This is a Great Stock to Buy From Every Angle…

No doubt you recognize the famous Dolby brand which has been enhancing sound for all forms of movie and TV entertainment over the years. The healthy foundation of that software business is one good reason to like Dolby Laboratories (DLB) at this time. 

However, as we dig in deeper there are new growth drivers that shine a light on some very attractive upside for these shares. On top of that is our exclusive AI factor that sees the markers of a timely stock ready to rise now. 

Let’s tune in for the full story. 

Management has ignited a turnaround after a few years of soft results. Part of this turnaround is expanding into new markets that use their audio software including voice conferencing and automobiles. Plus much of that recent growth has come from expansion into the video game market where the top releases often make more money than a top box office movie.

The benefit of these new directions has led to some serious earnings acceleration which was quite evident in the 20.3% earnings beat from August 2024. This event sparked a nice round of outperformance for shares that continues into early 2025. 

These investments in growth are fairly easy to do as the company has a large stockpile of almost $900 million in cash ($9.11 per share). And wouldn't be surprised if management has more growth ideas in store in the years ahead. 

The Zen Ratings, with its full 115 factor analysis of every company, has most certainly tuned into the quality fundamentals of DLB. Not only is the stock an A overall, but actually in the top 3% of all stocks analyzed.

There really is no weakness in DLB’s make up as you scan the 7 component grades. The lowest showing is still being in the top 29% for Momentum. No shame in that game. 

Where it really shines is the scores for Value, Safety and especially AI where it is in the top 3.6% of the 4,600 stocks reviewed by the quant model. 

The best part of the high AI score is how often it points to timely stocks ready to bolt higher in the near term. To get the full story on the benefit of our AI rating, then read this recent article:

How Can AI Help My Stock Investing?

Top Wall Street analysts are also tuning into what makes Dolby a special investment. This includes James Goss of Barrington Research (top 14% performance of all analysts) who has affixed a $100 target on shares.

But what I love the most about investing in Dolby is the LACK of analyst coverage. 

Given my nearly 20 years at Zacks Investment Research we proved that low coverage stocks with strong fundamentals will get more coverage over time. Each time a new analyst joins with a Buy recommendation the stock price pops. Especially if one of the big firms like Goldman gets on board and then shares bolt 5-10% very quickly.

The point is that analysts are fundamentally driven...so too is the Zen Ratings. This gives us a decided advantage to catch wind of quality stocks before Wall Street wakes up to the news. And when they do, our shares soar.

For all those reasons and more I want us to download this audio software stock into our portfolio today. 

What To Do Next?

Dolby Laboratories (DLB) is just one of the timely stocks found in my Zen Investor portfolio.

We are harnessing the power of the Zen Ratings model as well as tapping top Wall Street analyst recommendations to find more stocks with 100%+ upside potential. 

If that is of interest to you, then please click below…

Discover the Zen Investor portfolio & top stocks now >

p.s. On Wednesday February 5th I will be adding the next 2 buy recommendations to the portfolio. So now is the perfect time to get on board.  

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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