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Zacks Investment Ideas feature highlights: Beacon Roofing Supply, Embecta and Western Midstream Partners

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For Immediate Release

Chicago, IL – December 21, 2023 – Today, Zacks Investment Ideas feature highlights Beacon Roofing Supply (BECN - Free Report) , Embecta Corp (EMBC - Free Report) and Western Midstream Partners (WES - Free Report) .

Intriguing Additions to the Zacks Rank #1 Strong Buy List

Market sentiment has remained higher in correlation with easing inflation and the Fed’s more dovish outlook with more and more stocks starting to participate in the broader rally.

Notably, several intriguing stocks were recently added to the Zacks Rank #1 (Strong Buy) list this week and shouldn’t be overlooked as we round out what has been an exciting year for the stock market.

Beacon Roofing Supply

Beacon Roofing Supply’s stock is compelling at the moment as the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products in the United States and Canada.

Standing out in terms of growth and value, Beacon’s annual earnings are now forecasted to rise 9% in fiscal 2023 and jump another 7% in FY24 to $8.03 per share. More astonishing, FY24 EPS projections would represent 232% growth over the last five years with earnings at $2.42 a share in 2020. In correlation with such expansive growth Beacon’s stock has soared +67% this year but still trades at a very reasonable 11.5X forward earnings multiple.

Embecta Corp

Standing out in terms of value, Embecta is an intriguing medical stock to consider at year’s end. As a pure-play diabetes care company, Embecta’s stock appears to be on the cusp of oversold territory down -27% in 2023 to current levels of around $18 a share.

Embecta is facing a very tough fiscal year to follow but is starting to make the case for being undervalued as annual earnings are now forecasted to dip -32% to $2.04 a share in its current FY24 but rebound and rise 12% in FY25 to $2.29 per share. Plus, earnings estimate revisions for FY24 and FY25 have remained modestly higher over the last 60 days offering further support to the company’s cheap P/E valuation at just 8.7X forward earnings.

Western Midstream Partners

Trading at 10.5X forward earnings rising EPS estimates make Western Midstream Partners stock attractive as a limited partnership (LP) formed to own and operate midstream energy assets.

Western Midscream’s stock is up a modest +4% YTD and now looks like an ideal time to buy with earnings projected to dip -12% this year but rebound and climb 25% to $3.31 per share in FY24. More luring is that Western Midstream offers an 8.23% annual dividend yield which has increased 12 times in the last five years and towers over the S&P 500’s 1.38% average and its Zacks industry average of 4.66%.

Takeaway

These new additions to the Zacks Rank #1 (Strong Buy) list are starting to offer nice value to investors at their current levels. To that point, Beacon Roofing Supply, Embecta, and Western Midstream Partners’ stock looked poised to move higher in December and should be meaningful investments in 2024.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Beacon Roofing Supply, Inc. (BECN) - free report >>

Western Midstream Partners, LP (WES) - free report >>

Embecta Corp. (EMBC) - free report >>

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