Back to top

Image: Bigstock

Zacks Value Investor Highlights: KB Home, PulteHomes and JC Penney

Read MoreHide Full Article

For Immediate Release

Chicago, IL – July 27, 2017 – Zacks Value Investor 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: (Please use the Soundcloud link from this URL for the POR. Thanks: https://www.zacks.com/stock/news/269252/3-classic-value-stocks-to-buy-now)

3 Classic Value Stocks to Buy Now Welcome to Episode #52 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.

This month is the 1-year anniversary of the launch of the Value Investor Podcast.

Throughout the year, Tracey has been discussing value stocks, telling you how to find them, discussing Warren Buffett, buy and hold investing and how to avoid value traps.

On this anniversary episode, Tracey wanted to look at classic value.

What are the basic fundamentals value investors use to find stocks?

4 Metrics for Finding Value

1.      The Price-to-Earnings Ratio, or “P/E”, is the most commonly used screening fundamental. Tracey looks for stocks under 15.

2.     The PEG ratio is also popular. You can use this as a stand-alone screening criteria. It is effective for those who want both value and growth.

3.     The Price-to-Book Ratio, or “P/B”, is also commonly deployed. Look for ratios under 3.0.

4.     The Price-to-Sales Ratio, or “P/S”, is a screening tool far fewer investors use but it can be very effective at finding cheap stocks.

But what if you were to screen for stocks using ALL of these classic value fundamentals at the same time?

Would any even qualify?

Tracey ran it, combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) ranking, and got a grand total of 6 stocks.

Yep, that’s it. Just six.

But some of them were quite intriguing.

3 Classic Value Stocks to Buy Now

1.      KB Home (NYSE:(KBH - Free Report) – Free Report) has all the classic value fundamentals including a price-to-sales ratio of just 0.5. Why are the homebuilders so cheap right now?

2.     PulteHomes (NYSE:(PHM - Free Report) – Free Report) just reported earnings this week. The homebuilders are seeing rising earnings this year. It has a PEG ratio of just 0.7.

3.     JC Penney (NYSE: – Free Report) is back on its way to being profitable. You may think all department stores are doomed, but what if they’re not? JC Penney has a forward P/E of just 10.5.

What else should you know about these classic value stocks?

Find out on this week’s podcast.

Want more value investing insights from Tracey?

Value investors are a special breed of investor. They don’t follow the herd.

If that is your style of investing, be sure to check out Tracey’s weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.

The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.

Click here to learn more>>>

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.

Get the full Report on KBH - FREE

Get the full Report on PHM - FREE

Get the full Report on JCP - FREE

Follow us on Twitter:  https://twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

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/performancefor 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:


PulteGroup, Inc. (PHM) - free report >>

KB Home (KBH) - free report >>