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Zacks Value Investor Highlights: Borg Warner, FS Bancorp, Foot Locker, Kelly Services and Ultra Petroleum
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For Immediate Release
Chicago, IL – Jan 05, 2018 – Zacks Value Investor 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/287702/5-cheap-stocks-for-2018)
5 Cheap Stocks for 2018
Welcome to Episode #75 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Happy New Year!
It’s finally 2018 and with the change in the calendar comes a chance for investors to start with a clean slate.
That means value investors can look for value stocks with no fears that they are under performing or out of favor, because not enough time has passed yet to determine that.
Running a Basic Value Stock Screen
Tracey used a basic value screen to find the value stocks this week. There’s no reason to always get fancy.
She searched for stocks that had Zacks Ranks of #1 (Strong Buy) or #2 (Buy) so that she would, presumably, get rising earnings estimates. She combined that with a P/E under 15, which is her usual level for value stocks.
It gave her a portfolio with 165 results.
As you might imagine, most of the semiconductor stocks, which continue to be cheap, such as Micron and Lam Research, were in this screen. She ignored those names because she’s already done several podcasts in 2017 on that industry.
For 2018, it had to be some new names. She also wanted a diverse group of companies.
5 Cheap Stocks to Start the Year
1. Borg Warner (BWA - Free Report) is a large cap company operating in engines and drive train technology. It’s a partner with the auto industry in fuel economy and emissions and is making the transition to electric cars and other alternatives. It is trading with a forward P/E of just 13.4.
2. FS Bancorp (FSBW - Free Report) is a tiny community bank in the Puget Sound area of Washington state. Analysts believe it has strong credit quality. Even though it’s small, it still pays a dividend currently yielding 0.8%. It has a forward P/E of 12.9.
3. Foot Locker (FL - Free Report) is a controversial choice even though the shares are up off the 2017 lows. Are the worst fears about them losing the Nike business over? Comps were still negative in the third quarter. But the stock is cheap, with a forward P/E of 11.5. And you get a dividend yielding 2.7%.
4. Kelly Services (KELYA - Free Report) specializes in temporary staffing and has a market cap of $1 billion. It recently acquired “Teachers on Call” to expand its digital talent platform. There is limited analyst coverage of this small cap which remains cheap with a forward P/E of 13.4.
5. Ultra Petroleum is a small cap E&P which specializes mostly in natural gas in the Pinedale Field in Wyoming, which is one of the top 10 natural gas fields in the United States. It recently closed on the sale of its assets in the Marcellus Shale for $115 million in cash as it tries to streamline its business. It’s ridiculously cheap, with a forward P/E of just 4.5, and it trades under $10.
As always, be sure to do your own investment research. With earnings season fast approaching, these companies will be doing conference calls. Be sure to tune in.
Additionally, Zacks.com has great earnings estimate data which is free and a great resource. Just put in the company ticker and, on then, on the left-hand side of the page, go to the “Detailed Estimates” link.
What else do you need to know about value stocks in 2018?
Tune into this week’s podcast to find out.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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.
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/performance for information about the performance numbers displayed in this press release.
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Zacks Value Investor Highlights: Borg Warner, FS Bancorp, Foot Locker, Kelly Services and Ultra Petroleum
For Immediate Release
Chicago, IL – Jan 05, 2018 – Zacks Value Investor 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/287702/5-cheap-stocks-for-2018)
5 Cheap Stocks for 2018
Welcome to Episode #75 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Happy New Year!
It’s finally 2018 and with the change in the calendar comes a chance for investors to start with a clean slate.
That means value investors can look for value stocks with no fears that they are under performing or out of favor, because not enough time has passed yet to determine that.
Running a Basic Value Stock Screen
Tracey used a basic value screen to find the value stocks this week. There’s no reason to always get fancy.
She searched for stocks that had Zacks Ranks of #1 (Strong Buy) or #2 (Buy) so that she would, presumably, get rising earnings estimates. She combined that with a P/E under 15, which is her usual level for value stocks.
It gave her a portfolio with 165 results.
As you might imagine, most of the semiconductor stocks, which continue to be cheap, such as Micron and Lam Research, were in this screen. She ignored those names because she’s already done several podcasts in 2017 on that industry.
For 2018, it had to be some new names. She also wanted a diverse group of companies.
5 Cheap Stocks to Start the Year
1. Borg Warner (BWA - Free Report) is a large cap company operating in engines and drive train technology. It’s a partner with the auto industry in fuel economy and emissions and is making the transition to electric cars and other alternatives. It is trading with a forward P/E of just 13.4.
2. FS Bancorp (FSBW - Free Report) is a tiny community bank in the Puget Sound area of Washington state. Analysts believe it has strong credit quality. Even though it’s small, it still pays a dividend currently yielding 0.8%. It has a forward P/E of 12.9.
3. Foot Locker (FL - Free Report) is a controversial choice even though the shares are up off the 2017 lows. Are the worst fears about them losing the Nike business over? Comps were still negative in the third quarter. But the stock is cheap, with a forward P/E of 11.5. And you get a dividend yielding 2.7%.
4. Kelly Services (KELYA - Free Report) specializes in temporary staffing and has a market cap of $1 billion. It recently acquired “Teachers on Call” to expand its digital talent platform. There is limited analyst coverage of this small cap which remains cheap with a forward P/E of 13.4.
5. Ultra Petroleum is a small cap E&P which specializes mostly in natural gas in the Pinedale Field in Wyoming, which is one of the top 10 natural gas fields in the United States. It recently closed on the sale of its assets in the Marcellus Shale for $115 million in cash as it tries to streamline its business. It’s ridiculously cheap, with a forward P/E of just 4.5, and it trades under $10.
As always, be sure to do your own investment research. With earnings season fast approaching, these companies will be doing conference calls. Be sure to tune in.
Additionally, Zacks.com has great earnings estimate data which is free and a great resource. Just put in the company ticker and, on then, on the left-hand side of the page, go to the “Detailed Estimates” link.
What else do you need to know about value stocks in 2018?
Tune into this week’s podcast to find out.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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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.