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Welcome to Episode #210 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.
Growth is still outperforming value in 2020, but in the last month some value stocks have taken off.
It’s not just growth stocks that have broken out to new 52-year or multi-year highs. Many value stocks have as well.
But how do you find the best hot value stocks that look ready to break out?
Screening for Hot Value Stocks
You can screen for stocks near their 52-week highs to get stocks that are “hot.”
If you screen up to 10% away from that high it should give you a wider screen.
Additionally, adding the Zacks Style Score for Value of A, which is the highest score, will give you a diverse basket of value fundamentals.
Limiting it to Zacks Rank #1 (Strong Buy) and #2 (Buy) will also, hopefully, screen for stocks with rising earnings estimates.
This screen returned 14 stocks.
5 Value Stocks Ready to Break Out
1. Group 1 Automotive, Inc. (GPI - Free Report) is an auto retailer which is expected to see earnings rise 28% in 2020. Car sales have been hot, especially used cars. Shares are up 23% year-to-date but are still cheap, with a forward P/E of just 8.8.
2. Penske Automotive Group (PAG - Free Report) , which has auto dealerships in the US and the UK, as well as a freight logistics business, and truck dealerships, is now trading at a 2-year high. Year-to-date the shares are up 5.9%. They trade with a forward P/E of 12.6.
3. SYNNEX (SNX - Free Report) distributes a broad range of information technology systems and products globally. It also owns Concentrix, which helps clients better connect with customers. Shares are up 14.2% year-to-date but it’s still cheap, with a forward P/E of 12.
4. Whirlpool Corp. (WHR - Free Report) is expected to see earnings fall 21.5% in 2020 thanks to the early impacts of the COVID pandemic, but analysts expect a swift rebound next year, with earnings jumping 26%. It’s up 38.4% year-to-date on the hot housing trade, but still trades with a forward P/E of just 16.
5. Bed Bath & Beyond is in the middle of a turnaround that began even before the pandemic. Last quarter, thanks to a surge in online orders, same-store-comparables were up 6% which was the first comp growth since 2016. It’s expected to lose $0.66 this year but analysts are bullish on next year and are looking for $1.19. The shares have soared 37.9% year-to-date.
What else do you need to know about the hottest value stocks?
Tune into this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
5 Value Stocks Ready to Break Out
Welcome to Episode #210 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.
Growth is still outperforming value in 2020, but in the last month some value stocks have taken off.
It’s not just growth stocks that have broken out to new 52-year or multi-year highs. Many value stocks have as well.
But how do you find the best hot value stocks that look ready to break out?
Screening for Hot Value Stocks
You can screen for stocks near their 52-week highs to get stocks that are “hot.”
If you screen up to 10% away from that high it should give you a wider screen.
Additionally, adding the Zacks Style Score for Value of A, which is the highest score, will give you a diverse basket of value fundamentals.
Limiting it to Zacks Rank #1 (Strong Buy) and #2 (Buy) will also, hopefully, screen for stocks with rising earnings estimates.
This screen returned 14 stocks.
5 Value Stocks Ready to Break Out
1. Group 1 Automotive, Inc. (GPI - Free Report) is an auto retailer which is expected to see earnings rise 28% in 2020. Car sales have been hot, especially used cars. Shares are up 23% year-to-date but are still cheap, with a forward P/E of just 8.8.
2. Penske Automotive Group (PAG - Free Report) , which has auto dealerships in the US and the UK, as well as a freight logistics business, and truck dealerships, is now trading at a 2-year high. Year-to-date the shares are up 5.9%. They trade with a forward P/E of 12.6.
3. SYNNEX (SNX - Free Report) distributes a broad range of information technology systems and products globally. It also owns Concentrix, which helps clients better connect with customers. Shares are up 14.2% year-to-date but it’s still cheap, with a forward P/E of 12.
4. Whirlpool Corp. (WHR - Free Report) is expected to see earnings fall 21.5% in 2020 thanks to the early impacts of the COVID pandemic, but analysts expect a swift rebound next year, with earnings jumping 26%. It’s up 38.4% year-to-date on the hot housing trade, but still trades with a forward P/E of just 16.
5. Bed Bath & Beyond is in the middle of a turnaround that began even before the pandemic. Last quarter, thanks to a surge in online orders, same-store-comparables were up 6% which was the first comp growth since 2016. It’s expected to lose $0.66 this year but analysts are bullish on next year and are looking for $1.19. The shares have soared 37.9% year-to-date.
What else do you need to know about the hottest value stocks?
Tune into this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>