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.
Zacks Value Trader Highlights: Toll Brothers, Arrow Electronics, Kohl's Corp, TotalEnergies SE, and Lithia Motors
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 7, 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:
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
This week, it’s time to take a look at the classic value stocks.
Every year, in the first week of the new year, Tracey runs a stock screen for classic value stocks. Last year, this screen returned 9 stocks, among them insurance and large financial services companies.
This year, the screen returned a more intriguing list.
Maybe it’s time to take a look at value stocks in 2022?
How to Screen for Classic Value Stocks
This screen for classic value stocks has all the value fundamentals, with the addition of the highest Zacks Ranks of Buy and Strong Buy, and the highest Zacks Style Scores for Value, of A and B.
This screen includes a P/E under 20, a P/S ratio under 1.0, a P/B ratio under 2.0, a P/Cash Flow under 20 and a PEG under 1.0.
With this many factors, it’s bound to be a short list. How many dirt-cheap value stocks with the top Zacks Ranks are there?
Turns out there are 12 to start this year. Tracey picked out 5.
Toll Brothers is the largest publicly-traded luxury home builder in America.
Shares are up 67.2% over the last year and trade near all-time highs.
But Toll Brothers is still dirt cheap with a forward P/E of just 7.4. It also has a PEG ratio of just 0.3. Toll has both growth and value, a rare combination.
Analysts expect Toll Brothers earnings to grow 46.3% in fiscal 2022 and another 16% in fiscal 2023.
Is it too late to buy Toll Brothers for this hot housing cycle?
Arrow Electronics, which guides innovation forward for over 180,000 tech manufacturers and service providers, is expected to see sales grow 19% this year to $34.3 billion.
Arrow’s earnings are forecast to grow 88% in 2021 and another 6.5% in 2022.
Arrow Electronics shares are up 40% in the last year, and are trading at 5-year highs, but they’re still cheap.
Arrow has a forward P/E of 8.8 and a P/S ratio of just 0.3.
Should you buy Arrow even as it’s hitting new highs?
Kohl’s Corp. is a retailer with 1,100 stores in 49 states. In its third quarter earnings, it raised its full year guidance as comparable sales were up 14.7% compared to a year ago.
Kohl’s raised its earnings guidance range, and the analysts did the same, as earnings are expected to rise 704% in fiscal 2021.
Over the last year, Kohl’s shares have gained 28% but have weakened over the past few weeks.
They’re cheaper than ever with a forward P/E of just 6.8 and a PEG ratio of 0.9.
Should Kohl’s be a retailer on your short list this year?
TotalEnergies is a French oil company, which operates in exploration and production, gas and renewables and petrochemicals. It has a $136.3 billion market cap.
In the third quarter, TotalEnergies’ cash flow was up 30% year-over-year as oil and gas prices soared.
TotalEnergies can easily pay its juicy dividend, currently yielding 6%.
Shares were up 20.9% in the last year, but TotalEnergies is still cheap with a forward P/E of just 7.1 and a Price/Cash Flow of 5.
Earnings are expected to rise 10.2% in 2022.
Should income investors be looking at TotalEnergies in 2022?
Lithia Motors owns auto dealerships and Driveway, its online auto buying and financing business.
On Jan 5, Lithia announced that Driveway had blown by its December estimates, posting 1,650 transactions, well above the 1,250 estimate.
That is a 15,000 annual-run rate.
Lithia Motors doesn’t believe these sales are being pulled from its brick-and-mortar business as 96% of Driveway’s customers were new to Lithia.
Lithia shares remain cheap as earnings are expected to rise 110% in 2021. It has a forward P/E of just 8 and a PEG ratio of 0.4.
Should investors be jumping on Lithia Motors on this share weakness?
Find out the Other 7 Stocks in the Classic Value Screen
These are just 5 of the 12 stocks in the top classic value stock screen.
What are the other 7?
Tune into this week’s podcast to find out.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, theZacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Value Trader Highlights: Toll Brothers, Arrow Electronics, Kohl's Corp, TotalEnergies SE, and Lithia Motors
For Immediate Release
Chicago, IL – January 7, 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:
https://www.zacks.com/stock/news/1848617/top-classic-value-stocks-to-start-2022
Top Classic Value Stocks to Start 2022
Welcome to Episode #263 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, it’s time to take a look at the classic value stocks.
