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Zacks Value Trader Highlights: BP (BP), D.R. Horton (DHI), Group 1 Automotive (GPI), Patrick Industries (PATK), and Vishay Intertechnologies (VSH)
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For Immediate Release
Chicago, IL – June 3, 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/1933274/how-to-start-value-investing
How to Start Value Investing
Welcome to Episode #283 of the Value Investor Podcast.
(1:00) - Learning The Basics To Value Investing
(6:15) - Creating A Screen To Find The Right Stock For You
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Value investors are made, not born. Even Warren Buffett started off trading, and buying stocks based on the chart patterns, until he read Benjamin Graham's Intelligent Investor at age 19 and had a light bulb moment.
But not everyone has to have a light bulb moment. Maybe you just like to buy stocks on sale or maybe you became obsessed with companies that actually had earnings over the last 2 years, versus growth stocks that did not.
And now you are thinking about buying value stocks. But where do you even begin?
Screening for Value Stocks
Value stock investing is about buying companies that are undervalued by Wall Street. They are usually cheap in fundamentals and have low P/E, P/S and PEG ratios.
New value investors can find value stocks by running a basic screen. Zacks.com has one, under the screening tab, then click on "predefined" and then click on the "Basic" button.
To recap: click on the following tabs and buttons on Zacks.com
On the "Basic" page, there is just one value screen. It is called Classic Value with Growth. It looks for stocks with low P/E, P/S, P/B and PEG ratios as well as 5 years of earnings growth and future earnings growth.
This screen returned 41 stocks.
That's a LOT of value stocks. Tracey pulled out 5 to take a closer look at on the podcast.
Without even trying, she happened to pull out 5 stocks that all had P/Es under 10. And 4 out of 5 were under 5.
BP is a large integrated energy company. It took a huge charge in the first quarter as it exited its Russian business due to the Ukraine War. BP owned a 19.75% position in Russia's Rosneft.
But it's cash flows are strong as oil and natural gas prices remain elevated. BP announced a $2.5 billion share buyback program that it would complete prior to its second quarter results. It pays a dividend, currently yielding 4%.
Shares have gained 23% in 2022 but remain dirt cheap. BP trades with a forward P/E of just 4.8.
Group 1 Automotive operates 147 dealerships in the United States and 55 in the United Kingdom along with 46 collision centers. It sells new and used vehicles, as well as parts and services.
In the first quarter, Group 1 Automotive had a record quarter.
Group 1 Automotive is doing a $250 million share repurchase program and just raised the dividend by 2.8%. It currently yields 0.8%.
Group 1 Automotive shares have fallen 8.4% year-to-date and are also dirt cheap. They trade with a forward P/E of just 4.2.
Is there more left in the tank for Group 1 Automotive shares?
Patrick Industries provides products and building materials for RVs, Marine, Manufactured Housing and various industrial markets. The RV and boat industries have been red hot during the pandemic as people sought adventures in the outdoors.
But Patrick Industries shares are down 26% year-to-date on fears about "peak" earnings in the RV and boat industries.
Patrick Industries is now dirt cheap as well, with a forward P/E of just 4.7. It pays a dividend, yielding 2.2%.
Are analysts getting it wrong on the RV industry and Patrick Industries?
Vishay is a manufacturer of semiconductors and passive electronic components servicing customers across all industries.
Vishay shares have been down as much as 20% this year but have rebounded recently and are now down "only" 7% year-to-date. But they're cheap, with a forward P/E of 7.6.
Vishay also pays a dividend, currently yielding nearly 2%.
Is the worst over in the semiconductors?
What Else do you Need to Know About How to Start Value Investing?
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: BP (BP), D.R. Horton (DHI), Group 1 Automotive (GPI), Patrick Industries (PATK), and Vishay Intertechnologies (VSH)
For Immediate Release
Chicago, IL – June 3, 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/1933274/how-to-start-value-investing
How to Start Value Investing
Welcome to Episode #283 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.
