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2 High-Growth Stocks to Buy for Value: ADRNY, KALU

Hailing from the consumer products and industrial products sectors, respectively, Ahold (ADRNY - Free Report)  and Kaiser Aluminum (KALU - Free Report)  are emerging as two high-growth stocks that offer sound value.

Setting the stage to discuss their favorable growth trajectories, Ahold and Kaiser stock trade under 16X forward earnings and at just 0.3X forward sales.

Additionally, both offer generous dividends, with Ahold’s expansion as an operator of retail stores starting to stand out, while Kaiser has strengthened its position as a leading producer of semi-fabricated aluminum products.

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Ahold’s “Growing Together” Strategy

Expanding rapidly under its “Growing Together” strategy, an outline of ambitious goals through 2028, Ahold has focused on delivering affordable food and non-food products at its locations throughout the U.S. and Europe.

Operating supermarkets, convenience stores, and gas stations, Ahold has prioritized its own-brand development, with an emphasis on healthy food options and a more effective supply chain. Furthermore, Ahold’s supermarket subsidiary, Albert Heijn, controls the majority of the market share in the Netherlands (37%), with Stop & Shop and Food Lion having an increasing presence in the Eastern United States.

Ahold’s specific financial targets include driving up omnichannel loyalty sales penetration to 80% by 2028, targeting 30 million monthly active users, along with an overall 4% net sales CAGR, and high-single digit EPS growth. Notably, Ahold’s online sales grew by 16.5% during Q2.

 

Kaiser Target’s High-Growth Markets

Kaiser’s continued expansion is attributed to its concentration on providing products and parts to high-growth markets like the aerospace, automotive, general engineering, and packaging industries. It’s also noteworthy that Kaiser has administered major upgrades to new facilities that will boost capacity for aerospace and general engineering heat-treated plate products.

Kaiser’s business model positions the company to earn profits from converting aluminum rather than speculating on raw material prices by emphasizing metal price neutrality, a business strategy of implementing value-added services rather than buying and selling metals.

 

Ahold & Kaiser’s Growth Trajectories

Based on Zacks' estimates, Ahold’s total sales are expected to be up 13% in fiscal 2025 and are projected to increase another 2% in FY26 to $111.54 billion. On pace to uphold its high single-digit EPS growth target, Ahold’s annual earnings are currently slated to increase 11% in FY25 and are projected to rise another 9% in FY26 to $3.33 per share. Plus, FY26 projections would reflect more than 20% growth on Ahold’s top and bottom lines in the last five years.

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Turning to Kaiser, its top line is expected to expand 15% this year and is projected to stretch another 19% in FY26 to $4.12 billion. More impressive, Kaiser’s EPS is slated to soar 85% in FY25 to $4.64 from $2.51 a share last year. Even better, FY26 EPS is projected to climb another 35% to $6.28.

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Ahold & Kaiser’s Generous Dividends

Perhaps the crème on top in regard to considering these high-growth value stocks is that Ahold and Kaiser have very generous annual dividend yields of 3.01% and 4.21%, respectively.

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Bottom Line

Emphasizing the notion that now is an ideal time to buy Ahold and Kaiser stock is that they are benefitting from a positive trend of earnings estimate revisions for fiscal 2025 and FY26. At the moment, Ahold’s stock boasts a Zacks Rank #1 (Strong Buy), with Kaiser’s sporting a Zacks Rank #2 (Buy). Both stocks also check an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.


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