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Zacks Value Trader Highlights: Great Lakes Dredge & Dock, HanesBrands, Lands' End, Phibro Animal Health and Wolverine World Wide
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For Immediate Release
Chicago, IL – July 22, 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/2305580/how-to-invest-in-small-cap-value-stocks-in-2024)
How to Invest in Small-Cap Value Stocks in 2024
Welcome to Episode #375 of the Value Investor Podcast.
(0:20) - Is Now A Good Time To Invest Into Small Cap Stocks?
(3:00) - Two Value ETFs To Consider For Your Portfolio
(14:00) - Tracey’s Top Stock Picks
(27:15) - Episode Roundup: GLDD, HBI, LE, PAHC, WWW
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Even as the large cap indexes seemingly hit new highs nearly every day in 2024, the small caps have lagged. The Russell 2000 is up just 9.2% in 2024 compared to the S&P 500 gaining 16.6%.
Over the last 2 years, while the S&P 500 has gained 39.6%, the Russell is up just 21.7%.
The underperformance extends over the last 5 years as well. The Russell has gained 42% while the S&P 500 is up 86%.
With that kind of underperformance, is it any surprise that most investors have been ignoring the small caps?
Many of them have gotten cheap. If you want to find value stocks, the small caps is the place to look.
Should You Buy the Small Cap Value ETFs?
The easiest way to buy small cap value stocks is to buy a basket of them in an ETF. Tracey has covered various small cap value ETFs over the years on the podcast.
For the most basic ETFs, investors can buy the Small Cap 600 Value ETF or Vanguard Small Cap Value Index Fund. Tracey discusses both on the podcast.
But many investors still want to buy those individual stocks. There is still excitement at uncovering a company and getting in when it's still small and unknown. But how do you find good quality small cap stocks?
Screening for Small Caps with Big Growth
Zacks has several premium screens on Zacks.com for small cap stocks, including one with both growth and value.
It looks for earnings growth over 20% but the company must also have a P/S ratio under 1.0. A P/S ratio under 1.0 usually indicates a company is undervalued. A P/S ratio of 0.7, for example, means an investor is paying just $0.70 for every $1.00 of sales.
This screen also looked for company with a market cap of $2 billion or less and a top Zacks Rank of #1 (Strong Buy) or #2 (Buy).
Great Lakes Dredge & Dock is the largest provider of dredging services in the United States. It operates 200 specialized vessels. Great Lakes Dredge & Dock has a market cap of $625 million.
Shares of Great Lakes Dredge & Dock are up 15.8% year-to-date. It's still cheap with a forward P/E of 12.6.
Should Great Lakes Dredge & Dock be on your value stock short list?
HanesBrands makes everyday apparel under the brands Hanes, Champion, Bonds, Maidenform and Bali. However, it entered into an agreement to sell Champion in June 2024. HanesBrands has a market cap of $1.86 billion.
Shares of HanesBrands are up 19.3% year-to-date but took a tumble over the last 5-years, falling 67.8%. It's cheap, with a forward P/E of 11.9.
Should HanesBrands be on your value stock short list?
Lands' End is a digital retailer of apparel, accessories and footwear. It also operates some brick-and-mortar stores. Lands' End has a market cap of $543 million.
Shares of Lands' End have soared 77% year-to-date. It's not cheap on a P/E basis with a forward P/E of 56 but it has a P/S ratio of just 0.4.
Should Lands' End be on your value stock short list?
Phibro Animal Health is an animal health and mineral nutrition company with 780 product lines in over 80 countries. It has a market cap of $771 million.
Shares of Phibro Animal Health have jumped 61% in 2024 but are still down 63% over the 5-year period. It has a forward P/E of just 13.2.
Should Phibro Animal Health be on your value stock short list?
Wolverine World Wide is a marketer and licensor of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. It's portfolio includes Merrell, Sweaty Betty, Hush Puppies and Stride Rite. Wolverine World Wide has a market cap of $1.04 billion.
Shares of Wolverine World Wide have jumped 52% in 2024 but over the last 5 years, they are still down 69%. It's cheap with a forward P/E of 15.9.
Should Wolverine World Wide be on your value stock short list?
What Else Should You Know About Small Cap Value Stocks?
