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.
Welcome to Episode #24 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.
It’s a new year and with that brings new investing opportunities.
If you’re not investing, now is the time. Start small and build your portfolio from there.
Tracey took a look at one of her favorite value screening criteria, the PEG ratio, to see just how much value is still in this market, which is trading near all-time highs.
She looked for the “magic” PEG ratio, which is a PEG under 1.0. That usually indicates a company is undervalued. That gave her too many stocks so she added a Zacks Rank of #1 (Strong Buy) or #2 (Buy) to narrow it down. The Zacks Rank should also provide companies with rising earnings estimates.
To her surprise, there were 47 companies that passed the screen. There’s more value and growth combinations than you might think on the stock market right now.
Here are her 3 favorites.
3 Value Stocks with Magic PEG Ratios
1. The Chemours Company (CC - Free Report) , a specialty chemical company that was spun off from DuPont. It has a PEG of just 0.68 and is expected to grow earnings by 66% in 2017.
2. Freeport McMoran (FCX - Free Report) is a copper mining giant which also has a large oil and gas business. The energy and mining companies haven’t shown up in Tracey’s value screens in a while. Even though shares soared 94% in 2016, it’s still cheap with a PEG ratio of just 0.36. It also has soaring earnings estimates for 2017.
3. Whirlpool (WHR - Free Report) , the global appliance maker, has been outperforming in the North American market but has struggled in its number 2 market of Brazil. Still, the shares are cheap with a PEG of just 0.7. Earnings are expected to grow 12.7% in 2017.
Tracey believes this could be the year of the value stock. Are you game?
Find out more about what Tracey thinks about the PEG ratio 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.
Image: Bigstock
3 Value Stocks with Magic PEG Ratios
Welcome to Episode #24 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.
It’s a new year and with that brings new investing opportunities.
If you’re not investing, now is the time. Start small and build your portfolio from there.
Tracey took a look at one of her favorite value screening criteria, the PEG ratio, to see just how much value is still in this market, which is trading near all-time highs.
She looked for the “magic” PEG ratio, which is a PEG under 1.0. That usually indicates a company is undervalued. That gave her too many stocks so she added a Zacks Rank of #1 (Strong Buy) or #2 (Buy) to narrow it down. The Zacks Rank should also provide companies with rising earnings estimates.
To her surprise, there were 47 companies that passed the screen. There’s more value and growth combinations than you might think on the stock market right now.
Here are her 3 favorites.
3 Value Stocks with Magic PEG Ratios
1. The Chemours Company (CC - Free Report) , a specialty chemical company that was spun off from DuPont. It has a PEG of just 0.68 and is expected to grow earnings by 66% in 2017.
2. Freeport McMoran (FCX - Free Report) is a copper mining giant which also has a large oil and gas business. The energy and mining companies haven’t shown up in Tracey’s value screens in a while. Even though shares soared 94% in 2016, it’s still cheap with a PEG ratio of just 0.36. It also has soaring earnings estimates for 2017.
3. Whirlpool (WHR - Free Report) , the global appliance maker, has been outperforming in the North American market but has struggled in its number 2 market of Brazil. Still, the shares are cheap with a PEG of just 0.7. Earnings are expected to grow 12.7% in 2017.
Tracey believes this could be the year of the value stock. Are you game?
Find out more about what Tracey thinks about the PEG ratio 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>>