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4 Great Industrial Value Picks Under $20 for Your Portfolio
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The steadily improving U.S. economy will likely bring to the forefront some winners across the equity universe in 2017. However, the broader market is faced with trying times, thanks to external factors like oil price volatility, simmering tension with North Korea and the damaging hurricanes.
Consequently, investors must not invest their money on typical bets without a clear roadmap.
A number of stocks might look promising on the surface, however among those, many might not have enough potential to outperform the market.
The Industrial sector has been an impressive performer since the Presidential election. Certain aspects such as President Trump’s intentions to boost U.S. infrastructure spending, as well as the recovering economy in China are anticipated to bolster performance of a number of industrial stocks in the near term.
The industrial stocks in the S&P 500 Group performed fairly well in the Q2 earnings season. On an average, the sector recorded 18.8% rise in earnings and 13.6% upside in revenues on a year-over-year basis in the quarter, compared to the respective tallies of 11.2% and 5.6% for the benchmark S&P 500 index.
However, is this enough to invest in any industrial stock?
Value Investing
We believe that investors would do fairly well by investing in less risky industrial stocks rather than opting for the uncertain ones. Henceforth, value stocks could essentially be a safer bet at this moment, given the penchant for steady growth momentum and price.
Value investing provides an opportunity to foray into the market and grab stocks which are not noticed by most investors. These stocks often yield sound dividends, possess low price/earnings ratios and have concrete outlooks.
Moreover, it would be more reasonable to invest in stocks which are trading at bargain prices because the current market uncertainty is yet to be addressed. Investors would be able to buy a large number of shares of a company, if they provide prime focus on less expensive stocks.
The Underlying Metrics
Through our latest style score system, we have narrowed down four stocks that might prove to be a boon for value investors.
Our Value Style Score brings about all valuation metrics into one actionable score that assists investors steer clear of ‘value traps’ and spot stocks that are actually trading at a discount.
Back-tested results show that stocks with Value Style Scores of A, when pooled with a Zacks Rank #1 (Strong Buy) or #2 (Buy), offer the best investment opportunities.
All these value bets listed below carry a solid Zacks Rank and an attractive Value Style Score.
Additionally, these stocks are currently trading below $20, which makes them more rewarding.
Our Picks
Kawasaki Heavy Industries, Ltd. (KWHIY - Free Report) , along with its subsidiaries, produces and sells specialized industrial goods and transportation equipment globally.
IHI Corporation (IHICY - Free Report) , with its subsidiaries, sells and manufactures machinery and equipment in Japan and other overseas markets, including the United States.
Casella Waste Systems, Inc. (CWST - Free Report) and its subsidiaries are regarded as renowned vertically-integrated solid waste services company of Northeastern United States.
Keeping in mind the current economic rudiments, investors would play safe by employing a risk-averse attitude. The above-mentioned value stocks in the industrial sector possess high growth prospects and hence would likely provide promising returns to investors moving ahead.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
4 Great Industrial Value Picks Under $20 for Your Portfolio
The steadily improving U.S. economy will likely bring to the forefront some winners across the equity universe in 2017. However, the broader market is faced with trying times, thanks to external factors like oil price volatility, simmering tension with North Korea and the damaging hurricanes.
Consequently, investors must not invest their money on typical bets without a clear roadmap.
A number of stocks might look promising on the surface, however among those, many might not have enough potential to outperform the market.
The Industrial sector has been an impressive performer since the Presidential election. Certain aspects such as President Trump’s intentions to boost U.S. infrastructure spending, as well as the recovering economy in China are anticipated to bolster performance of a number of industrial stocks in the near term.
The industrial stocks in the S&P 500 Group performed fairly well in the Q2 earnings season. On an average, the sector recorded 18.8% rise in earnings and 13.6% upside in revenues on a year-over-year basis in the quarter, compared to the respective tallies of 11.2% and 5.6% for the benchmark S&P 500 index.
However, is this enough to invest in any industrial stock?
Value Investing
We believe that investors would do fairly well by investing in less risky industrial stocks rather than opting for the uncertain ones. Henceforth, value stocks could essentially be a safer bet at this moment, given the penchant for steady growth momentum and price.
Value investing provides an opportunity to foray into the market and grab stocks which are not noticed by most investors. These stocks often yield sound dividends, possess low price/earnings ratios and have concrete outlooks.
Moreover, it would be more reasonable to invest in stocks which are trading at bargain prices because the current market uncertainty is yet to be addressed. Investors would be able to buy a large number of shares of a company, if they provide prime focus on less expensive stocks.
The Underlying Metrics
Through our latest style score system, we have narrowed down four stocks that might prove to be a boon for value investors.
Our Value Style Score brings about all valuation metrics into one actionable score that assists investors steer clear of ‘value traps’ and spot stocks that are actually trading at a discount.
Back-tested results show that stocks with Value Style Scores of A, when pooled with a Zacks Rank #1 (Strong Buy) or #2 (Buy), offer the best investment opportunities.
All these value bets listed below carry a solid Zacks Rank and an attractive Value Style Score.
Additionally, these stocks are currently trading below $20, which makes them more rewarding.
Our Picks
Kawasaki Heavy Industries, Ltd. (KWHIY - Free Report) , along with its subsidiaries, produces and sells specialized industrial goods and transportation equipment globally.
Zacks Rank: #1
Value Score: A
Last Closing Price: $12.55
Kawasaki Heavy Industries Ltd. Price
Kawasaki Heavy Industries Ltd. price | Kawasaki Heavy Industries Ltd. Quote
IHI Corporation (IHICY - Free Report) , with its subsidiaries, sells and manufactures machinery and equipment in Japan and other overseas markets, including the United States.
Zacks Rank: #1
Value Score: A
Last Closing Price: $13.65
IHI CORP Price
IHI CORP price | IHI CORP Quote
You can see the complete list of today’s Zacks #1 Rank stocks here.
Aggreko plc offers temperature control and temporary power solutions in various end markets across the globe.
Zacks Rank: #2
Value Score: A
Last Closing Price: $12.00
Aggreko PLC Price
Aggreko PLC price | Aggreko PLC Quote
Casella Waste Systems, Inc. (CWST - Free Report) and its subsidiaries are regarded as renowned vertically-integrated solid waste services company of Northeastern United States.
Zacks Rank: #2
Value Score: A
Last Closing Price: $17.52
Casella Waste Systems, Inc. Price
Casella Waste Systems, Inc. price | Casella Waste Systems, Inc. Quote
Bottom Line
Keeping in mind the current economic rudiments, investors would play safe by employing a risk-averse attitude. The above-mentioned value stocks in the industrial sector possess high growth prospects and hence would likely provide promising returns to investors moving ahead.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>