3 Stocks Flexing Sexy Balance Sheets

Financials are boring, but they can potentially lead to sexy gains. 

That’s an important lesson to remember at any time — but particularly during volatile market conditions.

No matter what your motivation to seek out greater safety, there are options. 

While we have the Safety Component Grade for this, we also want to focus on another aspect: a company's financial foundations as reflected in the Financials Component Grade. These factors can indicate a company's long-term value potential and its ability to handle shocks and uncertainty (both of which are in ample supply).

Here are 3 A-rated stocks with a Component Grade of A in Financials. Note that stocks with a Zen Rating of A are in the top 5% of stocks we cover, and have an average annual return of +28.50%.

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1. Enerpac Tool Group (NYSE: EPAC)

Providing a variety of services and tools and operating internationally, EPAC is a specialty industrial machinery company (with another segment that designs and manufactures synthetic ropes and biomedical assemblies) that might not be getting the most attention, but perhaps should.

Based on its Component Grades, EPAC is a rare combination: both a value proposition and a safer option than most stocks. It also maintains the strong financial foundation we discussed earlier. It’s surpassing estimates, handling industry difficulties well, and may potentially be an excellent long-term proposition for the right portfolio.

2. CTS Corp (NYSE: CTS)

Manufacturing vital electronic components for IT, telecommunications, and vehicles, CTS Corp is another company that may not get the most attention but fills a growing need in a more tech-reliant world.

While its share price has recently dropped, the year has been kind to CTS Corp, and overall trends have been strong. Now might be the time to buy the dip for the long term. Given the strong Component Grades of B for Value, Momentum, and Sentiment, it’s clear there’s still backing and confidence behind the stock.

Smith and Wesson Brands (NASDAQ: SWBI)

While it does not have the same Safety Component Grade as the other stocks, SWBI has other advantages. Its products will be in demand for the foreseeable future, and always have been. It has a strong dividend, an excellent last 12 months (+79.95% share price increase), and a type of security only something like the Defense industry can provide.

Investors will want to watch ongoing news and political tides as usual and whether SWBI maintains its strong financial foundations.

Want to learn more about these stocks or track them more easily? Then you want WallStreetZen Premium. With it, you’ll get an unlimited watchlist, all the fundamental information you might need, access to premium Stock Ideas pages, and more. It’s perfect for anyone looking to fine-tune their portfolio.

Are you looking for a more guided approach? Worried about keeping up with every last market shift and news story? Then Zen Investor is for you. With it, you’ll receive regular commentary and access to live webinars from our own Steve Reitmeister, who has more than 40 years of investing experience under his belt. Additionally, you’ll receive access to a hand-picked model portfolio created with not only experience but the Zen Ratings system.

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