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November was a very strong month for stocks as the S&P 500 rose +8% while the Nasdaq climbed +10%. Investors will certainly be looking for stocks that can keep this momentum going and several top-rated Zacks stocks look attractive as their quarterly results approach next week.
Rounding out a favorable month for equities here is a look at three such stocks that could have more upside as we enter December.
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Science Applications International SAIC: Standing out in terms of value, Science Applications International is a tech stock to watch ahead of its third quarter results on Monday, December 4.
Science Applications is one of the leading information technology (IT) and professional services providers with it being noteworthy that the Zacks Computers-IT Services Industry is currently in the top 24% of over 250 Zacks industries. Although Q3 earnings are forecasted to dip -12% to $1.66 per share the Zacks ESP (Expected Surprise Prediction) indicates Science Applications could surpass expectations with the Most Accurate Estimate having Q3 EPS at $1.71 a share and 3% above the Zacks Consensus.
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Even Better, Science Applications’ stock has an “A” Zacks Style Scores grade for Value and trades at 15.7X forward earnings which is a nice discount to the industry average of 24.8X and the S&P 500’s 21.3X. Science Applications' stock rallied +7% in November and is now up +6% for the year.
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Ollie’s Bargain Outlet OLLI: One growth stock that should be on investors' radars in December is Ollie’s Bargain Outlet which has continued to build a niche as a value retailer of brand-name merchandise including home products and appliances.
Ollie’s is set to report its Q3 results next Wednesday, December 6, with earnings projected to rise 19% year over year to $0.44 a share and sales expected to be up 12% to $469.95 million.
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Expecting double-digit percentage growth on its top and bottom lines in its current fiscal 2024 and FY25, Ollie’s stock has an “A” Zacks Style Scores grade for Growth and has soared +56% in 2023. Furthermore, OLLI shares dipped -6% in November and could be due for a rebound after a healthy correction.
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The Duckhorn Portfolio NAPA: In terms of value, The Duckhorn Portfolio’s stock should also be on investors' radars as a premier producer of wines in North America. Reporting its fiscal first quarter earnings next Thursday, Duckhorn’s stock is starting to look undervalued and may be a strong buy-the-dip candidate after plummeting -31% this year and falling -1% in November.