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Welcome to Episode #347 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
With stocks weak again, now is a good time to run screens to uncover top value stocks. But this week, Tracey didn’t have much success with the first screen she chose. Nor the second. It wasn’t until the third screen that she got stocks she “liked.”
Zacks Predefined Premium Screens
Zacks screening tool has “basic” predefined screens, which are free, and “premium” screens which aren’t. You need a Zacks premium account to access those screens, which are more advanced than the free basic ones, unless you listen to this podcast.
Tracey has access to the premium screens and runs 3 of them for this podcast.
The first is called “Fast Paced Momentum at a Bargain” which produces 12 stocks. The second is “Underfollowed Gems” which produces a list of 11 stocks. But Tracey wasn’t satisfied with the stock selection on those two screens.
The best screen this week, in Tracey’s opinion, was “Growth and Value Stocks Plus the #1 Rank.” This screen gave 19 matches.
Ryder has been a value stock for some time but it has also been a solid performer in 2023. It was in the screen on Momentum at a Bargain. Shares of Ryder are up 23.4% year-to-date and are up 15% over the last 12 weeks.
Ryder has a forward P/E of just 7.9. It also pays a dividend yielding 2.7%. Zacks Value Investor newsletter owns Ryder in its portfolio.
Investors looking for a momentum stock which is also cheap should keep Ryder on their short list.
Steelcase is a Zacks Rank #1 (Strong Buy) that was in the Underfollowed Gems screen. Zacks.com only has one estimate for the company, so it is little followed. But for 2023, earnings are expected to rise 32.1% over last year.
Shares of Steelcase have jumped 52.5% year-to-date but it’s still cheap with a forward P/E of just 15. Steelcase also pays a dividend, currently yielding 3.6%.
JPMorgan Chase is back to being a Zacks Rank #1 (Strong Buy) again. Shares are up 9.3% year-to-date. But it’s cheap with a forward P/E of just 9 and a P/B of 1.5. For banks, value investors should look for P/B ratios between 1.0 and 2.0.
But JPMorgan Chase also has growth. It showed up in the Growth and Value Stocks Plus the #1 Rank screen. This year, earnings are expected to jump 36.4%.
JPMorgan Chase also pays a dividend, currently yielding 2.9%.
Is it time to consider the banks, and JPMorgan Chase, again?
American Eagle Outfitters is a niche retailer of clothing and accessories. With worries about a recession, you’d think most investors would stay away from the retail stocks but American Eagle Outfitters is up 27% year-to-date.
It’s cheap, with a forward P/E of 14, and it has growth, with earnings expected to jump 33% this fiscal year.
To top it off, American Eagle Outfitters also is a #1 Rank (Strong Buy) stock.
Should value investors dive into retailers like American Eagle Outfitters before the upcoming holiday season?
Skechers is a global shoe retailer. Shares of Skechers are up 16.3% year-to-date, which is outperforming the S&P 500, up 12.4%.
Shoes appear to be a good place to be in 2023 as earnings are expected to rise 42.2% this fiscal year. Skechers also has an attractive forward P/E ratio of just 14.9. The growth and low P/E combine for a PEG ratio of just 0.5. A PEG ratio under 1.0 usually means a company has both growth and value.
Skechers will report earnings on Oct 26, 2023.
Should a shoe retailer be on your watch list this fall?
What Else Do You Need to Know About Screening for Cheap Stocks?
Tune into this week’s podcast to find out.
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3 Value Stock Screens: Which One is Best?
Welcome to Episode #347 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
With stocks weak again, now is a good time to run screens to uncover top value stocks. But this week, Tracey didn’t have much success with the first screen she chose. Nor the second. It wasn’t until the third screen that she got stocks she “liked.”
Zacks Predefined Premium Screens
Zacks screening tool has “basic” predefined screens, which are free, and “premium” screens which aren’t. You need a Zacks premium account to access those screens, which are more advanced than the free basic ones, unless you listen to this podcast.
Tracey has access to the premium screens and runs 3 of them for this podcast.
The first is called “Fast Paced Momentum at a Bargain” which produces 12 stocks. The second is “Underfollowed Gems” which produces a list of 11 stocks. But Tracey wasn’t satisfied with the stock selection on those two screens.
The best screen this week, in Tracey’s opinion, was “Growth and Value Stocks Plus the #1 Rank.” This screen gave 19 matches.
What Top Ranked Stocks are Cheap?
1. Ryder System, Inc. (R - Free Report)
Ryder has been a value stock for some time but it has also been a solid performer in 2023. It was in the screen on Momentum at a Bargain. Shares of Ryder are up 23.4% year-to-date and are up 15% over the last 12 weeks.
Ryder has a forward P/E of just 7.9. It also pays a dividend yielding 2.7%. Zacks Value Investor newsletter owns Ryder in its portfolio.
Investors looking for a momentum stock which is also cheap should keep Ryder on their short list.
2. Steelcase Inc. (SCS - Free Report)
Steelcase is a Zacks Rank #1 (Strong Buy) that was in the Underfollowed Gems screen. Zacks.com only has one estimate for the company, so it is little followed. But for 2023, earnings are expected to rise 32.1% over last year.
Shares of Steelcase have jumped 52.5% year-to-date but it’s still cheap with a forward P/E of just 15. Steelcase also pays a dividend, currently yielding 3.6%.
Should Steelcase be on your watch list?
3. JPMorgan Chase & Co. (JPM - Free Report)
JPMorgan Chase is back to being a Zacks Rank #1 (Strong Buy) again. Shares are up 9.3% year-to-date. But it’s cheap with a forward P/E of just 9 and a P/B of 1.5. For banks, value investors should look for P/B ratios between 1.0 and 2.0.
But JPMorgan Chase also has growth. It showed up in the Growth and Value Stocks Plus the #1 Rank screen. This year, earnings are expected to jump 36.4%.
JPMorgan Chase also pays a dividend, currently yielding 2.9%.
Is it time to consider the banks, and JPMorgan Chase, again?
4. American Eagle Outfitters, Inc. (AEO - Free Report)
American Eagle Outfitters is a niche retailer of clothing and accessories. With worries about a recession, you’d think most investors would stay away from the retail stocks but American Eagle Outfitters is up 27% year-to-date.
It’s cheap, with a forward P/E of 14, and it has growth, with earnings expected to jump 33% this fiscal year.
To top it off, American Eagle Outfitters also is a #1 Rank (Strong Buy) stock.
Should value investors dive into retailers like American Eagle Outfitters before the upcoming holiday season?
5. Skechers U.S.A., Inc. (SKX - Free Report)
Skechers is a global shoe retailer. Shares of Skechers are up 16.3% year-to-date, which is outperforming the S&P 500, up 12.4%.
Shoes appear to be a good place to be in 2023 as earnings are expected to rise 42.2% this fiscal year. Skechers also has an attractive forward P/E ratio of just 14.9. The growth and low P/E combine for a PEG ratio of just 0.5. A PEG ratio under 1.0 usually means a company has both growth and value.
Skechers will report earnings on Oct 26, 2023.
Should a shoe retailer be on your watch list this fall?
What Else Do You Need to Know About Screening for Cheap Stocks?
Tune into this week’s podcast to find out.