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Screening for Ben Graham Value Stocks

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  • (0:45) - Advance Screening With Research Wizard
  • (4:20) - Tracey’s Top Stock Picks
  • (14:30) - Big Takeaways From Benjamin Graham: HIBB, CODX, QDEL, DHT, RKT
  • Podcast@Zacks.com

Welcome to Episode #240 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.

This week, Tracey is on the hunt for value stocks even though they’re out performing growth in 2021.

And she’s not looking for just any value stocks, she’s seeking the type of value stocks that Benjamin Graham, the father of value investing and one of the greatest value investors of all-time, would have been buying.

Where do you find them?

Screening for Ben Graham Stocks

Ben Graham looked for deep value stocks.

This requires using Zacks more advanced stock screening tool, Zacks Research Wizard.

It has a predefined Benjamin Graham screen, which includes Return on Assets (ROA) and EBIT/ABS, as two of the components.

This screen returned 25 stocks of various market cap and industries.

5 Ben Graham Value Stocks Right Now

1. Hibbett Sports, Inc. (HIBB - Free Report) has been a big pandemic winner as consumers have bought up outdoor sporting goods. Shares are up nearly 60% year-to-date but remain cheap with a forward P/E of 9.2. But is all the good news priced into this Zacks Rank #1 (Strong Buy)?

2. CoDiagnostics (CODX - Free Report) is a small cap molecular diagnostics company. It had record results in 2020 as revenues soared on sales of its Logix Smart Covid-19 test. It is cheap, with a forward P/E of 9.6. But shares are down 8.5% year-to-date on fears that this is as good as its going to get. Is the Street right?

3. Quidel Corp. (QDEL - Free Report) is a mid-cap diagnostics company that has partnered with drug stores to sell an At-Home Covid test. Shares have fallen 37.6% year-to-date on worries that all the good news is priced in. It’s dirt cheap, with a forward P/E of 6.8.

4. DHT Holdings (DHT - Free Report) is an independent crude oil tanker company. In the first quarter of 2021, the freight market remained weak as COVID outbreaks were still impacting the shipping industry. Earnings are expected to fall 95.9% this year but rebound in 2022. It has an ROA of 12.2% and shares have gained 25% year-to-date. Is the Street overlooking the current troubles in the industry for what could happen in the recovery?

5. Rocket Companies, Inc. (RKT - Free Report) is the largest mortgage lender in the United States. While the mortgage market has been hot, analysts still expect earnings to fall 48% this year and another 24.2%. Shares are cheap, with a forward P/E of 9.5. But was 2020 the best year Rocket will ever have?

What else should you know about Ben Graham value stocks?

Tune into this week’s podcast to find out. 

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