5 Stocks With Great Bounce-Back Potential In 2021

Basset has a PEG (price-to-earnings growth) ratio of 0.88 and a price to sales (P/S) ratio of 0.51X, meaning that you currently have to pay less than its sales or earnings growth potential right now.

What’s more, it pays a dividend that yields 2.56%.

I also like #2 (Buy) ranked KB Home (KBH Quick Quote KBH - Free Report), which being in the construction sector, hasn’t done as bad as Basset in 2020. So its 2020 earnings of $2.89 were in fact slightly ahead of the 2019 earnings of $2.85. In 2021 however, earnings are expected to soar to $4.27.

This kind of growth can only be called fantastic, especially since this isn’t your typical new and therefore, fast-growing company. It’s a mature company, one of the largest homebuilders in California in fact, catering to first-time, move-up, and active adult homebuyers on both acquired and developed lands. Its offerings include attached and detached single-family homes, townhomes, and condominiums.

The Building Products - Home Builders industry, to which it belongs, is also in the top 10% of Zacks-classified industries.

The stock’s Value, Growth, and Momentum Scores are A, C, and B, respectively. So it is suitable for most investors.

KB has a PEG ratio of 0.55 and a P/S ratio of 0.65X, which of course means that it is undervalued on both counts.

Plus there’s the bonus. It pays a dividend that yields 1.83%.

Next, we have #2 ranked M.D.C. Holdings, Inc. (MDC Quick Quote MDC - Free Report), which is another homebuilder of the similar stature as KB. MDC has had a super year in 2020, with its earnings going from $3.72 to $5.09. But I couldn’t help adding this one simply because it is not showing any signs of slowing down. So I’m seeing a 2021 estimate of $6.40 for the current year, which you just have to call out.

The stock’s Value, Growth, and Momentum Scores are B, C, and A, respectively. So it is suitable for most investors.

View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.