We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
With the market near all-time highs and many stocks getting cheeky in the valuation department, are you looking for reasonably-priced ways to participate?
Me too! The good news is two-fold: first, the market will just keep on getting "cheekier," and second, there are still plenty of value plays around with good growth outlooks who will also participate in the 2017 rally to new highs and beyond.
To help us find some of those ideas, I ran a stock screen today called Highly Ranked Undervalued Stocks from the Zacks Premium collection.
This screen is built to sift out value stocks with strong Zacks Ranks (#1’s and #2’s), strong Zacks Value Style Scores (A’s and B’s), and solid Zacks Industry Ranks (top 50%), that are considered undervalued to their growth prospects.
When I hit the run button, the screen returned just 17 names out of thousands of potential stocks. I'm going to share 5 of them with you.
First, let's go over the criteria for selection...
Screen Parameters
Zacks Rank of 2 or better Zacks Value Style Score of B or better Zacks Industry Rank of 132 or better P/E (Trailing Twelve Months) less than 20X P/E (F1) less than 20X P/E (F2) less than 20X PEG Ratio less than 1.0 Last Close (price) over $5 Avg. 20-Day Volume over 100,000
Rising Estimates But Still Cheap
By the way, I tweaked the screen a little to give me only companies with forward P/E's under 15 instead of sub 20 multiples. Here were 5 interesting names that surfaced...
Chicago Bridge & Iron NV is a $3.3 billion construction and engineering services firm with industrial projects around the world and a particular concentration in oil & gas related development.
This Zacks #2 Rank has a Value-Growth-Momemtum (VGM) Score of A and a forward P/E just above 7. And on January 23, Citigroup raised their price target on shares to $36.
General Motors (GM - Free Report) is also a Zacks #2 Rank with a VGM Score of A. But this forward multiple slips below 6 -- and shares are paying a 4% dividend.
After a stunning 4 consecutive quarters of positive earnings surprises averaging nearly 20%, GM is poised to deliver 2016 annual EPS growth of 19.7%. The current year won't be as exciting with only 2.6% bottom line growth projected on sales of $167.4 billion, representing 1.4% annual growth.
But if the stock market makes new highs in the first half, GM will be along for the ride with that cushy divy. The mega auto machine reports on February 7.
Korn/Ferry International (KFY - Free Report) is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. With a $1.7 billion market cap and a forward P/E under 13X, it continues to look attractive in a tightening labor market.
This Zacks #2 Rank has a VGM Score of B and is projected grow EPS at 8.4% in the current fiscal year (ending in April) and 8.5% next fiscal year. The industry group of Staffing Firms is currently in the top 25% of all Zacks 265 industries and KFY is well below the average P/E of 18, with Insperity (NSP) at 19.5.
PulteGroup (PHM - Free Report) is a $7 billion premium homebuilder that just delivered strong numbers last week. For the fourth quarter, PulteGroup reported closings rose 9% to 6,197 homes, with average sales price up 11% to $ 391,000. Unit backlog increased 10% to 7,422 homes, with the value of the backlog climbing 20% to $2.9 billion.
Over all, Atlanta-based PulteGroup reported a profit of $273.2 million, or 83 cents a share, compared with $228.3 milion, or 64 cents a share, a year prior. Revenue grew over 21% to $2.49 billion from $2.06 billion. In a strong housing market, this Zacks #1 Rank trading at just 10X forward has room to move higher with the market and economy.
Western Digital (WDC - Free Report) is the $23 billion hard-drive maker we've come to know and love. Yes, even in the age of mobile we still need hard drives. And investors have been well rewarded for the past year as the stock has made a steady climb from $35 to $80.
And even thus, it still has attractive numbers like a 2.5% dividend yield and an 11.3 EPS multiple. The growth story is clearly an industry trend with Seagate Technology (STX) also a Zacks #1 with a 10X P/E and a VGM of A. They help put the Storage Device industry in the top 15%.
I hope you found some value into today's screen. I know I did.
Disclosure: I own CBI for the Zacks TAZR Trader.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Any Value Stocks Up Here?
