We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welcome to Episode #225 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.
But this week, she’s keeping it simple.
You don’t have to get fancy when looking for value stocks.
A basic value stock screen, with a secret ingredient, is enough to do the trick.
The Most Basic Value Stock Screen Ever
Value stocks are fundamentally those where investors can buy a company’s earnings on sale.
That means the earnings have to be cheap.
Investors should start by screening for a Price-to-Earnings (P/E) ratio under 15.
Then add on the secret ingredient of the top Zacks Rank stocks, of Strong Buy and Buys.
Just this basic screen, with just 3 components, however, still returned over 400 stocks.
Value investors may have to go even cheaper, to a forward P/E of 10 or less, and may have to limit market cap to those companies over $500 million. That would eliminate the micro-cap companies.
That basic screen returned 94 top Zacks Ranked value stocks.
5 Cheap Top Stocks
1. Bristol Myers Squibb (BMY - Free Report) , the big, global drug maker, has a forward P/E of just 8. 7 estimates have been revised higher for 2021 in the last 30 days. The company is expected to grow earnings by 15% in 2021. It’s a Zacks Rank #2 (Buy) stock.
2. Danaos Corp. (DAC - Free Report) is one of the largest independent owners of containerships. Shares have soared 37% in the last month but remain incredibly cheap, with a forward P/E of just 2.7. 2021 earnings are expected to soar 89% and it has the coveted Zacks Rank of #1 (Strong Buy).
3. DR Horton (DHI - Free Report) is one of the largest home builders in the United States. Earnings are expected to jump 40% in fiscal 2021 while revenues rise 28%. Yet, it’s cheap with a PEG ratio of just 0.7. It’s also a Zack Rank #1 (Strong Buy), the top Zacks Rank.
4. PacWest Bancorp is a regional California bank with a market cap of $4.3 billion. Earnings are expected to soar 70% in 2021 to $3.57 from $2.10 last year. Shares trade with a forward P/E of just 9.9. It also pays a dividend, currently yielding 2.8%.
5. Synchrony Financial (SYF - Free Report) is a private label credit card provider and financial company. 2021 earnings are expected to soar 92% but the shares remain cheap, with a forward P/E of just 8.5 and a PEG ratio of 0.95. This Zacks Rank #2 (Buy) also just announced a new $1.6 billion share repurchase program.
What else should you know about screening for top value stocks?
Listen to this week’s podcast to find out.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Shutterstock
The Most Basic Value Stock Screen Ever
Welcome to Episode #225 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.
But this week, she’s keeping it simple.
You don’t have to get fancy when looking for value stocks.
A basic value stock screen, with a secret ingredient, is enough to do the trick.
The Most Basic Value Stock Screen Ever
Value stocks are fundamentally those where investors can buy a company’s earnings on sale.
That means the earnings have to be cheap.
Investors should start by screening for a Price-to-Earnings (P/E) ratio under 15.
Then add on the secret ingredient of the top Zacks Rank stocks, of Strong Buy and Buys.
Just this basic screen, with just 3 components, however, still returned over 400 stocks.
Value investors may have to go even cheaper, to a forward P/E of 10 or less, and may have to limit market cap to those companies over $500 million. That would eliminate the micro-cap companies.
That basic screen returned 94 top Zacks Ranked value stocks.
5 Cheap Top Stocks
1. Bristol Myers Squibb (BMY - Free Report) , the big, global drug maker, has a forward P/E of just 8. 7 estimates have been revised higher for 2021 in the last 30 days. The company is expected to grow earnings by 15% in 2021. It’s a Zacks Rank #2 (Buy) stock.
2. Danaos Corp. (DAC - Free Report) is one of the largest independent owners of containerships. Shares have soared 37% in the last month but remain incredibly cheap, with a forward P/E of just 2.7. 2021 earnings are expected to soar 89% and it has the coveted Zacks Rank of #1 (Strong Buy).
3. DR Horton (DHI - Free Report) is one of the largest home builders in the United States. Earnings are expected to jump 40% in fiscal 2021 while revenues rise 28%. Yet, it’s cheap with a PEG ratio of just 0.7. It’s also a Zack Rank #1 (Strong Buy), the top Zacks Rank.
4. PacWest Bancorp is a regional California bank with a market cap of $4.3 billion. Earnings are expected to soar 70% in 2021 to $3.57 from $2.10 last year. Shares trade with a forward P/E of just 9.9. It also pays a dividend, currently yielding 2.8%.
5. Synchrony Financial (SYF - Free Report) is a private label credit card provider and financial company. 2021 earnings are expected to soar 92% but the shares remain cheap, with a forward P/E of just 8.5 and a PEG ratio of 0.95. This Zacks Rank #2 (Buy) also just announced a new $1.6 billion share repurchase program.
What else should you know about screening for top value stocks?
Listen to this week’s podcast to find out.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>