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PulteGroup, Inc. (PHM) - free report >>
Toll Brothers Inc. (TOL) - free report >>
Hawaiian Holdings, Inc. (HA) - free report >>
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How Value Investors Can Buy Growth
Welcome to Episode #5 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
This week, Tracey discusses how value investors can also invest in growth by using the PEG ratio, which combines a low P/E ratio with a company’s growth rate.
Most value investors look for PEGs under 1.0 so Tracey ran a screen on Zacks.com, while also looking for earnings growth over 10%, to find stocks. She combined it with the Zacks Rank and came up with over 100 companies.
She picked three companies she thought were the most interesting.
Value stocks with Big Growth:
1. AbbVie Inc. (ABBV - Free Report) has a PEG of 0.9.
2. Berry Plastics (BERY - Free Report) has a PEG of 0.98
3. Hawaiian Holdings (HA - Free Report) has a PEG of 0.7
What makes these 3 companies Tracey’s top picks this week?
She discusses their fundamentals and growth trajectories in the podcast.
In addition to AbbVie, Tracey also discusses some of the other value and growth stocks in the drug sector and in the homebuilders, including Toll Brothers (TOL - Free Report) and Pulte (PHM - Free Report) .
Watch out for Value Traps
Not all cheap stocks have earnings growth though. Be careful.
Tracey explored the difference between a cheap stock and a value trap in the podcast below.
Learn the difference.
Find out why Tracey loves to buy value stocks with growth in this week’s podcast.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now. Click here to learn more>>