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Zacks Value Trader Highlights: BBQ Holdings, Energy Transfer, Hewlett Packard, and Bassett Furniture
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For Immediate Release
Chicago, IL – April 18, 2022 – 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/1899942/4-top-value-stocks-under-20)
4 Top Value Stocks Under $20
Welcome to Episode #277 of the Value Investor Podcast.
(1:00) - Is Now A Good Time For Small Cap Investments?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
What investor doesn't like to buy a "cheap" stock? One that is under $20?
Stocks under $20 just seem like more fun and if you can get one that actually has low valuations on a P/E or P/S ratio basis, even better.
Throwing in the Zacks Ranks of #1 (Strong Buy) and #2 (Buy) should also get you rising earnings estimates, which is a tough thing to find in 2022.
Tracey ran a screen for stocks under $20 with a P/S ratio under 1 and a top Zacks Rank along with positive earnings.
It produced 31 stocks.
4 Value Stocks Under $20 with Top Zacks Ranks
1. BBQ Holdings
BBQ Holdings operates 316 restaurants, including 23 ghost kitchens, across the United States. Its brands include Famous Dave's of America, Bakers Square and it just bought the Barrio Queen, a Phoenix-based chain with 7 restaurants.
In the fourth quarter, BBQ Holdings saw same-store-sales up 15.5% compared to 2019 for company-owned Famous Dave's locations and 18.8% for franchise owned. The strong business continued in March 2022, after a slowdown due to Omicron in Jan and Feb 2022.
Shares have fallen 3.9% year-to-date and are cheap, with a forward P/E of 12.7. Yet earnings are expected to rise 66% this year.
Energy Transfer is energy company that transports and stores natural gas, natural gas liquids, crude and refined products. It is a master limited partnership that is currently paying a dividend yielding 6.2%.
Energy Transfer is a Zacks Rank #1 (Strong Buy).
Shares are up 38.5% year-to-date but are still cheap with a P/S ratio of just 0.5.
Hewlett Packard Enterprises is a technology company that offers cloud services, high performance computing and AI, software and storage.
In March 2022, Hewlett Packard Enterprises reported its fiscal first quarter 2022 results and saw strong customer demand that drove order growth up 20% year-over-year.
It re-affirmed its full year revenue guidance but raised EPS guidance.
Hewlett Packard Enterprises expects free cash flow in fiscal 2022 in the range of $1.8 billion to $2 billion.
It is paying a dividend, yielding 3.1% and doing share buybacks. Hewlett Packard Enterprises is cheap, with a forward P/E of just 7.3.
But don't get it confused with HP Inc. (HPQ). HP Inc. is the hardware business, which makes computers and printers.
Warren Buffett's Berkshire Hathaway recently took a $4 billion position in HP Inc. It too pays a dividend, yielding 2.6%. But HP Inc isn't under $20 while Hewlett Packard Enterprises is.
Did Buffet buy the wrong company? Should Berkshire have bought Hewlett Packard Enterprises, and it's cheap free cash flow, instead?
Bassett Furniture is a furniture manufacturer that operates 96 stores and also sells wholesale. Furniture has been hot during the pandemic and Bassett continued to see strength in the first quarter of 2022.
Revenue was up 16% in the first quarter as Bassett Furniture continued to work through its backlog.
However, inflationary pressures are a challenge. Bassett said that every raw material involved in furniture production continued to escalate in the quarter. As a result, it implemented its sixth wholesale price increase in the last 15 months.
Over the last year, shares have fallen 33.7% on fears that 2021 was "peak" earnings.
Bassett is cheap, with a forward P/E of 8.9. It also pays a dividend, now yielding 3.3%.
Is Bassett Furniture oversold in 2022?
What Else Do You Need to Know About Value Stocks Under $20?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: BBQ Holdings, Energy Transfer, Hewlett Packard, and Bassett Furniture
For Immediate Release
Chicago, IL – April 18, 2022 – 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/1899942/4-top-value-stocks-under-20)
4 Top Value Stocks Under $20
Welcome to Episode #277 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.
What investor doesn't like to buy a "cheap" stock? One that is under $20?
Stocks under $20 just seem like more fun and if you can get one that actually has low valuations on a P/E or P/S ratio basis, even better.
Throwing in the Zacks Ranks of #1 (Strong Buy) and #2 (Buy) should also get you rising earnings estimates, which is a tough thing to find in 2022.
Tracey ran a screen for stocks under $20 with a P/S ratio under 1 and a top Zacks Rank along with positive earnings.
It produced 31 stocks.
4 Value Stocks Under $20 with Top Zacks Ranks
1. BBQ Holdings
BBQ Holdings operates 316 restaurants, including 23 ghost kitchens, across the United States. Its brands include Famous Dave's of America, Bakers Square and it just bought the Barrio Queen, a Phoenix-based chain with 7 restaurants.
In the fourth quarter, BBQ Holdings saw same-store-sales up 15.5% compared to 2019 for company-owned Famous Dave's locations and 18.8% for franchise owned. The strong business continued in March 2022, after a slowdown due to Omicron in Jan and Feb 2022.
Shares have fallen 3.9% year-to-date and are cheap, with a forward P/E of 12.7. Yet earnings are expected to rise 66% this year.
Should BBQ Holdings be on your watch list?
2. Energy Transfer (ET - Free Report)
Energy Transfer is energy company that transports and stores natural gas, natural gas liquids, crude and refined products. It is a master limited partnership that is currently paying a dividend yielding 6.2%.
Energy Transfer is a Zacks Rank #1 (Strong Buy).
Shares are up 38.5% year-to-date but are still cheap with a P/S ratio of just 0.5.
Is Energy Transfer a steal?
3. Hewlett Packard Enterprises (HPE - Free Report)
Hewlett Packard Enterprises is a technology company that offers cloud services, high performance computing and AI, software and storage.
In March 2022, Hewlett Packard Enterprises reported its fiscal first quarter 2022 results and saw strong customer demand that drove order growth up 20% year-over-year.
It re-affirmed its full year revenue guidance but raised EPS guidance.
Hewlett Packard Enterprises expects free cash flow in fiscal 2022 in the range of $1.8 billion to $2 billion.
It is paying a dividend, yielding 3.1% and doing share buybacks. Hewlett Packard Enterprises is cheap, with a forward P/E of just 7.3.
But don't get it confused with HP Inc. (HPQ). HP Inc. is the hardware business, which makes computers and printers.
Warren Buffett's Berkshire Hathaway recently took a $4 billion position in HP Inc. It too pays a dividend, yielding 2.6%. But HP Inc isn't under $20 while Hewlett Packard Enterprises is.
Did Buffet buy the wrong company? Should Berkshire have bought Hewlett Packard Enterprises, and it's cheap free cash flow, instead?
4. Bassett Furniture (BSET - Free Report)
Bassett Furniture is a furniture manufacturer that operates 96 stores and also sells wholesale. Furniture has been hot during the pandemic and Bassett continued to see strength in the first quarter of 2022.
Revenue was up 16% in the first quarter as Bassett Furniture continued to work through its backlog.
However, inflationary pressures are a challenge. Bassett said that every raw material involved in furniture production continued to escalate in the quarter. As a result, it implemented its sixth wholesale price increase in the last 15 months.
Over the last year, shares have fallen 33.7% on fears that 2021 was "peak" earnings.
Bassett is cheap, with a forward P/E of 8.9. It also pays a dividend, now yielding 3.3%.
Is Bassett Furniture oversold in 2022?
What Else Do You Need to Know About Value Stocks Under $20?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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/performancefor information about the performance numbers displayed in this press release.