Back to top

Image: Bigstock

Zacks Value Trader Highlights: Exxon Mobil, Pfizer, CF Industries, Comerica, and Crocs

Read MoreHide Full Article

For Immediate Release

Chicago, IL – January 14, 2021 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

https://www.zacks.com/stock/news/1851737/the-value-investors-secret-weapon-the-peg-ratio

The Value Investor's Secret Weapon: The PEG Ratio

Welcome to Episode #264 of the Value Investor Podcast.

  • (1:00) - Value Investing Superstars: Using The Peg Ratio To Find Strong Stocks
  • (7:45) - Tracey’s Top Stock Picks
  • (21:35) - Episode Roundup: XOM, PFE, CF, CMA, CROX
  •                Podcast@Zacks.com

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

What if you could buy value stocks that also had great growth?

Does such a stock even exist?

The father of value investing, Benjamin Graham, believed it did. He was the first value investor to look for the added boost of growth when buying value stocks.

How to Screen for Value Stocks with Growth

The easiest way to find value stocks that also have growth is to use the PEG ratio.

The PEG ratio is the P/E divided by growth rate. A PEG ratio under 1.0 usually indicates that the company is undervalued but also has growth.

To narrow the screen to stocks that have rising earnings estimates, you should add the Zacks Rank of #1 (Strong Buy).

Running this screen returned 35 stocks which have the highest Zacks Ranks, value and growth.

A rare combination.

5 Stocks with Both Value and Growth

1.       Exxon Mobil (XOM - Free Report)

Exxon Mobil is a large integrated oil company.

Shares are up 52% over the last year and are at 2-year highs.

But Exxon still has a PEG ratio of just 0.8 and a P/E of 11.6. Exxon’s earnings are expected to rise 22% in 2022 to $6.16 from $5.07.

Shareholders also get Exxon’s juicy dividend, currently yielding 4.9%.

Will 2022 be another stellar year for this energy giant?

2.       Pfizer (PFE - Free Report)

Pfizer is a large pharmaceutical company which is now famous for its coronavirus vaccines.

This Zacks Rank #1 (Strong Buy) is expected to grow earnings 36.2% in 2022.

Pfizer has a PEG ratio of just 0.8.

It, too, pays a dividend, which is currently yielding 2.8%.

Shares have jumped 50% in the last year.

Does Pfizer still have more gas left in the tank?

3.       CF Industries (CF - Free Report)

CF Industries is a producer of ammonia. It promotes itself as being at the forefront of clean hydrogen and ammonia supply.

Earnings are expected to soar 246% to $12.40 in 2022 from $3.58 in 2021.

With that kind of earnings growth, it’s not surprising that CF Industries has a forward P/E of just 5.6.

Shares of CF Industries are up 60% over the last year as the fertilizer market remains tight.

Should value investors be diving in?

4.       Comerica (CMA - Free Report)

Comerica is a regional bank headquartered in Dallas, Texas with bank branches in Texas, Michigan, Arizona, California and Florida.

Earnings are expected to decline 29% in 2022, however. How is it a Zacks Rank #1 (Strong Buy)?

The analysts are bullish. 3 estimates were raised for 2022 in the last week.

Comerica has a PEG ratio of just 0.5%.

Shares are near 52-week highs, up 56% in the last year.

Can Comerica keep this momentum in 2022?

5.       Crocs, Inc. (CROX - Free Report)

Crocs makes casual footwear for men, women and children. You know their shoes. Doesn’t everyone?

Crocs were hot during the pandemic. Analysts expect revenue to rise another 20% in 2022.

Earnings are expected to rise 30% to $9.87 from $7.59 in 2021.

Shares are up 80% over the last year, but have fallen 15% in the last month on retail weakness.

That means the shares are on sale. Crocs is still cheap, with a forward P/E of just 12.8.

Is Crocs the perfect combination of value and growth in 2022?

What Else Should You Know About the PEG Ratio?

Tune into this week’s podcast to find out.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

Past 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.

Published in