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: Great Lakes Dredge & Dock, HanesBrands, Lands' End, Phibro Animal Health and Wolverine World Wide
For Immediate Release
Chicago, IL – July 22, 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/2305580/how-to-invest-in-small-cap-value-stocks-in-2024)
How to Invest in Small-Cap Value Stocks in 2024
Welcome to Episode #375 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.
Even as the large cap indexes seemingly hit new highs nearly every day in 2024, the small caps have lagged. The Russell 2000 is up just 9.2% in 2024 compared to the S&P 500 gaining 16.6%.
Over the last 2 years, while the S&P 500 has gained 39.6%, the Russell is up just 21.7%.
The underperformance extends over the last 5 years as well. The Russell has gained 42% while the S&P 500 is up 86%.
With that kind of underperformance, is it any surprise that most investors have been ignoring the small caps?
Many of them have gotten cheap. If you want to find value stocks, the small caps is the place to look.
Should You Buy the Small Cap Value ETFs?
The easiest way to buy small cap value stocks is to buy a basket of them in an ETF. Tracey has covered various small cap value ETFs over the years on the podcast.
For the most basic ETFs, investors can buy the Small Cap 600 Value ETF or Vanguard Small Cap Value Index Fund. Tracey discusses both on the podcast.
But many investors still want to buy those individual stocks. There is still excitement at uncovering a company and getting in when it's still small and unknown. But how do you find good quality small cap stocks?
Screening for Small Caps with Big Growth
Zacks has several premium screens on Zacks.com for small cap stocks, including one with both growth and value.
It looks for earnings growth over 20% but the company must also have a P/S ratio under 1.0. A P/S ratio under 1.0 usually indicates a company is undervalued. A P/S ratio of 0.7, for example, means an investor is paying just $0.70 for every $1.00 of sales.
This screen also looked for company with a market cap of $2 billion or less and a top Zacks Rank of #1 (Strong Buy) or #2 (Buy).
The screen returned 23 stocks.
5 Small Cap Value Stocks with Big Growth
1. Great Lakes Dredge & Dock Corp. (GLDD - Free Report)
Great Lakes Dredge & Dock is the largest provider of dredging services in the United States. It operates 200 specialized vessels. Great Lakes Dredge & Dock has a market cap of $625 million.
Shares of Great Lakes Dredge & Dock are up 15.8% year-to-date. It's still cheap with a forward P/E of 12.6.
Should Great Lakes Dredge & Dock be on your value stock short list?
2. HanesBrands (HBI - Free Report)
HanesBrands makes everyday apparel under the brands Hanes, Champion, Bonds, Maidenform and Bali. However, it entered into an agreement to sell Champion in June 2024. HanesBrands has a market cap of $1.86 billion.
Shares of HanesBrands are up 19.3% year-to-date but took a tumble over the last 5-years, falling 67.8%. It's cheap, with a forward P/E of 11.9.
Should HanesBrands be on your value stock short list?
3. Lands' End, Inc. (LE - Free Report)
Lands' End is a digital retailer of apparel, accessories and footwear. It also operates some brick-and-mortar stores. Lands' End has a market cap of $543 million.
Shares of Lands' End have soared 77% year-to-date. It's not cheap on a P/E basis with a forward P/E of 56 but it has a P/S ratio of just 0.4.
Should Lands' End be on your value stock short list?
4. Phibro Animal Health Corp. (PAHC - Free Report)
Phibro Animal Health is an animal health and mineral nutrition company with 780 product lines in over 80 countries. It has a market cap of $771 million.
Shares of Phibro Animal Health have jumped 61% in 2024 but are still down 63% over the 5-year period. It has a forward P/E of just 13.2.
Should Phibro Animal Health be on your value stock short list?
5. Wolverine World Wide, Inc. (WWW - Free Report)
Wolverine World Wide is a marketer and licensor of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel. It's portfolio includes Merrell, Sweaty Betty, Hush Puppies and Stride Rite. Wolverine World Wide has a market cap of $1.04 billion.
Shares of Wolverine World Wide have jumped 52% in 2024 but over the last 5 years, they are still down 69%. It's cheap with a forward P/E of 15.9.
Should Wolverine World Wide be on your value stock short list?
What Else Should You Know About Small Cap Value Stocks?
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.