115 Reasons to Buy This Stock

Steelcase (SCS) is a leader in office furniture and interior design. 

This may strike folks funny as the onset of Covid sparked a movement leading many more people working at home. And thus one would assume that demand for office furniture is on the decline. Yet as can clearly be seen by Steelcase’s string of 10 post Covid earnings beats...nothing could be further from the truth. 

Companies are in a state of flux over how much folks can work at home versus being in the office. And that flux = new concepts about what office workspace should look like. And that is actually increasing demand for Steelcase’s myriad of products. 

That growth is expected to continue with a 15% earnings increase projected for next year. On the other hand, with an average 27% earnings beat the past 4 quarters, that growth rate will likely end up being nicely higher. 

Where SCS shines the most is through the prism of the Zen Ratings 115 factor analysis of every stock. This is where the A rated stocks have beaten the S&P 500 by more than 3 to 1 since 2003. 

In this case SCS comes out in the top 1% of the 4,600 stocks examined by the system for likelihood of future stock price outperformance. That means it's an A rated Strong Buy overall. Yet as we dig into the component grades we find even more to love about this stock. 

94th percentile for AI factor. This singular factor is the most comprehensive in the 115 factor model as it scans many trends that point to stocks likely to outperform. As with any AI system it keeps getting smarter. And right now it is telling you it is wise to buy SCS. 

92nd percentile for Safety. This means you are not taking excessive risk to get the likely reward of SCS’ upside potential. 

91st percentile Value. Please note that there are 21 different factors combined in the Value criteria. Each individual factor is proven to find stocks that outperform. So yes, it is fair to say there are 21 Value factors pointing to a lot more upside with SCS. 

It’s not just the Zen Ratings talking up the virtue of Steelcase. Some top Wall Street Analysts are taking notice as well. 

Here we find the average fair value target of the 2 analysts following the stock to be $17. Gladly Reuben Garner (Top 5% from Benchmark) sees $18 as the rightful destination for shares. This marks 33% upside from where SCS stands now. 

You may think that only having 2 analysts covering shares is a negative. But my nearly 20 years at Zacks, with a focus on Wall Street analysts, points to this actually being a positive. 

That is because an underfollowed stock that continues to display impressive fundamentals (like a string of big earnings beats) will get more analyst attention over time. Each successive new Buy rating added to a small, underfollowed company like this, will be a strong catalyst for shares to bolt higher. 

When you break it down, here is the basic equation for why Steelcase is so attractive: 

Underfollowed by Wall Street + Severely Undervalued + Stellar Fundamentals (Top 1% Zen Ratings) + 27% average earnings beat = Stock with the makings to double by the end of 2025. 

What To Do Next?

Steelcase (SCS) is just one of the stellar stocks found in my Zen Investor portfolio.

Each pick goes through our rigorous 4 step screening process to find more 100%+ stock winners. 

To get your hands on my current stock recommendations…plus the 2 new buy recommendations coming on December 4th…then all you need to do is click the link below. 

Discover the Zen Investor portfolio > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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