Steelcase (SCS): Under the Radar Small Cap Ready to Rock!

Steelcase (SCS) is a leader in office furniture and interior design. This may strike folks funny as the Covid movement led to many more people working at home.

And thus would assume that demand for office furniture is on the decline. Yet as can clearly be seen by Steelcase’s recent earnings results…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 57% 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 POWR Ratings 118 factor analysis of every stock. In this case it comes out in the top 1% of the 5,300 stocks examined by the system for likelihood of future stock price outperformance. 

This is about as appealing as a scorecard gets with high marks on 4 of the most vital component scores: Growth, Value, Momentum and Sentiment.

Even though Quality looks like a modest C it still puts SCS in the top 30% of that category. So, no matter how you slice it, the POWR Ratings analysis sees ample reason for upside potential on these shares. 

Gladly the one analyst covering the stock agrees with this notion. I am referring to Reuben Garner of Benchmark in the Top 6% of all analysts pounding the table on Steelcase with $18 target. That points to shares being about 40% undervalued at this time. 

You may think that only having 1 analyst covering shares is a negative. But my nearly 20 years at Zacks, with a focus on Wall Street analysts, points to this 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. 

This all points to SCS being yet another company in our portfolio with 100% upside potential over the long haul.  

What To Do Next?

Steelcase (SCS) is just one of the 9 stellar stocks found in my Zen Investor portfolio.

To learn more about my exclusive 4 step process to find more 100%+ stock winners…and to get your hands on the current top 9 recommendations…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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