Back to top

Image: Bigstock

Zacks Value Investor Highlights: Parker Hannifin , Air Products & Chemical, Casey???s General Stores, Hanesbrands and Ryder System

Read MoreHide Full Article

For Immediate Release

Chicago, IL – October 6, 2017 – 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/277798/applying-warren-buffetts-investing-lessons-today)

Applying Warren Buffett’s Investing Lessons Today

Welcome to Episode #62 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.

Warren Buffett was recently giving television interviews because Berkshire Hathaway bought a 38.6% stake in Pilot Flying J travel centers, which is the largest travel center company in North America, with 750 locations and 27,000 employees.

When you heard the news, you might have been thinking, “travel centers? That’s so boring.”

After all, this is a world filled with electric cars, 1-hour home delivery, ride-sharing, Airbnb, AI and social media.

What are the lessons value investors can learn from what Warren Buffett is buying?

3 Investing Lessons Learned from Warren Buffett

1.     Boring is beautiful. Sometimes the “ho-hum” companies are what turn out to be the cash-generating superstars. Take Pilot Flying J, for instance. It’s not just a travel center, but it also operates 279 restaurants making it the 10th largest restaurant franchise in America.

2.    Buy companies that are profitable. Sounds simple, right? But many don’t do it.

3.    Buy building block companies. Buffett likes to buy companies that operate in the shadows that few people give a second thought to. Travel centers is one of those. A railroad is another.

Tracey thought about these lessons and then wondered, what stocks fit into these parameters right now?

There’s not really a screen for stocks Warren Buffett would like that are building block companies, profitable and boring.

But she did find 5 stocks that have Zacks Ranks of #1 (Strong  Buy), #2 (Buy) and #3 (Hold) that fit into the parameters. Not all are classic value stocks, however, but they each fit into Buffett’s lessons.

5 Stocks That Are Buffett-Like

1.     Parker Hannifin (NYSE: (PH - Free Report)  – Free Report) has been in business 100 years. It makes motion, control and filtration systems. It’s forward P/E is 19.5 but it’s expected to see double digit earnings growth this fiscal year and next.

2.    Air Products & Chemical (NYSE: (APD - Free Report)  – Free Report) was founded in 1940. It provides atmospheric and process gases to customers in 50 countries. It has a 30 billion market cap and pays a dividend yielding 2.5%.

3.    Casey’s General Stores (Nasdaq: (CASY - Free Report)  – Free Report) operates small town convenience stores that sell gas and food in the Midwest. Because it operates in towns under 5,000, it often is the only pizza provider in town. As a result, it’s now the 5th largest pizza chain in the country.

4.    Hanesbrands, Inc. (NYSE: (HBI - Free Report)  – Free Report) has been in business 116 years. It makes basic apparel such as bras, socks and underwear. It has a forward P/E of just 12.

5.    Ryder System (NYSE: (R - Free Report)  – Free Report) operates one of North America’s largest truck fleets. Founded in 1933, it has a market cap of $4.5 billion. It has a price-to-book ratio of just 2.1 and a price-to-sales ratio of 0.6.

What else should you know about Buffett’s investing lessons?

Tune into this week’s podcast to find out.

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>>>

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.

Get the full Report on PH - FREE

Get the full Report on APD - FREE

Get the full Report on CASY - FREE

Get the full Report on HBI - FREE

Get the full Report on R - 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.