology. In fact, it is one of the largest recruiting companies in the world, operating in hundreds of locations in multiple countries. In addition, its subsidiary Protiviti provides risk and business advisory and internal audit services to companies through global offices.

RHI recently reported strong third quarter results. The company, which gained more than 89% for the year, outperformed both earnings and sales estimates. Profits have grown over 100% year over year, while revenue has increased 44% year over year. The company benefited from strong demand for labor and from its subsidiary Protiviti, which offers double-digit margins.

The company has an overall rating of A, which translates into a strong buy rating in our POWR rating system. RHI has an A quality rating, which is not surprising with a rock solid balance sheet. The company has a current ratio and a quick ratio of 1.7, which indicates that it has enough liquidity to handle any short-term debt.

Its debt-to-equity ratio of 0.2 and return on equity of 39.9% are also encouraging. To access all of RHI’s ratings, such as Growth, Value, Momentum, Stability and Sentiment, Click here. RHI is ranked # 3 in the Staffing Services Outsourcing industry. To see more top-ranked stocks in this leading industry, visit this connect.

Discover the most profitable stocks today

This article was written by David Cohne, chief value strategist for StockNews.com. David has been helping investors find the most profitable stocks for over 20 years.

If you’d like to see more of his best value stock ideas, click the link below.

See David Cohne’s Favorite Value Stocks

ZBRA shares remained unchanged on Thursday after hours. Year-to-date, ZBRA has gained 52.23%, compared to a 25.26% increase in the benchmark S&P 500 over the same period.

About the Author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. He is the chief value strategist for StockNews.com and the publisher of the POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing research and content on outsourced investing to financial services firms, hedge funds and online publications. David enjoys researching and writing about stocks and markets. It takes a fundamental quantitative approach in evaluating stocks for readers. Following…

More resources for actions in this article


Comments are closed.