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5 of 2020's Hottest Value Stocks

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  • (1:00) - Value Investors Taking Advantage of Sell Offs
  • (4:10) - Tracey’s Top Stock Picks
  • (15:30) - What Stocks Didn’t Rebound and Why
  • (21:00) - Episode Roundup: CSIQ, IIPR, RH, HIBB, PENN, BHF, CS, MET, SIG, MDC


Welcome to Episode #216 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.

While growth stocks continue to dominate in 2020, there were still some individual value stocks that stuck out from the pack and managed to outperform in 2020 as well.

Value Stocks Before the Pandemic Hit

It’s hard to believe now, but in January 2020 no one could foresee a pandemic sweeping the globe.

Back then, the question was finding good quality companies that were being ignored by Wall Street.

What if you had bought some genuine, classic value stocks with low P/Es and high Zacks Ranks to start the year and held them through the coronavirus sell-off until December?

Some investors managed to find some hidden gems.

5 of 2020’s Hottest Value Stocks

1.       Canadian Solar (CSIQ - Free Report) was trading with a forward P/E around 7 to start the year. The solar stocks had been in a narrow trading range for years so the Street had mostly abandoned the industry. But industry conditions improved this year, and so did the earnings estimates. Canadian Solar busted out to new 5-year highs, jumping 71% year-to-date.

2.       Innovative Industrial Properties (IIPR - Free Report) is a REIT which leases out facilities to those in the marijuana industry. While it was a little more expensive to start the year, it was a value in the cannabis industry with strong earnings and revenue growth forecasts. Shares have jumped 109% in 2020 and earnings are expected to surge another 58% next year. It’s now trading with a forward P/E of 30.

3.       RH (RH - Free Report) was added to the Berkshire Hathaway portfolio in the third quarter of 2019 because the shares were relatively cheap, with a forward P/E under 15. They remained so to start 2020 but then the pandemic hit and boosted business. Shares are up 120% year-to-date and now trade with a forward P/E of 27.

4.       Hibbett Sports (HIBB - Free Report) had a forward P/E of 10.4 to start the year. It, too, was a pandemic winner as everyone wanted to do sports and activities outside so they gobbled up running shoes, hiking boots, footballs and ice skates. Hibbett shares have surged 62% year-to-date but they’re still cheap, with a forward P/E of just 8.4.

5.       Penn National Gaming (PENN - Free Report) is a value stock? Yes. At the beginning of the year, Penn had a forward P/E of just 12.3. Shares have been bid up during the pandemic, gaining 195% year-to-date. They’re no longer cheap, with a forward P/E of 130.

What else should you know about the big winner value stocks of 2020?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of IIPR and RH in her personal portfolio.]

Looking for Stocks with Skyrocketing Upside?

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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>>

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