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Zacks Value Trader Highlights: America's Car-Mart, General Motors, JetBlue, PVH and J. Jill

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For Immediate Release

Chicago, IL – March 8, 2019 – 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/358183/where-to-find-classic-value-stocks-in-2019)

Where to Find Classic Value Stocks in 2018

Welcome to Episode #132 of the Value Investor Podcast

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

It’s over 2 months into the new year but trends are already developing.

Stocks have staged a big rally off their December 2018 lows, and while growth stocks mostly led the rally, the value stocks have followed along and are now no longer cheap.

Even Warren Buffett admits there aren’t many deals to be had right now.

Investors might be able to find a company with a cheap PEG or PE, but it’s harder than ever to find one with both.

Screening for Classic Value

A classic value stock is one that has all four of the value fundamentals: a low Price-to-sales ratio, a low price-to-book ratio, a low PEG and a low forward P/E.

The initial screen looked for a P/S ratio under 1.0, a P/B ratio under 3, a PEG under 1 and a P/E under 15.

There was no Zacks Rank included initially.

That screen returned 144 stocks.

But, of course, you want to add the Zacks Rank so that you get rising earnings estimates.

With a Zacks Rank of #1 (Strong Buy) or #2 (Buy) added, the screen returned 24 stocks.

Here are 5 classic value stocks with great Zacks Ranks to include on your short list.

5 Classic Value Stocks for the 2019 Market

1.       America’s Car-Mart (CRMT - Free Report) is a small cap auto retailer which posted strong fiscal third quarter results. Earnings are expected to rise 73% for fiscal 2019. It is both cheap and has growth as it has a PEG ratio of just 0.7.

2.       General Motors (GM - Free Report) is still expected to see falling earnings into 2020 but it’s dirt cheap with a forward P/E of just 6. Investors also get a nice dividend, currently yielding 3.9%, for their patience.

3.       JetBlue Airways (JBLU - Free Report) is a mid-cap with strong earnings growth. This US airlines is expected to grow earnings by 32% in 2019 and 17.7% in 2020. It has a forward P/E of just 8.

4.       PVH (PVH - Free Report) hasn’t reported earnings yet. This global retailer, which owns the brands Tommy Hilfiger and Calvin Klein remains cheap even though it’s expected to grow earnings in fiscal 2019 by 19.7%. It has a P/S ratio of just 0.9.

5.       J. Jill (JILL - Free Report) is a woman’s specialty retailer of apparel and accessories. It just reported fourth quarter results and saw cleaner and leaner inventories. Gross margins also rose to 63.1% from 62.2%. Wall Street is doubtful, however, as it trades with a forward P/E of just 7.8.

Why are these stocks so cheap?  

Remember, stocks become values because Wall Street is running away or ignoring them for some reason. Investors should drill down into the story.

What else should value investors be looking for with classic value stocks in 2019?

Tune into this week’s podcast to find out.

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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.

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