Every year, in the first week of the new year, Tracey runs a stock screen for classic value stocks. Last year, this screen returned 9 stocks, among them insurance and large financial services companies.
This year, the screen returned a more intriguing list.
Maybe it’s time to take a look at value stocks in 2022?
How to Screen for Classic Value Stocks
This screen for classic value stocks has all the value fundamentals, with the addition of the highest Zacks Ranks of Buy and Strong Buy, and the highest Zacks Style Scores for Value, of A and B.
This screen includes a P/E under 20, a P/S ratio under 1.0, a P/B ratio under 2.0, a P/Cash Flow under 20 and a PEG under 1.0.
With this many factors, it’s bound to be a short list. How many dirt-cheap value stocks with the top Zacks Ranks are there?
Turns out there are 12 to start this year. Tracey picked out 5.
5 Top Classic Value Stocks for 2022
1. Toll Brothers (TOL - Free Report)
Toll Brothers is the largest publicly-traded luxury home builder in America.
Shares are up 67.2% over the last year and trade near all-time highs.
But Toll Brothers is still dirt cheap with a forward P/E of just 7.4. It also has a PEG ratio of just 0.3. Toll has both growth and value, a rare combination.
Analysts expect Toll Brothers earnings to grow 46.3% in fiscal 2022 and another 16% in fiscal 2023.
Is it too late to buy Toll Brothers for this hot housing cycle?
2. Arrow Electronics (ARW - Free Report)
Arrow Electronics, which guides innovation forward for over 180,000 tech manufacturers and service providers, is expected to see sales grow 19% this year to $34.3 billion.
Arrow’s earnings are forecast to grow 88% in 2021 and another 6.5% in 2022.
Arrow Electronics shares are up 40% in the last year, and are trading at 5-year highs, but they’re still cheap.
Arrow has a forward P/E of 8.8 and a P/S ratio of just 0.3.
Should you buy Arrow even as it’s hitting new highs?
3. Kohl’s Corp. (KSS - Free Report)
Kohl’s Corp. is a retailer with 1,100 stores in 49 states. In its third quarter earnings, it raised its full year guidance as comparable sales were up 14.7% compared to a year ago.
Kohl’s raised its earnings guidance range, and the analysts did the same, as earnings are expected to rise 704% in fiscal 2021.
Over the last year, Kohl’s shares have gained 28% but have weakened over the past few weeks.
They’re cheaper than ever with a forward P/E of just 6.8 and a PEG ratio of 0.9.
Should Kohl’s be a retailer on your short list this year?
4. TotalEnergies SE (TTE - Free Report)
TotalEnergies is a French oil company, which operates in exploration and production, gas and renewables and petrochemicals. It has a $136.3 billion market cap.
In the third quarter, TotalEnergies’ cash flow was up 30% year-over-year as oil and gas prices soared.
TotalEnergies can easily pay its juicy dividend, currently yielding 6%.
Shares were up 20.9% in the last year, but TotalEnergies is still cheap with a forward P/E of just 7.1 and a Price/Cash Flow of 5.
Earnings are expected to rise 10.2% in 2022.
Should income investors be looking at TotalEnergies in 2022?
5. Lithia Motors (LAD - Free Report)
Lithia Motors owns auto dealerships and Driveway, its online auto buying and financing business.
On Jan 5, Lithia announced that Driveway had blown by its December estimates, posting 1,650 transactions, well above the 1,250 estimate.
That is a 15,000 annual-run rate.
Lithia Motors doesn’t believe these sales are being pulled from its brick-and-mortar business as 96% of Driveway’s customers were new to Lithia.
Lithia shares remain cheap as earnings are expected to rise 110% in 2021. It has a forward P/E of just 8 and a PEG ratio of 0.4.
Should investors be jumping on Lithia Motors on this share weakness?
Find out the Other 7 Stocks in the Classic Value Screen
These are just 5 of the 12 stocks in the top classic value stock screen.
What are the other 7?
Tune into this week’s podcast to find out.
Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through November, theZacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First To New Top 10 Stocks >>
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.