3 Overlooked Stocks Analysts Still Like as AI Trades Get Crowded

Key Points

• JBS is benefiting from global protein demand and diversified operations despite pressure in North American beef.
• Primis Financial is showing stronger profitability, margin improvement and better asset quality.
• Arcos Dorados gives investors exposure to McDonald’s demand in Latin America at a relatively low valuation.

Mega-cap tech stocks remain in the headlines even as the AI industry has experienced turbulence in recent weeks, but many analysts have turned elsewhere for compelling opportunities with lesser-known companies. Those investors willing to look past the market's most popular names may still find businesses with strong earnings momentum, meaningful upside potential, and reasonable valuations.

Three companies that analysts favor and that may be worth a closer look include JBS S.A. NYSE: JBS, Primis Financial Corp. NASDAQ: FRST, and Arcos Dorados Holdings Inc. NYSE: ARCO. Representing a wide variety of industries, these firms nonetheless share an important characteristic: Wall Street analysts see attractive upside potential despite their affordability for investors.

JBS Remains a Meat Winner Despite North American Challenges

Brazilian meat production and processing giant JBS likely doesn't receive the same investor attention as many domestic consumer staples firms, but it has become an increasingly attractive play as global protein demand has stayed strong even despite significant rises in prices. Because JBS also has a diversified approach, including multiple geographic regions and a wide variety of foods, it is somewhat protected from risks in a single market or product category.

Even with negative EBITDA and a constrained cattle cycle in its North American beef business early in the year, JBS generated record Q1 2026 net sales of nearly $22 billion and net income of about $222 million. The company does face free cash flow concerns—this metric was negative at $1.5 billion in Q1, although the first quarter of the year typically experiences downward pressures here due to a variety of annual payments—but overall, its balance sheet is improving as it extends its debt maturity and maintains liquidity.

Nonetheless, JBS has attracted strong interest from institutional investors, which have poured some $4.2 billion into the stock in the last 12 months. This is all while trading at 8.6x earnings amid tens of billions of dollars of annual revenue generation, and while analysts expect earnings growth to continue into the year ahead. This may be why Wall Street remains very optimistic about JBS going forward: the stock has six Buy ratings compared to just two Holds, plus 37% in upside potential.

A Standout Regional Bank With Financial Improvements Across Categories

The holding company behind Georgia's Primis Bank remains overlooked as many investors have turned away from regional banks, but that does not mean that Primis Financial isn't worth consideration. The firm has simplified its balance sheet considerably in recent years, improving underwriting standards, and has focused on higher-quality opportunities for lending.

This is reflected in a variety of strong points in the company's Q2 2026 earnings, including sustained improvement in revenue and margin (net interest margin rose to 3.45% for the quarter, while core revenue reached $50 million for the first time). Net earnings were up significantly over the prior-year period, even as earnings per share (EPS) fell short of analyst estimates. The company's deposit mix is strong, as non-interest-bearing deposits have grown while total funding costs have stayed low.

FRST shares trade at 7.5x earnings, a multiple far lower than many other stocks in the financials space. Analysts also expect significant earnings growth of 24% or more in the coming year, a compelling reason why three out of four ratings for FRST are Buys.

Arcos Dorados Is a Major McDonald's Franchisee Investors Often Overlook

Although hardly a household name, Arcos Dorados has a hand in the success of one of the most popular brands in the world: McDonald's Corp. NYSE: MCD. Arcos is a major McDonald's franchisee, operating a wide network of locations throughout Latin America and the Caribbean.

As digital ordering and production capabilities expand, keeping costs down, and as customers continue to seek out trusted brands selling at competitive prices, Arcos has the potential to capitalize. The company's recent financial performance has helped to back up that narrative—Q1 2026 revenue and profitability reached all-time quarterly records, with revenue surging 13% year over year (YOY) and adjusted EBITDA rising significantly as well. With Brazil one of the company's largest and fastest-growing markets, and given lower beef costs there relative to other regions, Arcos has not been as negatively impacted by rising prices as many other companies in a similar line of work.

Even still, ARCO shares trade at 7.5x earnings, well below many other major restaurant operators. The appeal of this company—access to international consumer exposure at a low valuation—has resonated with several analysts. The stock has four Buy ratings and a single Hold, and Wall Street anticipates almost 26% in potential upside.

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