March came and went in a flurry of volatile investor sentiment, and now we step into April’s somehow more bullish terrain. The previous few months’ market successes still linger in the air and projections of a continued bullish trend persist, painting a favorable backdrop for investors seeking to position themselves strategically as we move into Q2, 2024: finding opportunities in robust companies whose shares are still undervalued.
These 5 stocks are our top Pro Picks for this month, taken from S&P 500-listed companies that have garnered high InvestingPro health ratings (benchmarked against more than 100 financial factors and indicators from companies in the same sector), as well as from among those trading well under our proprietary fair value estimates (based on 5 overlaid investing models) and analyst assessments.
All of these names have earned InvestingPro health scores of well above 3.00, which for the last 7 years has indicated outperformance vs. the S&P 500. A score this high points to first-rate financials: excellent earnings, cash flow, and growth vs. peers in its sector.
Top March Stock | InvestingPro Health Score |
---|---|
Xpel Inc (XPEL) | 3.64 / 5 |
Teekay Tankers (TNK) | 4.00 / 5 |
Stride Inc (LRN) | 3.45 / 5 |
AMN Healthcare Services (AMN) | 3.20 / 5 |
The Andersons Inc (ANDE) | 3.51 / 5 |
Importantly, all of these stocks are also currently undervalued per InvestingPro’s fair value calculations and favored by Wall Street analysts polled by InvestingPro. So if you’re eager to bulk up your portfolio, these overlooked powerhouse plays are all worth serious consideration.
Xpel Inc (XPEL):
- InvestingPro health score: 3.64 / 5.00
- InvestingPro average fair value: $60.49 / 8.3% upside
- Fair value confidence: Medium
- Industry: Consumer Discretionary / Automobile Components
As of the latest quarter, Xpel Inc (XPEL) has displayed promising indicators for potential investors, and it continues to be one of our top picks this month. The company’s market capitalization stands at approximately $1.54 billion, reflecting its size and position in the market. With a price-to-earnings (P/E) ratio of 29.2, the company’s stock is trading at a premium relative to its earnings, indicating high investor expectations for future growth.
Xpel Inc has managed to maintain a relatively low debt level, which is a positive sign for investors concerned about the company’s financial leverage. The company’s financial health score, as rated by InvestingPro, is 3.64 (improved from the previous month’s 3.14), signaling a robust financial position overall, even though Xpel Inc does not currently offer a dividend to its investors.
Analysts are optimistic about Xpel Inc’s growth prospects, with a consensus forecast pointing towards a potential upside of around 8.3% based on current market conditions. However, it’s important to note that the stock may exhibit higher volatility compared to more established companies, as it operates in a dynamic and competitive industry.
Teekay Tankers (TNK):
- InvestingPro health score: 4.00 / 5.00
- InvestingPro fair value: $72.05 / 18.4% upside
- Fair value confidence: Medium
- Industry: Oil, Gas & Consumable Fuels
Another rollover from March’s list thanks to continued confidence and positive movement, Teekay Tankers Ltd has a current market capitalization of approximately $2.07 billion. Its price-to-earnings (P/E) ratio is not applicable as the company reported negative earnings per share (EPS) for the last twelve months. Teekay Tankers Ltd has a debt-to-equity of 16.3%, indicating a manageable level of debt.
The company’s financial health overall score is 4.00, suggesting a solid financial position. Teekay Tankers Ltd is expected to benefit from the increasing demand for oil transportation due to the global economic recovery, which could positively impact its revenue. However, the volatility in oil prices and geopolitical factors may pose risks to the company’s performance.
Teekay Tankers Ltd’s stock is currently trading at a level that InvestingPro’s fair value calculations consider slightly undervalued, with an estimated 18.4% potential upside. The stock exhibits moderate volatility, with a 5-year beta of -0.28, indicating lower volatility compared to the overall market.
Stride Inc (LRN):
- InvestingPro health score: 3.45 / 5.00
- InvestingPro fair value: $74.16 / 17.6% upside
- Fair value confidence: Medium
- Industry: Consumer Discretionary / Diversified Consumer Services
Stride Inc (LRN) is a technology-based education service company which provides proprietary and third-party online curriculum, software systems, and educational services directed for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. As of April 4th 2024, the company had a market capitalization of $2.667 billion, which is currently significantly more than its market peers. Its price-to-earnings (P/E) ratio stood at 15.6x for the last twelve months, reflecting the stock’s valuation relative to its earnings. The basic earnings per share (EPS) for the last quarter was $1.54, demonstrating its profitability despite having dropped from previous quarters.
In terms of financial health, Stride received an overall score of 3.45, suggesting a stable financial position. The company’s total debt was reported at $542.00 million, which is significantly above its market peers, although its much larger revenue and operating income numbers should also be taken into consideration in a like-for-like comparison.
