New Strong Buy Stocks for November 14th

Here are two stocks with buy rank and strong income characteristics for investors to consider today, November 14:

Sappi Limited SPPJY: This wood fiber-based renewable resources company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.7% the last 60 days.

Sappi Ltd. Price and Consensus

Sappi Ltd. price-consensus-chart | Sappi Ltd. Quote

This Zacks Rank #1 company has a dividend yield of 4.1%, compared with the industry average of 1.6%.

Sappi Ltd. Dividend Yield (TTM)

Sappi Ltd. dividend-yield-ttm | Sappi Ltd. Quote

Townsquare Media, Inc. TSQ: This digital media and marketing solutions company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% the last 60 days.

Townsquare Media, Inc. Price and Consensus

Townsquare Media, Inc. price-consensus-chart | Townsquare Media, Inc. Quote

This Zacks Rank #1 company has a dividend yield of 8.0%, compared with the industry average of 0.0%.

Townsquare Media, Inc. Dividend Yield (TTM)

Townsquare Media, Inc. dividend-yield-ttm | Townsquare Media, Inc. Quote

See the full list of top ranked stocks here.

Find more top income stocks with some of our great premium screens.

Zacks Investment Research

Here are three stocks with buy rank and strong value characteristics for investors to consider today, November 14:

Sappi Limited SPPJY: This wood fiber-based renewable resources company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.7% over the last 60 days.

Sappi Ltd. Price and Consensus

Sappi Ltd. price-consensus-chart | Sappi Ltd. Quote

Sappi Limited has a price-to-earnings ratio (P/E) of 4.99 compared with 5.10 for the industry. The company possesses a Value Score of A.

Sappi Ltd. PE Ratio (TTM)

Sappi Ltd. pe-ratio-ttm | Sappi Ltd. Quote

Townsquare Media, Inc. TSQ: This digital media and marketing solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.

Townsquare Media, Inc. Price and Consensus

Townsquare Media, Inc. price-consensus-chart | Townsquare Media, Inc. Quote

Townsquare Media has a price-to-earnings ratio (P/E) of 9.21 compared with 24.23 for the S&P. The company possesses a Value Score of A.

Townsquare Media, Inc. PE Ratio (TTM)

Townsquare Media, Inc. pe-ratio-ttm | Townsquare Media, Inc. Quote

Allient Inc. ALNT: This industrial manufacturing company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.5% over the last 60 days.

Allient Inc. Price and Consensus

Allient Inc. price-consensus-chart | Allient Inc. Quote

Allient has a price-to-earnings ratio (P/E) of 16.69 compared with 22.10 for the industry. The company possesses a Value Score of A.

Allient Inc. PE Ratio (TTM)

Allient Inc. pe-ratio-ttm | Allient Inc. Quote

See the full list of top ranked stocks here.

Learn more about the Value score and how it is calculated here.

Zacks Investment Research

TrueBlue (TBI) closed the last trading session at $8.16, gaining 10.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $12 indicates a 47.1% upside potential.

The mean estimate comprises three short-term price targets with a standard deviation of $1. While the lowest estimate of $11 indicates a 34.8% increase from the current price level, the most optimistic analyst expects the stock to surge 59.3% to reach $13. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in TBI. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Here's What You May Not Know About Analysts' Price Targets

According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why TBI Could Witness a Solid Upside

There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 13.9%, as one estimate has moved higher compared to no negative revision.

Moreover, TBI currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

Therefore, while the consensus price target may not be a reliable indicator of how much TBI could gain, the direction of price movement it implies does appear to be a good guide.

Zacks Investment Research