Today, the stock market is breaking out to new highs following yesterday’s selling. It’s a good time to buy stocks with considerable upside.

One way to find these stocks is by looking at opportunities where there is a significant gap between the market price and analysts’ price targets. Further, there is more upside in low-priced stocks as many institutions won’t consider investing in them.

Let’s shift our attention to two affordable stocks that the investing gurus insist will jump in the year ahead. Those two stocks are Del Taco Restaurants (TACO) and Nexa Resources (NEXA).
 
TACO

TACO is the country’s second-largest Mexican-American restaurant chain when measured by units. Though most of those living in the northeast don’t know it, TACO serves more than three million customers every single week. TACO restaurant merits include the use of lard-free beans, cheese grated from 40 lb. blocks, freshly grilled chicken, and handmade pico de gallo. Though TACO’s version of Tex-Mex isn’t exactly gourmet food, it hits the spot without zapping your budget.

TACO is ranked third of 45 stocks in the Restaurants category. The Restaurants category as a whole has an A grade. Click here to learn more about the stocks in this space.

TACO has an A POWR Rating grade. The stock has As in the Value and Growth components. TACO has Bs in the Momentum and Quality components. If you would like to find out how TACO fares in the remainder of the POWR Ratings components such as Sentiment and Stability, you can find out by clicking here.

TACO has a forward P/E ratio of 21.77. This ratio is somewhat high for a Tex-Mex chain restaurant yet it must be noted the stock is trading about $2 below its 52-week high of $11.99. TACO’s beta of 2.08 is slightly concerning as it indicates the stock has the potential to prove volatile should the market fluctuate.

The analysts have established an average target price of $13.75 for TACO. If the stock reaches this level, it will have increased by more than 35%. The lowest analyst target price for TACO is $11. The analysts’ high target price for the stock is $15. The average analyst target price for TACO has increased nearly $7 across the previous year. At the current moment, a total of four analysts have provided TACO recommendations. Two analysts view the stock as a Strong Buy, one views it as a Buy, and one view it as a Hold.

NEXA

NEXA is a zinc producer. The company mines and smelts in Latin America. To be more specific, the majority of NEXA’s operations are in Peru’s Central Andes and Brazil’s Minas Gerais.

NEXA is up more than 52% across the past year. The top analysts insist NEXA has more than 34% upside. The stock pays a dividend of 3.05%.

NEXA has a ridiculously low forward P/E ratio of 5.32. This ratio indicates the stock is underpriced at $9 per share. NEXA’s 52-week high is $12.58. The stock’s 52-week low is $5.13. NEXA also has a favorable beta of 1.66, indicating the stock won’t slide much should the market endure a sell-off.

NEXA has a B POWR Rating grade, meaning it qualifies as a Buy. The stock also has B grades in the individual POWR Rating components of Quality, Growth, Momentum, and Value. Click here to find out NEXA’s grades in the Sentiment and Stability components.

NEXA is ranked third of 47 publicly traded companies in the Miners – Diversified space. Investors who are interested in learning more about the stocks in this segment can do so by clicking here.