With the market near all-time highs and many stocks getting cheeky in the valuation department, are you looking for reasonably-priced ways to participate?
Me too! The good news is two-fold: first, the market will just keep on getting "cheekier," and second, there are still plenty of value plays around with good growth outlooks who will also participate in the 2017 rally to new highs and beyond.
To help us find some of those ideas, I ran a stock screen today called Highly Ranked Undervalued Stocks from the Zacks Premium collection.
This screen is built to sift out value stocks with strong Zacks Ranks (#1’s and #2’s), strong Zacks Value Style Scores (A’s and B’s), and solid Zacks Industry Ranks (top 50%), that are considered undervalued to their growth prospects.
When I hit the run button, the screen returned just 17 names out of thousands of potential stocks. I'm going to share 5 of them with you.
First, let's go over the criteria for selection...
Screen Parameters
Zacks Rank of 2 or better
Zacks Value Style Score of B or better
Zacks Industry Rank of 132 or better
P/E (Trailing Twelve Months) less than 20X
P/E (F1) less than 20X
P/E (F2) less than 20X
PEG Ratio less than 1.0
Last Close (price) over $5
Avg. 20-Day Volume over 100,000
Rising Estimates But Still Cheap
By the way, I tweaked the screen a little to give me only companies with forward P/E's under 15 instead of sub 20 multiples. Here were 5 interesting names that surfaced...
Chicago Bridge & Iron NV is a $3.3 billion construction and engineering services firm with industrial projects around the world and a particular concentration in oil & gas related development.
This Zacks #2 Rank has a Value-Growth-Momemtum (VGM) Score of A and a forward P/E just above 7. And on January 23, Citigroup raised their price target on shares to $36.
General Motors (GM - Free Report) is also a Zacks #2 Rank with a VGM Score of A. But this forward multiple slips below 6 -- and shares are paying a 4% dividend.
After a stunning 4 consecutive quarters of positive earnings surprises averaging nearly 20%, GM is poised to deliver 2016 annual EPS growth of 19.7%. The current year won't be as exciting with only 2.6% bottom line growth projected on sales of $167.4 billion, representing 1.4% annual growth.
But if the stock market makes new highs in the first half, GM will be along for the ride with that cushy divy. The mega auto machine reports on February 7.
Korn/Ferry International (KFY - Free Report) is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. With a $1.7 billion market cap and a forward P/E under 13X, it continues to look attractive in a tightening labor market.
This Zacks #2 Rank has a VGM Score of B and is projected grow EPS at 8.4% in the current fiscal year (ending in April) and 8.5% next fiscal year. The industry group of Staffing Firms is currently in the top 25% of all Zacks 265 industries and KFY is well below the average P/E of 18, with Insperity (NSP) at 19.5.
PulteGroup (PHM - Free Report) is a $7 billion premium homebuilder that just delivered strong numbers last week. For the fourth quarter, PulteGroup reported closings rose 9% to 6,197 homes, with average sales price up 11% to $ 391,000. Unit backlog increased 10% to 7,422 homes, with the value of the backlog climbing 20% to $2.9 billion.
Over all, Atlanta-based PulteGroup reported a profit of $273.2 million, or 83 cents a share, compared with $228.3 milion, or 64 cents a share, a year prior. Revenue grew over 21% to $2.49 billion from $2.06 billion. In a strong housing market, this Zacks #1 Rank trading at just 10X forward has room to move higher with the market and economy.
Western Digital (WDC - Free Report) is the $23 billion hard-drive maker we've come to know and love. Yes, even in the age of mobile we still need hard drives. And investors have been well rewarded for the past year as the stock has made a steady climb from $35 to $80.
And even thus, it still has attractive numbers like a 2.5% dividend yield and an 11.3 EPS multiple. The growth story is clearly an industry trend with Seagate Technology (STX) also a Zacks #1 with a 10X P/E and a VGM of A. They help put the Storage Device industry in the top 15%.
I hope you found some value into today's screen. I know I did.
Disclosure: I own CBI for the Zacks TAZR Trader.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>