Back to top

Image: Bigstock

Zacks Value Trader Highlights: Bristol Myers Squibb, Danaos Corp, DR Horton, PacWest Bancorp and Synchrony Financial

Read MoreHide Full Article

For Immediate Release

Chicago, IL – February 19, 2021 – Zacks Value Trader 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:

Welcome to Episode #225 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.

But this week, she's keeping it simple.

You don't have to get fancy when looking for value stocks.

A basic value stock screen, with a secret ingredient, is enough to do the trick.

The Most Basic Value Stock Screen Ever

Value stocks are fundamentally those where investors can buy a company's earnings on sale.

That means the earnings have to be cheap.

Investors should start by screening for a Price-to-Earnings (P/E) ratio under 15.

Then add on the secret ingredient of the top Zacks Rank stocks, of Strong Buy and Buys.

Just this basic screen, with just 3 components, however, still returned over 400 stocks.

Value investors may have to go even cheaper, to a forward P/E of 10 or less, and may have to limit market cap to those companies over $500 million. That would eliminate the micro-cap companies.

That basic screen returned 94 top Zacks Ranked value stocks.

5 Cheap Top Stocks

1.       Bristol Myers Squibb (BMY - Free Report) , the big, global drug maker, has a forward P/E of just 8. 7 estimates have been revised higher for 2021 in the last 30 days. The company is expected to grow earnings by 15% in 2021. It's a Zacks Rank #2 (Buy) stock.

2.       Danaos Corp. (DAC - Free Report)  is one of the largest independent owners of containerships. Shares have soared 37% in the last month but remain incredibly cheap, with a forward P/E of just 2.7. 2021 earnings are expected to soar 89% and it has the coveted Zacks Rank of #1 (Strong Buy).

3.       DR Horton (DHI - Free Report)  is one of the largest homebuilders in the United States. Earnings are expected to jump 40% in fiscal 2021 while revenues rise 28%. Yet, it's cheap with a PEG ratio of just 0.7. It's also a Zack Rank #1 (Strong Buy), the top Zacks Rank.

4.       PacWest Bancorp  is a regional California bank with a market cap of $4.3 billion. Earnings are expected to soar 70% in 2021 to $3.57 from $2.10 last year. Shares trade with a forward P/E of just 9.9. It also pays a dividend, currently yielding 2.8%.

5.       Synchrony Financial (SYF - Free Report)  is a private label credit card provider and financial company. 2021 earnings are expected to soar 92% but the shares remain cheap, with a forward P/E of just 8.5 and a PEG ratio of 0.95. This Zacks Rank #2 (Buy) also just announced a new $1.6 billion share repurchase program.

What else should you know about screening for top value stocks?

Listen to this week's podcast to find out.

Legal Marijuana: An Investor's Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they've been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks' Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>

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.

Published in