The latest POWR Ratings are in. More than a dozen stocks have been upgraded to A grades, indicating they are Strong Buys. As long as the delta variant of COVID-19 is held in check, investors can look forward to many more stock upgrades in the weeks and months ahead.

It is simply not practical for investors to purchase every single stock upgraded to a Strong Buy. However, handpicking a couple of superstar stocks as soon as they are elevated to Strong Buys is certainly reasonable.

Below, I provide a look at three of the latest stocks upgraded in the POWR Ratings. Those stocks are as follows: Vista Outdoor (VSTO), Volkswagen AG (VWAGY), and Starbux (SBUX).

Vista Outdoor (VSTO)

VSTO develops, makes, and distributes optics, eyewear, and accessories. VSTO operates in the Outdoor Products and Shooting Sports segments. Step foot into a VSTO store, and you will find sports eyewear, protective eyewear, targets, reloading equipment, powder, gun care products, decoys, game calls, trail cameras, rangefinders, and more.

VSTO has a forward P/E ratio of 11.43. This ratio indicates the stock might is undervalued at its current trading price of $41.66. The stock's 52-week high is $47.62, so there is a solid argument to be made that VSTO is not priced as high as it should be, considering its low forward P/E ratio. Furthermore, VSTO has a beta of 0.42, which means it is less than half as volatile as the market. 

VSTO has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings system. The stock has grades of B in the Growth, Sentiment, and Value components. You can find out how VSTO fares in the rest of the components such as Momentum, Quality, and Stability by clicking here. Of the 35 publicly traded companies in the A-rated Athletics & Recreation industry, VSTO is ranked in the top five, slotting in at third overall. Click here to find other top stocks in this space.

Volkswagen AG (VWAGY)

VWAGY is Europe's largest auto manufacturer. The company's emissions scandal from several years prior is squarely in the rearview mirror, pun intended. VWAGY has nine independent auto brands, providing consumers and businesses with a plethora of automobile choices.

VWAGY has an overall grade of A and a Strong Buy rating in our POWR Ratings system. The stock shines particularly bright in the Momentum, Value, and Stability components of the POWR Ratings where it scores a B grade. Click here to find out how VWAGY fares in the Growth, Quality, and Sentiment components.

Out of 57 publicly traded companies in the Auto & Vehicle Manufacturers industry, VWAGY is ranked 4th. You can find other top-ranked stocks in this industry by clicking here. VWAGY has a forward P/E ratio of 9.85. This low ratio is a positive sign as it indicates the stock is undervalued. 

Click here to check out our Automotive Industry Report for 2021

Starbux (SBUX)

SBUX, one of the world's top coffee companies, has been around since the mid-80s. Though SBUX's rich and bold coffee isn't exactly cheap and has the potential to disturb sensitive stomachs, it is insanely popular across the globe. SBUX brands include Seattle's Best Coffee, Teavana tea, Evolution Fresh juice, and La Boulange bakery items.

SBUX is in the midst of a partial pivot that emphasizes carry-out and drive-thru service in an attempt to reduce overhead expenses, satisfy the massive millennial age cohort, and grow the company as social distancing continues. The stock has an overall grade of A, translating into a Strong Buy rating in our POWR Ratings system. It has a grade of A in the Quality and Growth components and Bs in the Sentiment and Momentum components. You can find out how SBUX fares in the Stability and Value components by clicking here.

Of the nearly 50 stocks in the Restaurant industry, SBUX is ranked second. Click here to find other top stocks in this industry. Analysts have set an average target price of $126.37 for SBUX, indicating it still has more upside to go. In fact, one analyst set a $148 price target for SBUX.

VSTO shares were trading at $41.39 per share on Tuesday morning, up $0.10 (+0.24%). Year-to-date, VSTO has gained 74.20%, versus a 17.84% rise in the benchmark S&P 500 index during the same period.

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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