5 Stocks to Watch: Week of 11/25

Happy Thanksgiving week to those celebrating! Today's list is a veritable feast. We've got Driven Brands Holdings (DRVN), an automotive services provider that a top-rated analyst believes could see 35% of higher upside in the coming year; Alibaba (BABA), a stock that dropped considerably in 2022-23 but could be on the road to recovery; you'll also find Vertiv (VRT), a company in fine financial shape that has seen an acceleration in earnings growth.

That's not all. Our Stock of the Week, Valmont Industries (VMI) also nabs a spot on the list — keep scrolling to lean two reasons why. Finally, we've got Cirrus Logic (CRUS), a semiconductor stock that just announced blockbuster earnings — but is still available at a bargain price.

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1-  Driven Brands Holdings Inc. (NASDAQ: DRVN) 

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. 

Analyst consensus: STRONG BUY 

Price: $16.55 (11/22 — see latest price here)

Max 1-year forecast: $22.00 (+36.65%)

Why it’s watchlist-worthy: 

• It’s a STRONG BUY: DRVN currently enjoys a Strong Buy consensus among the analysts we track, with 4 Strong Buy, 2 Buy, and 2 Hold ratings. (See the ratings)
• For example, Chris O'Cull of Stifel Nicolaus (a top 6% analyst), recently raised their price target on the stock following the company’s 10/31 earnings announcement, suggesting the stock could see over 35% upside in the coming year. O'Cull told readers they hiked their price target because Stifel Nicolaus rolled forward its estimates, adjusting its quarterly EPS estimates for FY 2025 but leaving its full-year estimate unchanged.
• It may be a good value in its industry: According to our due diligence checks, DRVN is good value based on its earnings relative to its share price (805x), compared to the US Auto & Truck Dealerships industry average (-2,486.07x). 
• Forecasts are positive: Several forecasts point to near-term success. For example, DRVN's Return on Equity is forecast to be high in 4 years (30.68%); analysts are confident in the firm's ability to efficiently generate return on equity. Additionally, DRVN is forecast to generate higher Return on Assets (5.13%) than the US Auto & Truck Dealerships industry average (3.02%).

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2- Alibaba Group Holdings (NYSE: BABA)

Alibaba Group Holding Limited specializes in e-commerce, retail, Internet, and technology. 

Analyst consensus: STRONG BUY 

Price: $83.18 (11/22 — see latest price here)

Max 1-year forecast: $130.00 (+51.9%)

Why it’s watchlist-worthy: 

• It’s a STRONG BUY: BABA currently enjoys a Strong Buy consensus among the analysts we track, with 8 Strong Buy, 2 Buy, and 2 Hold ratings. (See the ratings)
• It may be well-priced: Our due diligence checks reveal that BABA is good value based on its earnings relative to its share price (17.08x), compared to the US market average (27.47x), and compared to the US Internet Retail industry average (52.92x). 
• Sufficient interest coverage: On the financial front, BABA's Earnings (EBIT) of $17.21B can safely cover interest payments on company debt ($28.21B). 
• Positive ROE forecast: BABA's Return on Equity is forecast to be high in 3 years (158.5%); analysts are confident in the firm's ability to efficiently generate return on equity. 

3- Cirrus Logic Inc. (NASDAQ: CRUS)

Cirrus Logic, Inc., a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally.

Analyst consensus: STRONG BUY 

Price: $104.26 (11/22 — see latest price here)

Max 1-year forecast: $165.00 (+60.9%)

Why it’s watchlist-worthy: 

• It’s a STRONG BUY: CRUS currently enjoys a Strong Buy consensus among the analysts we track, with 3 Strong Buy and 1 Hold rating. (See the ratings)
• For example, Christopher Rolland of Susquehanna (a top 1% analyst) recently raised their price target on CRUS following the company’s earnings on 11/4. Rolland backgrounded their price target hike by saying that "they are excited by the company's near-term PC opportunity, overlaid by the longer-term AI opportunities in power and audio." 
• It may be a great value: CRUS ($102.55) is undervalued by 27.11% relative to our estimate of its Fair Value price of $140.70 based on Discounted Cash Flow (DCF) modelling, but does not have a significant margin of safety. 
• Accelerating earnings growth: CRUS's earnings growth is accelerating - its growth over the last year (137.21%) is above its 5-year compound annual rate (25.07%).

4- Valmont Industries (NYSE: VMI) 

Valmont Industries Incorporated manufactures and sells fabricated metal products in the U.S. and internationally. 

Analyst consensus: STRONG BUY 

Price: $339.30 (11/22 — see latest price here)

Max 1-year forecast: $380.00 (+12.18%)

Why it’s watchlist-worthy: 

• It’s a STRONG BUY: While only 2 analysts we track currently issue ratings on VMI, they’re both Strong Buy ratings. (See the ratings) 
• It’s our Stock of the Week: According to Steve Reitmeister, 44-year market veteran and Editor in Chief of Zen Investor, VMI is a must-watch for two key reasons. Discover why here.
• Two indications it’s a good value: Our due diligence checks reveal VMI is good value based on its earnings relative to its share price (22.86x), compared to the US market average (27.47x), and also that it’s a good value based on its book value relative to its share price (4.4x), compared to the US Conglomerates industry average (5.68x). 
• Great financial shape: Our due diligence checks also reveal that VMI is in great shape financially; VMI's profit margin has increased (+4%) in the last year from (3.6%) to (7.6%), and currently, its short-term assets ($1.81B) exceed its short-term liabilities ($770.05M).

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 5- Vertiv Holdings, Co. (NYSE: VRT) 

Analyst consensus: STRONG BUY 

Price: $139.96 (11/22 — see latest price here)

Max 1-year forecast:  $155.00 (+9.55%)

Why it’s watchlist-worthy: 

• It’s a STRONG BUY: VRT currently enjoys a Strong Buy consensus among the analysts we track, with 7 Strong Buy and 3 Buy ratings. No Hold, Sell, or Strong Sell ratings. (See the ratings here)
• Financial strength: Our due diligence checks reveal that VRT is a financially sound company based on factors including that its Earnings (EBIT) of $870.10M can safely cover interest payments on company debt ($3.09B) and its short-term assets ($4.80B) exceed its short-term liabilities ($3.49B). 
• Accelerating earnings growth: VRT's earnings growth is accelerating - its growth over the last year (129.85%) is above its 5-year compound annual rate. Additionally, VRT's earnings have grown faster (135.72% per year) than the US market average (24.07%)
• Accelerating earnings growth: VRT's earnings growth is accelerating - its growth over the last year (129.85%) is above its 5-year compound annual rate. Additionally, VRT's earnings have grown faster (135.72% per year) than the US market average (24.07%)

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