3 high-ranking stocks with excellent growth prospects

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The performance of the market has been outstanding lately. After a rocky start in the first half, investors undoubtedly welcomed the rally with open arms. The ongoing war in Ukraine, rising costs and a hawkish Fed were all part of the dark fiscal cloud hanging over us.

With the reappearance of buyers, some high-ranking stocks with excellent growth prospects could take off, including Titan International TWI, Taiwan Semiconductor Manufacturing TSM and The Chefs’ Warehouse CHEF.

Below is a year-to-date chart of all three companies, using the S&P 500 as the benchmark.

Image source: Zacks Investment Research

All three companies hold the coveted Zacks Rank #1 (Strong Buy). Let’s take a closer look at each company’s growth prospects and some other aspects.

Taiwan semiconductor manufacturing

Taiwan Semiconductor Manufacturing TSM, the world’s largest circuit foundry, is responsible for supplying microchips worldwide to an elite list of companies including Nvidia NVDA and Advanced Micro Devices AMD.

The company has excellent growth prospects and analysts have been bullish on all periods for the last 60 days.

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Image source: Zacks Investment Research

TSM is forecast to generate a whopping $78 billion in revenue in FY22, up a solid 37% year over year. And in FY23, revenue is expected to grow another 15%. Below is a chart showing the company’s revenue on an annual basis.

Zacks Investment Research
Image source: Zacks Investment Research

The bottom line predictions are also rock solid; The Zacks Consensus EPS estimate of $6.30 for FY22 reflects a massive 53% year-over-year profit increase. Additionally, the bottom line appears to be up a respectable 3.5% in FY23.

TSM’s valuation levels are also enticing. Its 14.2x earnings multiple is nowhere near its five-year median of 19.9x and represents a steep 42% discount compared to its Zacks sector.

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Image source: Zacks Investment Research

Titan International

Titan International TWI manufactures a wide range of products worldwide to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agriculture, earthmoving/construction and consumer markets.

Analysts have significantly raised their earnings outlook across all timeframes.

Zacks Investment Research
Image source: Zacks Investment Research

The revenue growth projections are notable — Titan’s full-year revenue is expected to grow to $2.2 billion in FY22, a substantial 24% increase year over year. In FY23, the company’s sales are expected to contribute an additional 4% to growth.

Below is a chart showing the company’s revenue on an annual basis.

Zacks Investment Research
Image source: Zacks Investment Research

For the current fiscal year, the company’s earnings are expected to skyrocket — the Zacks Consensus EPS estimate of $2.19 represents a staggering triple-digit increase of 157% year over year. And in FY23, the bottom line is expected to rise another 5.3%.

In addition to inspiring growth prospects, the company also boasts solid valuation levels. Titan’s 0.4x forward P/E is on the low side, representing a deep discount of 81% compared to its Zacks sector.

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Image source: Zacks Investment Research

The cooks camp

The Chefs’ Warehouse CHEF is a specialty food distributor in the United States focused on meeting the specific needs of chefs who own and/or operate restaurants, fine dining restaurants, country clubs, hotels, caterers, culinary schools and specialty kitchen shops.

Like TSM and TWI, analysts have significantly upgraded their earnings outlook across all timeframes.

Zacks Investment Research
Image source: Zacks Investment Research

Note that the Zacks Consensus FY22 EPS estimate of $1.36 reflects a mind-blowing 2,820% year-over-year increase in earnings. For the next financial year, a further 16% increase in profit in the double-digit range is forecast.

Of course, the growth doesn’t stop there — CHEF is forecast to post a strong $2.5 billion in full-year revenue for fiscal 22, which is good enough for a solid 40% year-over-year increase. And in FY23, revenue guidance of $2.7 billion translates into another 10% increase.

Zacks Investment Research
Image source: Zacks Investment Research

CHEF’s forward price-to-sales ratio is 0.5X, just below its five-year median of 0.6X. Still, the value represents a deep discount of 93% compared to its Zacks sector. Additionally, the company has a style score of B for value.

Zacks Investment Research
Image source: Zacks Investment Research

bottom line

The recovery in the market has been remarkable lately. After a brutal start to the year, we’re finally seeing some consistent green, and investors are excited.

Of course, at a time when markets are raging, investors want strong stocks in their portfolios. All three of the above companies have a Zacks #1 rank (Strong Buy) and have rock-solid growth prospects, making them perfect for investors aiming for growth.

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Advanced Micro Devices, Inc. (AMD): Free Stock Research Report

NVIDIA Corporation (NVDA): Free Stock Research Report

Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report

Titan International, Inc. (TWI): Free Stock Research Report

The Chefs’ Warehouse, Inc. (CHEF): Free Stock Research Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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