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3 Soaring Top-Ranked Stocks to Buy for Long-Term Value
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The stock market is in the midst of a much-needed break as Wall Street takes profits following another mini-run off a key short-term moving average. The Nasdaq slipped below its 21-day again on Friday, which is a level that has provided bullish support throughout 2024.
The major U.S. indexes were always going to slide down to longer-term averages such as the 50-day or 21-week. The larger pullback could happen now or down the road. The next significant downturn should be viewed as a buying opportunity.
The bull case remains even though Wall Street slightly recalibrated its outlook for inflation and rates once again. Investors likely want to stay exposed to the market in 2024 and keep buying stocks, especially if they have long-term outlooks.
It is likely wise to buy stocks that offer a powerful combination of upward earnings revisions and stellar value. All three stocks we dive into today have also surged over the last decade.
Stride stock has climbed 110% in the last three years to blow away the benchmark’s 30%, including a 53% surge during the past 12 months to top the Zacks Tech sector’s 47%.
The online education standout is not just a post-Covid success. LRN is up 180% in the past decade to match the S&P 500. Stride shares have cooled off in 2024 and have moved sideways since early December, presenting a nice entry point.
Image Source: Zacks Investment Research
Stride is finding support at its 21-week moving average. LRN could face some selling pressure in the near term alongside the broader market. But Stride trades 17% below its average Zacks price target. The stock also looks flat-out cheap on the valuation side.
Stride trades at an 80% discount to its highs and 45% below its 10-year median at 13.3X forward earnings even though its stock price is near all-time highs. LRN offers 35% value vs. the S&P 500 and 50% vs. Tech.
Stride’s digital education services attract students of all ages in the U.S. and globally. LRN’s growing portfolio serves K–12 students and parents, adult learners, school districts, businesses, the military, and beyond. The company is expanding as more people dive into digital education and reevaluate college amid skyrocketing costs. Stride is gaining steam in its career learning segment, especially from its middle-high school cohort.
Image Source: Zacks Investment Research
Stride grew its revenue from $400 million in 2010 to $1.84 billion last year. Its sales popped 9% in FY23 and 10% in FY22, after soaring 48% in FY21. The firm is projected to post another 10% growth in FY24 and 6% higher in FY25. LRN’s adjusted earnings are expected to soar by 45% in FY24 and 10% in FY25. Stride has also consistently topped our EPS estimates and its EPS revisions help it land a Zacks Rank #1 (Strong Buy).
Toll Brothers is a luxury homebuilding titan. TOL stock has climbed 230% in the last five years to more than double the S&P 500 and crush the Zacks Construction sector’s 150%. TOL has soared 100% in the past 12 months and 16% YTD.
Toll Brothers appears a bit overextended from a technical standpoint, trading at overbought RSI levels on a 10-year timeframe and well above its 21-day and 21-week moving averages. TOL will pull back to a key moving average at some point. Yet, TOL appears deeply discounted even though Toll Brothers stock trades near all-time highs.
Image Source: Zacks Investment Research
Toll Brothers trades at a 50% discount to the Construction sector and 17% below the Home Builders industry. More importantly, TOL trades 55% below its 10-year highs despite its stock price climbing 235%.
Toll Brothers is a diversified luxury home builder that operates its own architectural, engineering, mortgage, title, and land development subsidiaries, and other offerings that fit into its high-end business. TOL builds in roughly half of U.S. states and over 60 markets from Arizona and California to New York and North Carolina.
Image Source: Zacks Investment Research
Toll Brothers faces a slowdown as the housing market cools. But its earnings revisions soared after its February 20 release to capture a Zacks Rank #1 (Strong Buy). And TOL’s net signed contract value climbed 42% in Q1 FY24.
TOL’s long-term outlook remains impressive since Millennials drive the housing market and Baby Boomers are retiring and moving. Toll Brothers and other home builders also didn’t overbuild during the Covid boom, leaving demand far outpacing supply.
Murphy USA is a gas station powerhouse. MUSA stock has skyrocketed 930% in the last decade, leaving the benchmark’s 180% run in the dust and destroying the Oil and Energy sector’s 17% downturn. Murphy USA shares are up 220% in the past three years to top its sector’s 43% climb, driven by a 70% run in the last 12 months vs. Oil and Energy’s 13%.
Image Source: Zacks Investment Research
Murphy USA rebounded above its 21-day recently to head back up to its records. MUSA, like the market, is likely to test its 21-week moving average at some point soon. But the nearby chart showcases its steady surge higher during the last 10 years.
Value-wise, MUSA trades at its 10-year median and 33% below its highs at 16.2X forward 12-month earnings. The company also pays dividends and returns excess cash to shareholders through buybacks.
Image Source: Zacks Investment Research
Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart, primarily in the Southeast, Southwest and Midwest. MUSA serves around 1.6 million customers daily and owns a dedicated line space on the Colonial Pipeline, the largest refined products system in the U.S.
Murphy USA’s earnings outlook has climbed higher and higher over the last five years, with its post-Q4 release positivity landing it a Zacks Rank #1 (Strong Buy).
