We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Value Investor Highlights: Ameriprise Financial, American Woodmark, Bonanza Creek Energy, Ecopetrol and KEMET
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 27, 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/313423/how-to-screen-for-hidden-gem-stocks)
How to Screen for Hidden Gem Stocks
Welcome to Episode #102 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.
One of the basic concepts of value investing is buying stocks that are being ignored by Wall Street.
That sounds easy enough. Sometimes, the stocks, or industries, being shunned are obvious such as the retail and energy stocks that sold off in 2016 and 2017.
But what about other companies that don’t make the news? How do you find those hidden gems?
Putting Together a Screen to Find the Hidden Gems
To find those hidden gems, look for both the “hidden” and then focus on the “gems.”
1. For hidden stocks, you want stocks that are being ignored. That usually means that analysts also ignore them. The average S&P 500 company has 14 covering analysts so Tracey went just under half of that and screened for stocks with 6 covering analysts or less.
2. She also wanted a Zacks Rank of #1 (Strong Buy) or #2 (Buy) in order to get rising earnings estimates.
3. Earnings growth would also be nice, preferably 10% or more estimated for this year.
4. To get cheap hidden gems, she added a forward P/E of 15 and under.
The screen returned 100 stocks including many community banks, small and mid-cap companies and foreign companies who tend not to get much analyst coverage.
Tracey narrowed the list to a diverse list of five companies.
5 Cheap Hidden Gem Stocks
1. Ameriprise Financial, Inc. (AMP - Free Report) is in financial services and retirement planning. It’s a big cap with a market cap of $20 billion. It just reported record results in the first half of 2018. The company has a forward P/E of just 9.9 and, as an added bonus, shareholders get a dividend currently yielding 2.5%.
2. American Woodmark Corporation (AMWD - Free Report) has a market cap of just $1.5 billion. This kitchen and bath cabinet maker is expected to grow earnings by 43% in fiscal 2019. But shares have plunged 37% year-to-date making it cheap. It has a forward P/E of just 11.5.
3. Bonanza Creek Energy is a small cap E&P which drills in the Wattenberg Field and the Mid-Continent. It is not a Permian Basin play. The analysts are super bullish though, with one raising 2018 and 2019 earnings estimates in just the last week. It’s dirt cheap with a forward P/E of just 6.3.
4. Ecopetrol S.A. (EC - Free Report) is Colombia’s big state-run oil giant. With crude above $60, earnings are expected to soar 60.5% in 2018. Even with shares up 33% year-to-date, it has a forward P/E of just 11.7. Investors also get a nice dividend, yielding about 3%.
5. KEMET Corporation (KEM - Free Report) has a market cap of $1.6 billion and is covered by just 2 analysts. This supplier of electronic components is up 78.5% year-to-date, but it still sports a value P/E of just 14.7. Is it too volatile for most investors?
These are just 5 stocks out of the screen. There were dozens of others that also had the great hidden gem fundamentals.
Remember, always do your homework on any company you invest in. During earnings season, listen in on conference calls and read the company presentations.
What else should you know about screening for hidden gems?
Find out on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Value Investor Highlights: Ameriprise Financial, American Woodmark, Bonanza Creek Energy, Ecopetrol and KEMET
For Immediate Release
Chicago, IL – July 27, 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/313423/how-to-screen-for-hidden-gem-stocks)
How to Screen for Hidden Gem Stocks
Welcome to Episode #102 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.
One of the basic concepts of value investing is buying stocks that are being ignored by Wall Street.
That sounds easy enough. Sometimes, the stocks, or industries, being shunned are obvious such as the retail and energy stocks that sold off in 2016 and 2017.
But what about other companies that don’t make the news? How do you find those hidden gems?
Putting Together a Screen to Find the Hidden Gems
To find those hidden gems, look for both the “hidden” and then focus on the “gems.”
1. For hidden stocks, you want stocks that are being ignored. That usually means that analysts also ignore them. The average S&P 500 company has 14 covering analysts so Tracey went just under half of that and screened for stocks with 6 covering analysts or less.
2. She also wanted a Zacks Rank of #1 (Strong Buy) or #2 (Buy) in order to get rising earnings estimates.
3. Earnings growth would also be nice, preferably 10% or more estimated for this year.
4. To get cheap hidden gems, she added a forward P/E of 15 and under.
The screen returned 100 stocks including many community banks, small and mid-cap companies and foreign companies who tend not to get much analyst coverage.
Tracey narrowed the list to a diverse list of five companies.
5 Cheap Hidden Gem Stocks
1. Ameriprise Financial, Inc. (AMP - Free Report) is in financial services and retirement planning. It’s a big cap with a market cap of $20 billion. It just reported record results in the first half of 2018. The company has a forward P/E of just 9.9 and, as an added bonus, shareholders get a dividend currently yielding 2.5%.
2. American Woodmark Corporation (AMWD - Free Report) has a market cap of just $1.5 billion. This kitchen and bath cabinet maker is expected to grow earnings by 43% in fiscal 2019. But shares have plunged 37% year-to-date making it cheap. It has a forward P/E of just 11.5.
3. Bonanza Creek Energy is a small cap E&P which drills in the Wattenberg Field and the Mid-Continent. It is not a Permian Basin play. The analysts are super bullish though, with one raising 2018 and 2019 earnings estimates in just the last week. It’s dirt cheap with a forward P/E of just 6.3.
4. Ecopetrol S.A. (EC - Free Report) is Colombia’s big state-run oil giant. With crude above $60, earnings are expected to soar 60.5% in 2018. Even with shares up 33% year-to-date, it has a forward P/E of just 11.7. Investors also get a nice dividend, yielding about 3%.
5. KEMET Corporation (KEM - Free Report) has a market cap of $1.6 billion and is covered by just 2 analysts. This supplier of electronic components is up 78.5% year-to-date, but it still sports a value P/E of just 14.7. Is it too volatile for most investors?
These are just 5 stocks out of the screen. There were dozens of others that also had the great hidden gem fundamentals.
Remember, always do your homework on any company you invest in. During earnings season, listen in on conference calls and read the company presentations.
What else should you know about screening for hidden gems?
Find out on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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/performance for information about the performance numbers displayed in this press release.