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Buying the Best Value Stocks as the Market Hits All-Time Highs
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Key Takeaways
Buy skyrocketing gold stock SSRM for value and huge upside.
The gold miner is projected to grow its adjusted earnings by nearly 400% in 2025 and 53% next year.
The Nasdaq and the S&P 500 surged to new highs on Tuesday as Wall Street ramps up its bets on interest rate cuts after a slightly cooler-than-expected July inflation print.
The other market-moving factor outside of interest rates remains stellar. Total earnings for the S&P 500 companies that have reported are up +11.6% YoY on +5.9% revenue growth, based on the most recent Zacks data. We are on pace to hit an all-time quarterly record for aggregate S&P 500 earnings.
More importantly, the outlook for Q3 and beyond has improved after a great second quarter showing from big tech and beyond.
Some investors might not want to buy surging tech stocks right now.
But that doesn’t mean investors should stay on the sidelines. Instead, we’ll walk through how to screen for stocks that offer the winning combination of impressive value and improving earnings outlooks as the stock market soars to new highs.
Value Stock Screen Basics
The screen we are digging into today comes loaded with the Research Wizard and aims to sort through highly-ranked Zacks stocks to find some of the top value names.
This value-focused screen searches only for stocks that boast Zacks Rank #1 (Strong Buys) or #2 (Buys). It also focuses on stocks with price-to-earnings (P/E) ratios under the median for its industry. The screen also looks for stocks with price-to-sales (P/S) ratios under the median for its industry to help lock in relative value compared to its peers, since basing it off the wider market is not always the most useful tool.
The screen then digs into quarterly earnings rates above the median for its industry. This particular Zacks screen also uses a special blend of upgrades and estimates revisions to select the best seven stocks in this list.
The screen basics are listed below…
· Only Zacks Rank #1 (Strong Buy) or #2 (Buy) Stocks
· P/E (using 12-month EPS) - Under the Median for its Industry
· P/S - Under the Median for its Industry
· Percentage Change Act. EPS Q(0)/Q(-1)
· Rating Change and Revisions Factors (to help narrow the list to the 7 best stocks in this list)
This strategy comes loaded with the Research Wizard and it is called bt_sow_value_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Buy Skyrocketing Gold Stock SSRM for Value and Huge Upside
Gold prices are soaring and so are some of the best gold miners. SSR Mining Inc. ((SSRM - Free Report) ) is a Denver-based precious metals mining company focused on gold, silver, and other mineral properties. The company operates six key assets across the world, including the Marigold mine in Nevada, the Seabee in Saskatchewan, Canada, and more. SSRM boasts that it is the third-largest U.S. gold producer.
Image Source: Zacks Investment Research
SSR Mining posted blowout Q2 results on August 5, with gold-equivalent production soaring from 76K to 120K. The company’s revenue soared 119% to help boost its adjusted earnings by from $0.04 in the year-ago period to $0.51 a share, crushing our estimate by 122%.
SSRM’s consensus earnings estimate surged 21% for FY25 and 13% for next year, with its most accurate estimates well above those levels, earning SSRM a Zacks Rank #1 (Strong Buy). The gold miner is projected to grow its adjusted earnings by nearly 400% in 2025 and 53% next year on 52% and 19%, respective, sales expansion.
Image Source: Zacks Investment Research
The stock has climbed 1,100% in the past 25 years to blow away its sector’s 260% and the S&P 500’s 370%. Still, SSRM is trading 60% below its 2007 peaks, even though it has skyrocketed 220% in the past 12 months.
The company’s improving earnings outlook helps it trade near its lowest ever levels in terms of price-to-earnings-to-growth (PEG) ratio at 0.4, offering 92% value against its five-year highs of 5.9, 77% below the S&P 500, and 33% under its Basic Materials sector.
