Zacks Investment Ideas feature highlights: The ONE Group Hospitality and Legacy Education

For Immediate ReleaseChicago, IL – July 9, 2025 – Today, Zacks Investment Ideas feature highlights The ONE Group Hospitality STKS and Legacy Education Inc. LGCY.2 Small-Cap Stocks that Appear Ready to SurgeAfter a rather choppy start to the year, the broader market has firmed up significantly, as fears over geopolitical tensions and slowing economic growth begin to ease. With sentiment shifting back to “risk-on,” selective small-cap stocks appear to offer exceptional upside opportunity from current levels, most notably those with strong growth forecasts, favorable valuations, and top Zacks Ranks.Two names in particular, The ONE Group Hospitality and Legacy Education Inc., stand out as breakout candidates, each showing signs of building momentum ahead of potential major bull runs.The ONE Group Hospitality: Shares Trade at a Discount to GrowthThe ONE Group Hospitality, operator of upscale restaurant brands like STK and Kona Grill, is benefiting from a renewed appetite for in-person dining. After years of volatility and pandemic-related challenges, it appears that “peak takeout” has passed and consumers are returning to restaurants, especially experiential, high-energy venues like those operated by STKS.The company has recently flipped from negative to positive earnings, marking a significant inflection point. Analysts have responded with sharp upward revisions to estimates: earnings projections for the current year have jumped from a loss of -$0.31 to a gain of $0.51, while next year’s forecast has risen from -$0.08 to $0.69. Not surprisingly, the stock boasts a Zacks Rank #1 (Strong Buy) rating. STKS trades at just 9.3x forward earnings, a compelling valuation for a company expected to grow EPS at a 20% annual clip over the next three to five years.Technically, the chart looks extremely promising. STKS has spent the beginning of the year building a solid base and has already broken out twice, forming a stair-step pattern higher. Currently, it appears to be carving out a bullish continuation pattern. As long as the stock holds above the $4.70 support level and clears resistance at $5.13, it could be poised for a powerful rally as the market re-rates this underappreciated small-cap growth story.Legacy Education Inc.: Stock Forming a Bull FlagLegacy Education Inc. operates in the growing field of healthcare education and workforce development, with a focus on training programs for high-demand medical roles. As a provider of healthcare training, Legacy benefits from a steady stream of demand, even in slower economic cycles, making it a somewhat recession-resistant growth play.The company is showing strong momentum on both the earnings and technical front. It currently holds a Zacks Rank #2 (Buy) and trades at a reasonable 17.1x forward earnings, offering an appealing valuation for a business with this growth profile. Analysts expect sales to rise 37.9% this year and another 16.9% in 2026, reflecting very impressive growth expectations.I highlighted LGCY stock a couple of weeks ago, and it has since broken out to new record high prices. Following the breakout, it has begun to form a compelling technical bull flag, a continuation setup that, if confirmed with a move above the $11 level, could trigger another leg higher.Should Investors Buy Shares in LGCY and STKS?With the broader market returning to a risk-on footing and small-cap stocks starting to show signs of life, The ONE Group Hospitality and Legacy Education Inc. stand out as compelling opportunities. Both companies are backed by strong earnings growth forecasts, reasonable valuations, improving technical setups, and rising analyst sentiment.For investors looking to uncover under-the-radar growth stories with breakout potential, both of these small-cap names deserve a close look. If the charts confirm their next leg higher, STKS and LGCY could be among the early leaders in a broader small-cap resurgence.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Legacy Education Inc. (LGCY): Free Stock Analysis Report The ONE Group Hospitality, Inc. (STKS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks