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Zacks Value Trader Highlights: Hawkins, AutoNation, Costco, UFP Industries and Bunge

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For Immediate Release

Chicago, IL – March 25, 2022 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1887094/screening-like-a-guru-the-oshaughnessy-strategy)

Screening Like a Guru: The O'Shaughnessy Strategy

Welcome to Episode #274 of the Value Investor Podcast.

 

  • (1:00) - Finding Cheap Growth Stocks With Value: The O’Shaughnessy Screener
  • (12:15) - Tracey’s Top Stock Picks To Keep On Your Radar
  • (28:30) - Big Takeaways From O’Shaughnessy Strategy: HWKN, AN, COST, UFPI, BG
  •                Podcast@Zacks.com

 

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

Stocks are still on sale in 2022, but maybe it's time to take the emotions out of investing?

A quantitative analysis stock screen could be just the ticket.

Zacks Research Wizard has guru stock screens from some of the best in the industry, including O'Shaughnessy Asset Management's Jim O'Shaughnessy, the author of the best-selling investing book "What Works on Wall Street."

If you like strategy investing, this podcast is for you.

This O'Shaughnessy strategy includes the P/S ratio but does not screen for the Zacks Rank.

Running this guru screen returned 50 stocks. Here are 5 to consider.

5 Value Stocks to Keep on Your Watch List

1.      Hawkins (HWKN - Free Report) )

Hawkins is a specialty chemical company founded in 1938. It has 49 facilities in 24 states and does business in 3 segments including Water Treatment, Health & Nutrition and Industrial. It has 33 water treatment facilities.

In 2021, Hawkins had record annual revenue and earnings. Shares are up 17.6% this year but Hawkins is still attractively valued with a P/S ratio of 1.4.

Hawkins recently raised its dividend 8%. It now yields 1.2%.

Will Hawkins continue to see momentum in 2022?

2.      AutoNation (AN - Free Report) )

AutoNation is cashing in on the demand for autos during the pandemic. Full year earnings were a record. In the fourth quarter of 2021, used vehicles continued to drive the quarter, as revenue was up 55% while new vehicle revenue fell 7%.

Analysts expect AutoNation to grow earnings another 10.6% in 2022.

AutoNation is dirt cheap, with a forward P/E of just 5.8 and a P/S ratio of 0.3.

It doesn't pay a dividend but is doing a share buyback.

AutoNation shares are down 1.3% year-to-date.

Is AutoNation stock a deal?

3.      Costco (COST - Free Report) )

Costco operates 828 warehouses in the US, Puerto Rico, Canada, Mexico, Japan, the UK, Korea, Taiwan, Australia, Spain, France China and Iceland.

This retail giant has been posting double digit monthly sales comps in the United States in 2022, defying critics who believe consumer spending is slowing.

Where's the value? Costco trades with a P/S ratio of just 1.18 even though shares are up 66% over the last year.

Should value investors consider Costco in 2022?

4.      UFP Industries (UFPI - Free Report) )

UFP Industries is a supplier of lumber to the manufactured housing industry. It operates in 3 segments: retail, industrial and construction.

UFP Industries saw record earnings in 2021 after it acquired 9 companies in the year. On Jan 28, after seeing strong cash flow, it raised its dividend 33%.

Year-to-date, shares are down 8% but shares remain cheap with a P/S ratio of just 0.6.

Should UFP Industries be on your watch list?

5.      Bunge (BG - Free Report) )

Bunge's website says it connects farmers to consumers and delivers essential food, feed and fuel to the world.  In the fourth quarter of 2021, Bunge's refined and specialty oils posted record results.

In Feb 2022, Bunge expected favorable market conditions to continue.

Shares have been red-hot in 2022, gaining 20% but Bunge remains cheap with a P/S ratio of just 0.3.

Bunge pays a dividend, yielding 1.9%.

Should value investors be considering Bunge in 2022?

What else do you need to know about the O'Shaughnessy Strategy?

Tune into this week's podcast to find out.

Why Haven't You Looked at Zacks' Top Stocks?

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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