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

The Russell 2000's recent 9% rebound, fueled by anticipated interest rate cuts and tariff clarity, is driving renewed investor interest in small-cap U.S. companies. Within this context, the article highlights three Zacks Rank #1 stocks—Cars.com (CARS), OppFi (OPFI), and Quad Graphics (QUAD)—as compelling rebound opportunities. These companies exhibit attractive valuations, trading at 6-7x forward earnings, and project significant EPS growth and upside potential of 35-36% based on average analyst targets, underpinned by recent positive earnings revisions.

Analysis

A potential shift in macroeconomic conditions, specifically the prospect of interest rate cuts and greater clarity on tariffs, is fueling a rebound in the Russell 2000, which has gained 9% in the last month. This backdrop has increased investor appetite for select U.S. small-cap stocks positioned for a recovery. The report highlights three such companies—Cars.com (CARS), OppFi (OPFI), and Quad Graphics (QUAD)—all characterized by low forward P/E valuations and strong earnings growth outlooks. Both CARS and OPFI trade at 7x forward earnings, while QUAD is valued at 6x. Despite current headwinds from high interest rates affecting the auto market, CARS is projected to see a 32% EPS spike in FY26. OPFI, a fintech platform, has already demonstrated strong momentum with a significant Q2 earnings beat that prompted a 15% upward revision to its FY25 EPS estimates, which are now expected to grow 49%. QUAD complements its growth profile, which includes a forecasted 15% EPS increase in FY26, with a 4.5% annual dividend yield. Analyst price targets suggest significant upside, with CARS and OPFI having implied gains of approximately 35% and 36%, respectively, while both remain 40% below their 52-week highs, indicating substantial recovery potential.

Key Decisions for Investors

• Given the combination of low forward valuations (6-7x P/E), positive earnings estimate revisions, and strong double-digit EPS growth projections, investors may find CARS, OPFI, and QUAD to be compelling small-cap opportunities aligned with a potential macroeconomic recovery.
• Investors should differentiate the risk-reward profiles: OPFI offers a high-growth fintech narrative validated by recent earnings outperformance, QUAD presents a value and income play with its 6x P/E and 4.5% dividend, and CARS represents a cyclical rebound contingent on improving consumer demand.
• Despite the bullish analyst targets suggesting over 35% upside, the fact that CARS and OPFI remain 40% below their 52-week highs indicates notable volatility; therefore, it is prudent to monitor key macroeconomic indicators like interest rate trends and consumer spending data that underpin the rebound thesis.