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3 Top Ranked Stock to Buy on this Pullback (FLUT, GRMN, PLMR)

Market volatility has picked up in recent weeks, leading to sharp declines in numerous high-flying stocks. Even some of the market’s strongest names, including Palantir, Applovin, and established giants like Amazon and Alphabet, have faced considerable selling pressure. While it remains unclear exactly when this correction will bottom out, the broader fundamental backdrop suggests that this is more likely a temporary pullback rather than the start of a prolonged downturn.

For investors looking to take advantage of the recent weakness, identifying stocks that are holding up better than the overall market can be an effective way to pinpoint potential future leaders. Stocks that demonstrate relative strength during periods of volatility often emerge as top performers once the market stabilizes.

Among the stocks showing resilience in the current environment, Flutter Entertainment ((FLUT - Free Report) ),Garmin ((GRMN - Free Report) ), and Palomar Holdings ((PLMR - Free Report) ) stand out. Each of these companies maintains a strong growth outlook, exhibits relative price strength, and boasts a top Zacks Rank, signaling favorable earnings trends. Here’s why these names deserve a closer look as the market digests recent selling pressure.

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Flutter Entertainment: Stock Rallies on Strong Growth Forecasts

Flutter Entertainment, the operator of popular sports betting platform FanDuel along with a diverse portfolio of online gambling brands, is the largest online betting company in the world. Its dominance in the industry, combined with strong growth catalysts, makes it a compelling investment opportunity.

The company holds a Zacks Rank #1 (Strong Buy), reflecting bullish sentiment from analysts. Growth forecasts are also impressive, sales are expected to rise 18.6% this year and 18.4% next year, while earnings are projected to soar 43% in 2024 and 82.4% in 2025.

Despite these strong fundamentals, Flutter’s stock remains reasonably valued. It trades at a forward earnings multiple of 29.8x, with earnings per share expected to climb 52.5% annually over the next three to five years. This gives it a PEG ratio of just 0.57, signaling an attractive valuation relative to its growth potential.

With the global sports betting market expanding rapidly and Flutter’s continued dominance in key regions, its shares could offer substantial upside for long-term investors. Furthermore, with its reasonable valuations, the downside risk should be limited.

Zacks Investment Research
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Palomar Holdings: Steady Stock with Impressive Growth

While the market fixates on AI-fueled speculation and high-volatility tech names, Palomar Holdings offers a refreshing alternative—a profitable, steadily expanding company in the comparably dull insurance sector. Though not the most exciting industry, insurance provides a resilient business model, with steady cash flows and essential services that remain in demand across economic cycles.

Palomar is a standout in the space, boasting a Zacks Rank #1 (Strong Buy) and impressive fundamentals. The company is on track for 36.2% revenue growth this year, followed by another 24% next year, while earnings are projected to rise 28.5% and 19.5%, respectively. Despite these strong numbers, PLMR trades at just 18.6x forward earnings, making it attractively valued relative to both its own growth potential and the broader industry.

With strong price momentum, reasonable valuation, and rising earnings estimates, Palomar offers a compelling combination of stability and growth, making it a stock investors shouldn’t ignore.

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Garmin: Shares Rally on Earnings Beats

Garmin is a leading provider of GPS navigation and wearable technology, with a diverse portfolio spanning aviation, marine, automotive, fitness, and outdoor markets. The company has built a strong reputation for high-quality, innovative products that cater to both consumers and professional industries.

Garmin holds a Zacks Rank #1 (Strong Buy), backed by unanimous analyst upgrades reflecting strong confidence in its growth trajectory. The company’s earnings per share (EPS) are projected to grow 21.6% annually over the next three to five years, signaling a robust long-term outlook.

A testament to its consistency, Garmin has missed earnings estimates only once in the past five years, delivering solid beats in every other quarter. This track record of outperformance is further supported by its Zacks Earnings ESP of 6.15%, suggesting another potential earnings beat in the upcoming report.

With strong fundamentals, steady growth, and a history of exceeding expectations, Garmin remains a compelling stock for investors seeking both stability and upside potential.

Zacks Investment Research
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Should Investors Buy Shares in GRMN, PLMR and FLUT?

While market volatility has shaken many high-growth stocks, Garmin, Palomar Holdings, and Flutter Entertainment have held up well, supported by strong fundamentals, consistent earnings growth, and favorable analyst sentiment. For those seeking a mix of stability and growth, these stocks stand out as compelling buys in the current environment.


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Garmin Ltd. (GRMN) - free report >>

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Flutter Entertainment PLC (FLUT) - free report >>

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