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3 Soaring Top-Ranked Stocks to Buy for Long-Term Value
The stock market is in the midst of a much-needed break as Wall Street takes profits following another mini-run off a key short-term moving average. The Nasdaq slipped below its 21-day again on Friday, which is a level that has provided bullish support throughout 2024.
The major U.S. indexes were always going to slide down to longer-term averages such as the 50-day or 21-week. The larger pullback could happen now or down the road. The next significant downturn should be viewed as a buying opportunity.
The bull case remains even though Wall Street slightly recalibrated its outlook for inflation and rates once again. Investors likely want to stay exposed to the market in 2024 and keep buying stocks, especially if they have long-term outlooks.
It is likely wise to buy stocks that offer a powerful combination of upward earnings revisions and stellar value. All three stocks we dive into today have also surged over the last decade.
Stride, Inc. ((LRN - Free Report) )
Stride stock has climbed 110% in the last three years to blow away the benchmark’s 30%, including a 53% surge during the past 12 months to top the Zacks Tech sector’s 47%.
The online education standout is not just a post-Covid success. LRN is up 180% in the past decade to match the S&P 500. Stride shares have cooled off in 2024 and have moved sideways since early December, presenting a nice entry point.
Image Source: Zacks Investment Research
Stride is finding support at its 21-week moving average. LRN could face some selling pressure in the near term alongside the broader market. But Stride trades 17% below its average Zacks price target. The stock also looks flat-out cheap on the valuation side.
Stride trades at an 80% discount to its highs and 45% below its 10-year median at 13.3X forward earnings even though its stock price is near all-time highs. LRN offers 35% value vs. the S&P 500 and 50% vs. Tech.
Stride’s digital education services attract students of all ages in the U.S. and globally. LRN’s growing portfolio serves K–12 students and parents, adult learners, school districts, businesses, the military, and beyond. The company is expanding as more people dive into digital education and reevaluate college amid skyrocketing costs. Stride is gaining steam in its career learning segment, especially from its middle-high school cohort.
Image Source: Zacks Investment Research
Stride grew its revenue from $400 million in 2010 to $1.84 billion last year. Its sales popped 9% in FY23 and 10% in FY22, after soaring 48% in FY21. The firm is projected to post another 10% growth in FY24 and 6% higher in FY25. LRN’s adjusted earnings are expected to soar by 45% in FY24 and 10% in FY25. Stride has also consistently topped our EPS estimates and its EPS revisions help it land a Zacks Rank #1 (Strong Buy).
Toll Brothers, Inc. ((TOL - Free Report) )
Toll Brothers is a luxury homebuilding titan. TOL stock has climbed 230% in the last five years to more than double the S&P 500 and crush the Zacks Construction sector’s 150%. TOL has soared 100% in the past 12 months and 16% YTD.
Toll Brothers appears a bit overextended from a technical standpoint, trading at overbought RSI levels on a 10-year timeframe and well above its 21-day and 21-week moving averages. TOL will pull back to a key moving average at some point. Yet, TOL appears deeply discounted even though Toll Brothers stock trades near all-time highs.
Image Source: Zacks Investment Research
Toll Brothers trades at a 50% discount to the Construction sector and 17% below the Home Builders industry. More importantly, TOL trades 55% below its 10-year highs despite its stock price climbing 235%.
Toll Brothers is a diversified luxury home builder that operates its own architectural, engineering, mortgage, title, and land development subsidiaries, and other offerings that fit into its high-end business. TOL builds in roughly half of U.S. states and over 60 markets from Arizona and California to New York and North Carolina.
Image Source: Zacks Investment Research
Toll Brothers faces a slowdown as the housing market cools. But its earnings revisions soared after its February 20 release to capture a Zacks Rank #1 (Strong Buy). And TOL’s net signed contract value climbed 42% in Q1 FY24.
TOL’s long-term outlook remains impressive since Millennials drive the housing market and Baby Boomers are retiring and moving. Toll Brothers and other home builders also didn’t overbuild during the Covid boom, leaving demand far outpacing supply.
Murphy USA ((MUSA - Free Report) )
Murphy USA is a gas station powerhouse. MUSA stock has skyrocketed 930% in the last decade, leaving the benchmark’s 180% run in the dust and destroying the Oil and Energy sector’s 17% downturn. Murphy USA shares are up 220% in the past three years to top its sector’s 43% climb, driven by a 70% run in the last 12 months vs. Oil and Energy’s 13%.
Image Source: Zacks Investment Research
Murphy USA rebounded above its 21-day recently to head back up to its records. MUSA, like the market, is likely to test its 21-week moving average at some point soon. But the nearby chart showcases its steady surge higher during the last 10 years.
Value-wise, MUSA trades at its 10-year median and 33% below its highs at 16.2X forward 12-month earnings. The company also pays dividends and returns excess cash to shareholders through buybacks.
Image Source: Zacks Investment Research
Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart, primarily in the Southeast, Southwest and Midwest. MUSA serves around 1.6 million customers daily and owns a dedicated line space on the Colonial Pipeline, the largest refined products system in the U.S.
Murphy USA’s earnings outlook has climbed higher and higher over the last five years, with its post-Q4 release positivity landing it a Zacks Rank #1 (Strong Buy).