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.
Welcome to Episode #171 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 calendar has turned to 2020 but the 2019 stock market rally continues, with large cap growth stocks hitting new record highs nearly every day.
But what about value?
Are there even any value stocks out there in this over-bought market?
Screening for Classic Value
Classic value means companies with cheap fundamentals including low P/E, P/B, P/S, P/CF and PEG ratios.
It’s not easy being cheap in all FIVE of those fundamentals. This screen is going to be narrow as a result.
In addition, you can add on the Zacks Value Style Score as well as the Zacks Ranks of #1 (Strong Buy) and #2 (Buy).
The Rank should give you stocks with rising earnings estimates (hopefully).
Given all of the criteria in this screen, it’s not surprising that only 8 companies passed the test.
These 8 companies are the best of the classic value stocks, based solely on the fundamentals, Style Score and Rank, that are out there.
All investors should do further research to find out why these companies have such low P/Es and why Wall Street is ignoring them.
Here are five of the companies.
5 Classic Value Stocks
1. Brighthouse Financial (BHF - Free Report) has a forward P/E of just 3.8. It has a PEG ratio of just 0.35 and 1 analyst has raised full year estimates in the last week.
2. Credit Suisse has a forward P/E of just 8.9 and a PEG of 0.5. One analyst has raised his estimate for 2020 in the last week.
3. MetLife (MET - Free Report) is also cheap, with a forward P/E of just 8.4. Investors get a dividend, currently yielding 3.4%.
4. Penn National Gaming (PENN - Free Report) operates 39 gaming and racing facilities. It’s trading with a forward P/E of just 12.3 and a PEG ratio of just 0.4.
5. Signet (SIG - Free Report) is really cheap, with a forward P/E of 5.7, but many retailers have been struggling. One estimate has been raised for next fiscal year in the last week.
What else should you know about the hot market and buying classic value stocks?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Where to Find the Best Classic Value Stocks Right Now
Welcome to Episode #171 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 calendar has turned to 2020 but the 2019 stock market rally continues, with large cap growth stocks hitting new record highs nearly every day.
But what about value?
Are there even any value stocks out there in this over-bought market?
Screening for Classic Value
Classic value means companies with cheap fundamentals including low P/E, P/B, P/S, P/CF and PEG ratios.
It’s not easy being cheap in all FIVE of those fundamentals. This screen is going to be narrow as a result.
In addition, you can add on the Zacks Value Style Score as well as the Zacks Ranks of #1 (Strong Buy) and #2 (Buy).
The Rank should give you stocks with rising earnings estimates (hopefully).
Given all of the criteria in this screen, it’s not surprising that only 8 companies passed the test.
These 8 companies are the best of the classic value stocks, based solely on the fundamentals, Style Score and Rank, that are out there.
All investors should do further research to find out why these companies have such low P/Es and why Wall Street is ignoring them.
Here are five of the companies.
5 Classic Value Stocks
1. Brighthouse Financial (BHF - Free Report) has a forward P/E of just 3.8. It has a PEG ratio of just 0.35 and 1 analyst has raised full year estimates in the last week.
2. Credit Suisse has a forward P/E of just 8.9 and a PEG of 0.5. One analyst has raised his estimate for 2020 in the last week.
3. MetLife (MET - Free Report) is also cheap, with a forward P/E of just 8.4. Investors get a dividend, currently yielding 3.4%.
4. Penn National Gaming (PENN - Free Report) operates 39 gaming and racing facilities. It’s trading with a forward P/E of just 12.3 and a PEG ratio of just 0.4.
5. Signet (SIG - Free Report) is really cheap, with a forward P/E of 5.7, but many retailers have been struggling. One estimate has been raised for next fiscal year in the last week.
What else should you know about the hot market and buying classic value stocks?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>