Value investors are made, not born. Even Warren Buffett started off trading, and buying stocks based on the chart patterns, until he read Benjamin Graham's Intelligent Investor at age 19 and had a light bulb moment.
But not everyone has to have a light bulb moment. Maybe you just like to buy stocks on sale or maybe you became obsessed with companies that actually had earnings over the last 2 years, versus growth stocks that did not.
And now you are thinking about buying value stocks. But where do you even begin?
Screening for Value Stocks
Value stock investing is about buying companies that are undervalued by Wall Street. They are usually cheap in fundamentals and have low P/E, P/S and PEG ratios.
New value investors can find value stocks by running a basic screen. Zacks.com has one, under the screening tab, then click on "predefined" and then click on the "Basic" button.
To recap: click on the following tabs and buttons on Zacks.com
1. Screening
2. Stock Screener
3. Predefined
4. Basic
Or you can get the "Basic" screens here.
These are free.
Value and Growth Is a Powerful Combination
On the "Basic" page, there is just one value screen. It is called Classic Value with Growth. It looks for stocks with low P/E, P/S, P/B and PEG ratios as well as 5 years of earnings growth and future earnings growth.
This screen returned 41 stocks.
That's a LOT of value stocks. Tracey pulled out 5 to take a closer look at on the podcast.
Without even trying, she happened to pull out 5 stocks that all had P/Es under 10. And 4 out of 5 were under 5.
5 Value Stocks with Growth
1. BP (BP - Free Report)
BP is a large integrated energy company. It took a huge charge in the first quarter as it exited its Russian business due to the Ukraine War. BP owned a 19.75% position in Russia's Rosneft.
But it's cash flows are strong as oil and natural gas prices remain elevated. BP announced a $2.5 billion share buyback program that it would complete prior to its second quarter results. It pays a dividend, currently yielding 4%.
Shares have gained 23% in 2022 but remain dirt cheap. BP trades with a forward P/E of just 4.8.
Should value investors still be diving into BP?
2. D.R. Horton (DHI - Free Report)
D.R. Horton is a large national home builder. The homebuilders have been value stocks all year long.
D.R. Horton shares have tumbled in 2022, falling 31% year-to-date. It's dirt cheap, with a forward P/E of just 4.3.
But analysts are worried about D.R. Horton having had "peak" earnings now that mortgage rates are rising.
Is D.R. Horton a value trap?
3. Group 1 Automotive (GPI - Free Report)
Group 1 Automotive operates 147 dealerships in the United States and 55 in the United Kingdom along with 46 collision centers. It sells new and used vehicles, as well as parts and services.
In the first quarter, Group 1 Automotive had a record quarter.
Group 1 Automotive is doing a $250 million share repurchase program and just raised the dividend by 2.8%. It currently yields 0.8%.
Group 1 Automotive shares have fallen 8.4% year-to-date and are also dirt cheap. They trade with a forward P/E of just 4.2.
Is there more left in the tank for Group 1 Automotive shares?
4. Patrick Industries (PATK - Free Report)
Patrick Industries provides products and building materials for RVs, Marine, Manufactured Housing and various industrial markets. The RV and boat industries have been red hot during the pandemic as people sought adventures in the outdoors.
But Patrick Industries shares are down 26% year-to-date on fears about "peak" earnings in the RV and boat industries.
Patrick Industries is now dirt cheap as well, with a forward P/E of just 4.7. It pays a dividend, yielding 2.2%.
Are analysts getting it wrong on the RV industry and Patrick Industries?
5. Vishay Intertechnologies (VSH - Free Report)
Vishay is a manufacturer of semiconductors and passive electronic components servicing customers across all industries.
Vishay shares have been down as much as 20% this year but have rebounded recently and are now down "only" 7% year-to-date. But they're cheap, with a forward P/E of 7.6.
Vishay also pays a dividend, currently yielding nearly 2%.
Is the worst over in the semiconductors?
What Else do you Need to Know About How to Start Value Investing?
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.
Media Contact
Zacks Investment Research
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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/performancefor information about the performance numbers displayed in this press release.