3 Cheap Highly Ranked Stocks to Buy for a Rebound: CARS, OPFI, QUAD

The culmination of a potential interest rate cut looming and more clarity surrounding tariffs has led to a sharp rebound in the Russell 2000, which has spiked nearly +9% in the last month.

Seeing as a more favorable operating environment will greatly improve investor sentiment for small-cap U.S. companies, here are three Russell 2000 stocks that look set for a continued rebound and currently sport a Zacks Rank #1 (Strong Buy).

Cars.com – CARS

Stock Price: $12

Perhaps the most intriguing stock on the list, Cars.com CARS is still 40% from its 52-week high of $20 a share. High interest rates, inflation, and President Trump’s 25% tariff on most imported vehicles have weakened consumer demand for big-ticket items like cars, but many analysts see upside potential for Cars.com stock as macro conditions improve.

Reassuringly, earnings estimate revisions (EPS) for Cars.com are slightly up in the last 60 days for fiscal 2025 and FY26. Most intriguing at $12 a share, Cars.com stock is trading at just 7X forward earnings with EPS now expected to increase 4% this year and projected to spike another 32% in FY26 to $2.35. At the moment, the Average Zacks Price Target of $17.17 a share suggests nearly 35% upside for CARS.

OppFi – OPFI

Stock Price: $10

While not a household name yet, OppFi OPFI went public via a SPAC merger in 2021 and is growing in notoriety as a specialty finance platform that streamlines affordable credit options and products for consumers by connecting them with third-party banking vendors.

Despite sitting on gains of more than +30% year to date, OppFi stock is 40% off its 52-week high of $17 a share. Still calling for more upside in OppFi stock, Wall Street analysts have remained bullish on the fintech firm's growth, with the Average Zacks Price Target of $14 a share suggesting 36% upside in OPFI.

Standing out in terms of value as well, OPFI also trades at 7X forward earnings with FY25 EPS currently slated to pop 49% to $1.49 compared to $0.95 a share last year. Notably, FY25 EPS revisions are up 15% in the last 30 days after OppFi was able to blow away its Q2 earnings expectations in early August.

OppFi’s annual earnings are expected to increase another 4% in FY26 to $1.48 per share, taking advantage of its steady top-line growth with sales projections edging north of $600 million.

Quad Graphics – QUAD

Stock Price: $6

Trading just above penny stock status at $6 a share is Quad Graphics QUAD, a provider of commercial printing solutions, including digital imaging, data optimization, and analytics services. The Average Zacks Price Target forecasts QUAD to eventually re-hit its 52-week peak of $9.

Considering Quad Graphics is profitable, the risk-to-reward is very favorable to invest in QUAD at 6X forward earnings. Plus, EPS revisions have spiked in the last two months, with Quad Graphics' annual earnings now forecasted to rise 13% in FY25 and projected to increase another 15% next year to $1.11 per share. 

Even better, the cherry on top is that Quad Graphics currently has a 4.5% annual dividend yield.

Bottom Line

Thanks to appealing valuations and the likelihood that their growth will be accelerated by a more favorable macroeconomic landscape, these highly ranked stocks are starting to embody why investor interest has shifted toward the Russell 2000.   

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This article originally published on Zacks Investment Research (zacks.com).

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