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Zacks Value Trader Highlights: BASF, Ford Motor, KB Home, PVH and Universal Health Services
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For Immediate Release
Chicago, IL – July 1, 2024 – 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/2295210/5-top-ranked-classic-value-stocks-for-june-2024)
Top Ranked Classic Value Stocks
Welcome to Episode #373 of the Value Investor Podcast.
(1:00) - Running a Stock Screen For Strong Value Stocks
(8:40) - Tracey’s Top Picks For Your Portfolio Right Now
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The large cap indexes are hitting new all-time highs again driven by new highs in the Magnificent 7 stocks. None of those stocks are cheap and many other growth stocks seem stretched on valuations as well.
Are there ANY classic value stocks out there right now?
What Are Classic Value Stocks?
There is a difference between your basic value stock, which might mean a low P/E or P/S ratio and "classic" value. Classic value is defined as having low ratios in ALL five of the value ratios including P/E, P/S, P/B, P/CF and the PEG ratio.
This is going to be a much smaller group of stocks with that many fundamentals thrown together. It's hard enough to get a low P/E or a P/S ratio under 1.0. But to have five different fundamentals dirt cheap is tough.
Screening for Classic Value Stocks
Zacks has a fantastic premium screen that combines all five fundamentals with the top Ranks of #1 (Strong Buys) and #2 (Buys) and the top Value Style Scores of A and B.
It also looks for stocks over $5 a share because we don't want penny stocks.
This is a very narrow screen that has usually returned anywhere from 5 to 20 stocks over the years.
This screen returned 16 stocks this time even with the indexes hitting new highs.
BASF's company tag line is "We create chemistry." This global, large cap chemical company is dirt cheap.
BASF has a forward P/E of 14.2 and a PEG ratio of just 0.99. That PEG ratio gets it into the screen just under the line as it looks for a PEG of 1.0 or less.
BASF also pays a dividend which is yielding 5.2% on Zacks.com and 7.3% on YahooFinance.
Should a chemical company like BASF be on your value stock watch list?
Ford has been a cheap stock for several years. It trades with a forward P/E of just 6. But it also has a PEG ratio of just 0.78. Growth and value is a powerful combination.
KB Home is one of the large national homebuilders. Homebuilders have been cheap stocks all year even as the shares have rallied. KB Home has a forward P/E of 8.4 and a PEG ratio of 0.7.
It also pays a dividend, yielding 1.4%.
Is it too late to buy the homebuilders like KB Home?
PVH Corp. has gotten cheaper in 2024 as the shares have fallen 10% year-to-date. PVH, a Zacks Rank #2 (Buy) stock, has a forward P/E of 10. But it still has both growth and value as it's PEG ratio is just 0.9.
PVH also pays a dividend but it's yielding just 0.1%.
Universal Health Services operates hospitals, outpatient and behavioral healthcare facilities. Shares of Universal Health Services are trading near their 52-week highs but it's still cheap with a forward P/E of 13.6. It has a PEG ratio of 0.9.
Universal Health Services also pays a dividend, yielding 0.4%. It is a Zacks Rank #2 (Buy) stock.
Should value investors have Universal Health Services on their watch list?
What Else Should You Know About Classic Value Stocks this Summer?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: BASF, Ford Motor, KB Home, PVH and Universal Health Services
For Immediate Release
Chicago, IL – July 1, 2024 – 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/2295210/5-top-ranked-classic-value-stocks-for-june-2024)
Top Ranked Classic Value Stocks
Welcome to Episode #373 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.
The large cap indexes are hitting new all-time highs again driven by new highs in the Magnificent 7 stocks. None of those stocks are cheap and many other growth stocks seem stretched on valuations as well.
Are there ANY classic value stocks out there right now?
What Are Classic Value Stocks?
There is a difference between your basic value stock, which might mean a low P/E or P/S ratio and "classic" value. Classic value is defined as having low ratios in ALL five of the value ratios including P/E, P/S, P/B, P/CF and the PEG ratio.
This is going to be a much smaller group of stocks with that many fundamentals thrown together. It's hard enough to get a low P/E or a P/S ratio under 1.0. But to have five different fundamentals dirt cheap is tough.
Screening for Classic Value Stocks
Zacks has a fantastic premium screen that combines all five fundamentals with the top Ranks of #1 (Strong Buys) and #2 (Buys) and the top Value Style Scores of A and B.
It also looks for stocks over $5 a share because we don't want penny stocks.
This is a very narrow screen that has usually returned anywhere from 5 to 20 stocks over the years.
This screen returned 16 stocks this time even with the indexes hitting new highs.
5 Top Ranked Classic Value Stocks for 2024
1. BASF SE (BASFY - Free Report)
BASF's company tag line is "We create chemistry." This global, large cap chemical company is dirt cheap.
BASF has a forward P/E of 14.2 and a PEG ratio of just 0.99. That PEG ratio gets it into the screen just under the line as it looks for a PEG of 1.0 or less.
BASF also pays a dividend which is yielding 5.2% on Zacks.com and 7.3% on YahooFinance.
Should a chemical company like BASF be on your value stock watch list?
2. Ford Motor Company (F - Free Report)
Ford has been a cheap stock for several years. It trades with a forward P/E of just 6. But it also has a PEG ratio of just 0.78. Growth and value is a powerful combination.
Ford also pays a dividend, currently yielding 5%.
Should Ford be on your value stock watch list?
3. KB Home (KBH - Free Report)
KB Home is one of the large national homebuilders. Homebuilders have been cheap stocks all year even as the shares have rallied. KB Home has a forward P/E of 8.4 and a PEG ratio of 0.7.
It also pays a dividend, yielding 1.4%.
Is it too late to buy the homebuilders like KB Home?
4. PVH Corp. (PVH - Free Report)
PVH Corp. has gotten cheaper in 2024 as the shares have fallen 10% year-to-date. PVH, a Zacks Rank #2 (Buy) stock, has a forward P/E of 10. But it still has both growth and value as it's PEG ratio is just 0.9.
PVH also pays a dividend but it's yielding just 0.1%.
5. Universal Health Services (UHS - Free Report)
Universal Health Services operates hospitals, outpatient and behavioral healthcare facilities. Shares of Universal Health Services are trading near their 52-week highs but it's still cheap with a forward P/E of 13.6. It has a PEG ratio of 0.9.
Universal Health Services also pays a dividend, yielding 0.4%. It is a Zacks Rank #2 (Buy) stock.
Should value investors have Universal Health Services on their watch list?
What Else Should You Know About Classic Value Stocks this Summer?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performancefor information about the performance numbers displayed in this press release.