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Targeted Recommendations

The cheapest stock on the Focus List was added just last week.

Xyratex (XRTX) is truly cheap by every metric, including price-to-sales ratio, price-to-earnings ratio and price-to-book ratio. The P/B ratio is just 2.4 which is under the "value" parameter of 3.0.

Estimates have jumped on the storage systems provider in the last 30 days. The fiscal 2010 Zacks Consensus Estimate is up 56.3% in the last 30 days to $3.58 from $2.29 per share.

Xyratex is a Zacks #1 Rank (strong buy) stock.

Dolan Media (DM) is another company that has several value metrics.

The specialty publisher and mortgage default services processor also has low P/E, P/S and price-to-book ratios. It's price-to-book ratio is just 1.4, which is well within the value parameters and under the industry average of 1.6.

The first quarter Zacks Consensus Estimate has been holding at 26 cents over the last 60 days. The company is scheduled to report earnings results on May 4.

Dolan is a Zacks #2 Rank (buy) stock.

Listed below are the stocks within the Focus List with the cheapest valuations.

Company Ticker P/E P/S
Xyratex Ltd XRTX 5.56 0.59
World Acceptanc WRLD 7.95 1.47
Freept Mc Cop-B FCX 10.07 2.04
Dolan Media Co DM 10.18 1.35
Lincoln Educatl LINC 11.34 1.27
Nbty Inc NTY 11.77 1.12

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

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