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Zacks Value Trader Highlights: Alliance Data Systems, Alamos Gold, Canadian Solar, Herc Holdings and NRG Energy

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For Immediate Release

Chicago, IL – September 13, 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/515266/5-value-stocks-for-the-great-stock-rotation)

5 Value Stocks for the Great Stock Rotation

Welcome to Episode #158 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.

After years of waiting for value to be “back”, suddenly, in the last 5 stock sessions, investors have been rotating out of the popular, hot growth stock names and into the beaten down value stocks.

Retailers, fertilizers, retail REITs, energy and banks have suddenly caught a bid.

Could this finally be the beginning of a value stock rally?

Growth is King

Growth stocks have dominated the last 5 years.

During that time, Vanguard’s Growth ETF (VUG) gained 65% while the Vanguard Value ETF (VTV) rose just 35.2%.

Over the last year, growth continued to lead but value has narrowed the out-performance as it has gained 1.9% versus growth’s 5.5%.

Screening for Value Stocks with Growth

While it’s fine to rotate into value stocks, instead of giving up on growth altogether, why not take a look at value stocks that are also growing?

Investors can find these stocks by screening with the PEG ratio.

A PEG ratio under 1.0 usually indicates value. Combining that with the Zacks Rank of #1 (Strong Buy) and #2 (Buy), should provide a list of stocks with both growth and value and, hopefully, rising earnings estimates.

This screen returned 9 stocks.

5 Value Stocks to Keep on Your Short List

1.       Alliance Data Systems manages more than 160 branded credit and loyalty programs for brands like Wayfair, J. Crew and Ulta. It has a PEG ratio of just 0.5 and a forward P/E of just 7 even though the shares are up almost 8% over the last 5 sessions.

2.       Alamos Gold (AGI - Free Report) is a gold miner with a market cap of $2.7 billion. It pays a dividend, currently yielding 0.6%. It’s got a low PEG ratio of just 0.6 because its 2019 earnings are expected to soar 320%.

3.       Canadian Solar (CSIQ - Free Report) is a maker of solar photovoltaic modules with a market cap of $1.3 billion. The stock is dirt cheap with a forward P/E of 6.5 and a PEG of only 0.2. Year-to-date the shares have jumped 47%.

4.       Herc Holdings Inc. (HRI - Free Report) is a large equipment rental company in North America. Shares have been on fire in 2019, gaining 75% and have been up nearly 10% in the great rotation period. But they’re still cheap with a PEG of just 0.4. Earnings are expected to jump 88.6% in 2019 and 49.3% in 2020.

5.       NRG Energy (NRG - Free Report) is a power generator for both businesses and residential with a market cap of $9.4 billion. It has a PEG ratio of only 0.3 and a forward P/E of 10. Earnings are expected to soar 58.5% this year and 42.5% next year.

What else should investors know about the great rotation into value stocks?

Find out on this week’s podcast.

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