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Zacks Value Investor Highlights: ArcBest, ISG, J. Jill, JinkoSolar and Rayonier Advanced Materials

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For Immediate Release

Chicago, IL – August 24 – 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/319297/5-top-classic-value-stocks)

5 Top Classic Value Stocks

Welcome to Episode #106 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.

With the major stock indexes hitting new all-time highs, there are questions about valuation again.

Are there any value stocks still left out there?

And are there any classic value stocks among them?

What Makes a Stock a “Classic Value”?

Classic value means that the company has the old-school value metrics. Those include a low P/E ratio, PEG ratio, P/B ratio and P/S ratio.

You can also add price to cash flow (P/CF) to the mix.

Why would you want to add P/CF?

Cash is hard to fake. A company either has it or it doesn’t.

Many investors like to use P/CF instead of P/E or you can use both of them, as Tracey did here.

Screening for the Best Classic Value Stocks

There are a lot of components to a classic value stock screen so that means it’s going to give fewer results. It’s only going to be the cheapest of stocks.

But Tracey also added the Zacks Rank of #1 (Strong Buy) and #2 (Buy) to the value fundamentals in order to get rising earnings estimates.

The screen included a P/E under 15, a PEG ratio under 1, a P/B ratio under 3, a P/S ratio under 1 and a P/CF ratio under 10.

The screen returned just 13 stocks.

Here are the featured five.

5 Top Classic Value Stocks for Your Short List

1.       ArcBest (ARCB - Free Report) is a logistics company with a market cap of $1.2 billion. In the second quarter it saw a record level of quarterly consolidated revenue in its history. It has a PEG ratio of 0.4 and a Price-to-Book ratio of 1.8.

2.       ISG (III - Free Report) is a global tech research and advisory firm with a market cap of just $191 million. In the second quarter, revenue was up 4% to a record $71 million. It has a forward P/E of just 11.2 and a P/S ratio of 0.7.

3.       J. Jill (JILL - Free Report) is a woman’s specialty retailer with a market cap of $300 million. In the second quarter, same-store-sales, a key retail metric, was up 2.2%. Shares fell sharply on the earnings report, however. It has a forward P/E of 9.8 and a P/CF of 4.7.

4.       JinkoSolar (JKS - Free Report) is a Chinese solar company with a market cap of $500 million. Even with new policies issued by the Chinese government on May 31, it’s still growing. Shares have plunged 50% year-to-date, however. Shares are dirt cheap with a forward P/E of just 5.2 and a PEG ratio of 0.5.

5.       Rayonier Advanced Materials (RYAM - Free Report) makes high-purity cellulose, paperboard, lumber, newsprint to high-yield pulp. It has a market cap of $1.1 billion. In the second quarter, it saw strong performance in pulp and forest products. The company has a PEG ratio of 0.5 and a P/CF of 5.4.

All of these companies are small caps which isn’t surprising given the out performance of the large caps.

Value stocks are those out of favor with the Street and the small caps have been out of favor for quite some time.

What else should you know about classic value stocks?

Listen to this week’s podcast to find out.

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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.

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