On a traditional forward earnings basis, SSRM trades at a 50% discount to its sector and 83% below its five-year highs at 8.4X forward earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Image: Bigstock
Buying the Best Value Stocks as the Market Hits All-Time Highs
Key Takeaways
The Nasdaq and the S&P 500 surged to new highs on Tuesday as Wall Street ramps up its bets on interest rate cuts after a slightly cooler-than-expected July inflation print.
The other market-moving factor outside of interest rates remains stellar. Total earnings for the S&P 500 companies that have reported are up +11.6% YoY on +5.9% revenue growth, based on the most recent Zacks data. We are on pace to hit an all-time quarterly record for aggregate S&P 500 earnings.
More importantly, the outlook for Q3 and beyond has improved after a great second quarter showing from big tech and beyond.
Some investors might not want to buy surging tech stocks right now.
But that doesn’t mean investors should stay on the sidelines. Instead, we’ll walk through how to screen for stocks that offer the winning combination of impressive value and improving earnings outlooks as the stock market soars to new highs.
Value Stock Screen Basics
The screen we are digging into today comes loaded with the Research Wizard and aims to sort through highly-ranked Zacks stocks to find some of the top value names.
This value-focused screen searches only for stocks that boast Zacks Rank #1 (Strong Buys) or #2 (Buys). It also focuses on stocks with price-to-earnings (P/E) ratios under the median for its industry. The screen also looks for stocks with price-to-sales (P/S) ratios under the median for its industry to help lock in relative value compared to its peers, since basing it off the wider market is not always the most useful tool.
The screen then digs into quarterly earnings rates above the median for its industry. This particular Zacks screen also uses a special blend of upgrades and estimates revisions to select the best seven stocks in this list.
The screen basics are listed below…
· Only Zacks Rank #1 (Strong Buy) or #2 (Buy) Stocks
· P/E (using 12-month EPS) - Under the Median for its Industry
· P/S - Under the Median for its Industry
· Percentage Change Act. EPS Q(0)/Q(-1)
· Rating Change and Revisions Factors (to help narrow the list to the 7 best stocks in this list)
This strategy comes loaded with the Research Wizard and it is called bt_sow_value_method1. It can be found in the SoW (Screen of the Week) folder.
The screen is pretty simple, yet powerful. Here is one of the seven stocks that made it through this week's screen…
Buy Skyrocketing Gold Stock SSRM for Value and Huge Upside
Gold prices are soaring and so are some of the best gold miners. SSR Mining Inc. ((SSRM - Free Report) ) is a Denver-based precious metals mining company focused on gold, silver, and other mineral properties. The company operates six key assets across the world, including the Marigold mine in Nevada, the Seabee in Saskatchewan, Canada, and more. SSRM boasts that it is the third-largest U.S. gold producer.
Image Source: Zacks Investment Research
SSR Mining posted blowout Q2 results on August 5, with gold-equivalent production soaring from 76K to 120K. The company’s revenue soared 119% to help boost its adjusted earnings by from $0.04 in the year-ago period to $0.51 a share, crushing our estimate by 122%.
SSRM’s consensus earnings estimate surged 21% for FY25 and 13% for next year, with its most accurate estimates well above those levels, earning SSRM a Zacks Rank #1 (Strong Buy). The gold miner is projected to grow its adjusted earnings by nearly 400% in 2025 and 53% next year on 52% and 19%, respective, sales expansion.
Image Source: Zacks Investment Research
The stock has climbed 1,100% in the past 25 years to blow away its sector’s 260% and the S&P 500’s 370%. Still, SSRM is trading 60% below its 2007 peaks, even though it has skyrocketed 220% in the past 12 months.
The company’s improving earnings outlook helps it trade near its lowest ever levels in terms of price-to-earnings-to-growth (PEG) ratio at 0.4, offering 92% value against its five-year highs of 5.9, 77% below the S&P 500, and 33% under its Basic Materials sector.
On a traditional forward earnings basis, SSRM trades at a 50% discount to its sector and 83% below its five-year highs at 8.4X forward earnings.
Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.
Click here to sign up for a free trial to the Research Wizard today.
Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure