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Zacks Value Investor Highlights: Caleres, J. Jill, Kemet, Haverty and M/I Homes
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For Immediate Release
Chicago, IL – February 9, 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: (https://www.zacks.com/stock/news/291736/small-cap-value-stocks-are-on-sale)
Small-Cap Value Stocks Are Now On Sale
Welcome to Episode #80 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.
The stock market has finally had a correction and volatility has picked up.
Could 2018 be the year that value stocks finally come back into favor?
So far, small cap value stocks continue to under-perform. Two of the popular small cap value ETFs, the Vanguard Small Cap Value ETF (VBR) and the iShares S&P Small-Cap 600 Value ETF (IJS) are down nearly 4% year-to-date.
But corrections are also a time to look for buying opportunity. Many of the small cap stocks have weakened.
Screening for Small Cap Value Stocks
There are a lot of small cap companies, where do you start if you want to invest?
To separate the wheat from the chaff, Tracey used the following criteria.
She screened for stocks with market caps under $1.5 billion, a price-to-sales ratio under 1.0, which usually means a company is undervalued, and looked for Zacks Ranks of #1 (Strong Buy) and #2 (Buy).
The high Zacks Rank should hopefully mean rising earnings estimates.
This screen returned 48 stocks, which was more than enough to find 5 top names.
5 Small Cap Value Stocks That are on Sale
1. Caleres, Inc. (CAL - Free Report) owns many well-known footwear brands including Via Spiga, Naturalizer, Dr. Scholl’s and Bzees. It operates 1200 retail stores, sells on its websites and also sells through major department stores. It’s cheap, with a P/S ratio of just 0.4. Shares are down over 14% year-to-date.
2. J. Jill (JILL - Free Report) sells women’s casual apparel and accessories. It has a market cap of just $350 million. Shares are off their 2017 lows, but are still cheap. J. Jill is a classic value play with a forward P/E of 9.4, a P/S of 0.5, and a PEG of 0.6.
3. Kemet Corporation (KEM - Free Report) supplies electronic components around the world. It has a market cap of $983 million. Shares are actually up double digits on the year but are still cheap, with a P/S ratio of only 0.9 and a forward P/E of 11.4.
4. Haverty Furniture (HVT - Free Report) had a rough 2017. This furnishing retailer has over 100 show rooms in 16 states. Founded in 1885, it has seen it all. Earnings fell in 2017 but are expected to rebound 26.3% in 2018. It has a price-to-sales ratio of only 0.5.
5. M/I Homes (MHO - Free Report) builds homes in the Midwest and South. It recently reported record fourth quarter and full year 2017 results. But 2018 is expected to be even better, with earnings expected to jump 45.5%. Shares are down over 10%, however, as investors are fearful of rising mortgage rates.
Investors should keep in mind that small caps are usually more volatile.
Additionally, there’s simply less financial information available on smaller companies. There are also fewer analysts covering them, so investors need to do their homework.
What else do you need to know about small cap stocks and this stock market correction?
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/performance for information about the performance numbers displayed in this press release.
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Zacks Value Investor Highlights: Caleres, J. Jill, Kemet, Haverty and M/I Homes
For Immediate Release
Chicago, IL – February 9, 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: (https://www.zacks.com/stock/news/291736/small-cap-value-stocks-are-on-sale)
Small-Cap Value Stocks Are Now On Sale
Welcome to Episode #80 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.
The stock market has finally had a correction and volatility has picked up.
Could 2018 be the year that value stocks finally come back into favor?
So far, small cap value stocks continue to under-perform. Two of the popular small cap value ETFs, the Vanguard Small Cap Value ETF (VBR) and the iShares S&P Small-Cap 600 Value ETF (IJS) are down nearly 4% year-to-date.
But corrections are also a time to look for buying opportunity. Many of the small cap stocks have weakened.
Screening for Small Cap Value Stocks
There are a lot of small cap companies, where do you start if you want to invest?
To separate the wheat from the chaff, Tracey used the following criteria.
She screened for stocks with market caps under $1.5 billion, a price-to-sales ratio under 1.0, which usually means a company is undervalued, and looked for Zacks Ranks of #1 (Strong Buy) and #2 (Buy).
The high Zacks Rank should hopefully mean rising earnings estimates.
This screen returned 48 stocks, which was more than enough to find 5 top names.
5 Small Cap Value Stocks That are on Sale
1. Caleres, Inc. (CAL - Free Report) owns many well-known footwear brands including Via Spiga, Naturalizer, Dr. Scholl’s and Bzees. It operates 1200 retail stores, sells on its websites and also sells through major department stores. It’s cheap, with a P/S ratio of just 0.4. Shares are down over 14% year-to-date.
2. J. Jill (JILL - Free Report) sells women’s casual apparel and accessories. It has a market cap of just $350 million. Shares are off their 2017 lows, but are still cheap. J. Jill is a classic value play with a forward P/E of 9.4, a P/S of 0.5, and a PEG of 0.6.
3. Kemet Corporation (KEM - Free Report) supplies electronic components around the world. It has a market cap of $983 million. Shares are actually up double digits on the year but are still cheap, with a P/S ratio of only 0.9 and a forward P/E of 11.4.
4. Haverty Furniture (HVT - Free Report) had a rough 2017. This furnishing retailer has over 100 show rooms in 16 states. Founded in 1885, it has seen it all. Earnings fell in 2017 but are expected to rebound 26.3% in 2018. It has a price-to-sales ratio of only 0.5.
5. M/I Homes (MHO - Free Report) builds homes in the Midwest and South. It recently reported record fourth quarter and full year 2017 results. But 2018 is expected to be even better, with earnings expected to jump 45.5%. Shares are down over 10%, however, as investors are fearful of rising mortgage rates.
Investors should keep in mind that small caps are usually more volatile.
Additionally, there’s simply less financial information available on smaller companies. There are also fewer analysts covering them, so investors need to do their homework.
What else do you need to know about small cap stocks and this stock market correction?
Tune into this week’s podcast to find out.
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.
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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/performance for information about the performance numbers displayed in this press release.