While this company doesn’t pay dividends to its shareholders, the company’s potential for growth and upside is solid as we go into the start of Q2. With a solid market capitalization, reasonable P/E ratio, and a healthy financial health score, Stride Inc presents an opportunity for investors seeking a balance between growth potential and financial stability.
AMN Healthcare Services (AMN):
- InvestingPro health score: 3.20 / 5.00
- InvestingPro fair value: $84.65 / 39.4% upside
- Fair value confidence: Medium
- Industry: Healthcare / Healthcare Providers & Services
AMN Healthcare Services (AMN) provides healthcare workforce solutions and staffing services to healthcare facilities in the United States. As of the end of last month, the company had a market capitalization of approximately $2.35 billion. AMN does not currently pay a dividend, and its price-to-earnings (P/E) ratio stands at 11.2, suggesting that the stock may be undervalued based on its earnings. The company’s financial health score is 3.20, indicating a strong financial position and ability to manage its debt.
Analysts’ consensus points to a mixed outlook in the short-term for AMN, with potential upside driven by the company’s industry-leading efforts in sustainability and social impact and an ‘outperformance’ rating. The stock exhibits moderate volatility, making it an attractive option for investors seeking a balance between potential returns and risk.
In summary, AMN Healthcare Services presents an intriguing opportunity for investors seeking exposure to the healthcare providers and services sector. With a solid financial position, promising sentiment, and favorable market dynamics, AMN is well-positioned for reversing its recent downtrend and promising potential growth in the coming months.
The Andersons Inc (ANDE):
- InvestingPro health score: 3.51 / 5.00
- InvestingPro fair value: $65.54 / 16.2% upside
- Fair value confidence: Medium
- Industry: Consumer Staples Distribution & Retail
The Andersons Inc (ANDE) is a diversified company operating in the agriculture and consumer products markets. With a market capitalization of approximately $1.90 billion, the company offers an annual dividend yield of 1.3%. ANDE has a price-to-earnings (P/E) ratio of 18.8, reflecting a slightly higher valuation compared to industry peers. The company has maintained a stable financial position with a manageable debt level, as indicated by a debt-to-equity ratio of 0.519.
Analysts anticipate a positive outlook for the company’s upcoming quarterly report, driven by its strong performance in the agriculture segment. The company’s recent strategic initiatives in the health segment are also expected to contribute to its growth. Despite the potential upside, investors should be aware of the moderate volatility associated with ANDE’s stock, which has exhibited fluctuations in line with market conditions.
In conclusion, The Andersons Inc presents an attractive investment opportunity with its solid financial metrics, consistent (if not exciting) dividend yield, and potential for growth in both the agriculture and health segments.
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Previous Investing Stock Picks for U.S. Markets
If you’re looking for more great opportunities, here is a list of our top stock picks for previous months.
Remember 📌
The health scores and these stocks’ place on our opportunities list were correct at the time of the original posting month. It’s important for investors to check any updated information, which can be done at the click of a button through InvestingPro.
Top March Stock | InvestingPro Health Score |
---|---|
Xpel Inc (XPEL) | 3.14 / 5 |
Teekay Tankers (TNK) | 3.71 / 5 |
Simply Good Foods (SMPL) | 3.02 / 5 |
United Therapeutics Corp (UTHR) | 3.72 / 5 |
The Andersons Inc (ANDE) | 3.31 / 5 |
Top January Stock | InvestingPro Health Score |
---|---|
Teekay Tankers (TNK) | 3.81 / 5 |
Mueller Industries (MLI) | 3.88 / 5 |
Danaos (DAC) | 3.89 / 5 |
Medifast (MED) | 3.30 / 5 |
Daqo New Energy (DQ) | 3.89 / 5 |
Top December 2023 Stock | InvestingPro Health Score |
---|---|
Semler Scientific (SMLR) | 3.99 / 5 |
RCI Hospitality Holdings (RICK) | 3.08 / 5 |
Academy Sports Outdoors (ASO) | 3.06 / 5 |
Chesapeake Energy Corp (CHK) | 3.22 / 5 |
Harmony Biosciences (HRMY) | 3.98 / 5 |
Top November 2023 Stock | InvestingPro Health Score |
---|---|
Visa (V) | 3.21 / 5 |
Taylor Morrison Home (TMHC) | 3.71 / 5 |
Marathon Petroleum (MPC) | 3.46 / 5 |
Mueller Industries (MLI) | 3.92 / 5 |
Humana (HUM) | 3.57 / 5 |
Top October 2023 Stock | InvestingPro Health Score |
---|---|
W.R. Berkley (WRB) | 3.29 / 5 |
Tapestry (TPR) | 2.94 / 5 |
Biogen (BIIB) | 3.02 / 5 |
PulteGroup (PHM) | 3.66 / 5 |
BorgWarner (BWA) | 3.03 / 5 |
Remember 📌
Past performance does not guarantee future success, and trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.