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Zacks Value Trader Highlights: Albemarle, Borg Warner, Cheniere Energy, Taiwan Semiconductor and ExxonMobil
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For Immediate Release
Chicago, IL – September 09, 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/1978370/ben-grahams-secret-weapon-the-peg-ratio)
Ben Graham's Secret Weapon: The PEG Ratio
Welcome to Episode #297 of the Value Investor Podcast.
(1:00) - Creating A Strong Value Wishlist: How To Use The PEG Ratio
(9:10) - Tracey’s Top Stock Picks
(21:50) - Episode Roundup: ALB, BWA, LNG, TSM, XOM
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
2022 has been a volatile year in the stock market. Many are expecting this fall to be volatile too.
If you're waiting on the sidelines, it's the perfect time to put together a value stock wish list.
And while you're looking for value stocks, why not also throw in growth? It's usually a rare combination.
Ben Graham's PEG Ratio
Ben Graham, the father of value investing and former boss of Warren Buffett, loved to use the PEG ratio to find stocks that weren't just cheap but that also have earnings growth.
The PEG ratio is a company's stock price over its earnings, the P/E ratio, divided by the earnings growth. You can find the PEG ratio on most financial sites.
Screening for the PEG Ratio
Zacks.com has a basic PEG screen in its premium screens. It includes the Zacks Ranks of #1 (Strong Buy) or #2 (Buy), which are the top Zacks Ranks.
It looks for the PEG ratio under 0.55. That's low as a PEG ratio under 1.0 usually indicates a company is undervalued.
The stocks have to be over $5 and it has a Current Average Broker Recommendation of 2.5.
This screen returned 50 stocks.
That's a LOT of value stocks that also have growth.
Borg Warner delivers innovative and sustainable mobility solutions for the vehicle market. It has segments in propulsion, air management, fuel systems and EV products, including charging stations.
Shares are down 16.7% year-to-date but Borg Warner is now dirt cheap. It trades with a forward P/E of 8.5.
Earnings are expected to rise just 2.9% in 2022 but 19% next year.
ExxonMobil is expected to grow earnings by 135% this year on rising oil and natural gas prices. The Zacks Consensus is looking for $12.69 versus $5.38 last year.
Shares of ExxonMobil are up 53% this year. But with the big earnings growth, it's still cheap with a forward P/E of 7.5.
ExxonMobil pays a big dividend, currently yielding 3.7%.
Is there still time to get into ExxonMobil in 2022?
What Else Should You Know About the PEG Ratio?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Albemarle, Borg Warner, Cheniere Energy, Taiwan Semiconductor and ExxonMobil
For Immediate Release
Chicago, IL – September 09, 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/1978370/ben-grahams-secret-weapon-the-peg-ratio)
Ben Graham's Secret Weapon: The PEG Ratio
Welcome to Episode #297 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.
2022 has been a volatile year in the stock market. Many are expecting this fall to be volatile too.
If you're waiting on the sidelines, it's the perfect time to put together a value stock wish list.
And while you're looking for value stocks, why not also throw in growth? It's usually a rare combination.
Ben Graham's PEG Ratio
Ben Graham, the father of value investing and former boss of Warren Buffett, loved to use the PEG ratio to find stocks that weren't just cheap but that also have earnings growth.
The PEG ratio is a company's stock price over its earnings, the P/E ratio, divided by the earnings growth. You can find the PEG ratio on most financial sites.
Screening for the PEG Ratio
Zacks.com has a basic PEG screen in its premium screens. It includes the Zacks Ranks of #1 (Strong Buy) or #2 (Buy), which are the top Zacks Ranks.
It looks for the PEG ratio under 0.55. That's low as a PEG ratio under 1.0 usually indicates a company is undervalued.
The stocks have to be over $5 and it has a Current Average Broker Recommendation of 2.5.
This screen returned 50 stocks.
That's a LOT of value stocks that also have growth.
5 Top Ranked Value Stocks with Earnings Growth
1. Albemarle (ALB - Free Report)
Albemarle is a lithium producer. It has raised earnings guidance twice already this year.
Albemarle's earnings are expected to rise 425% this year. The Zacks Consensus is looking for $21.24 compared to just $4.04 last year.
Shares are up 16.6% this year but shares are still cheap with a forward P/E of 12.6. Albemarle pays a dividend, currently yielding 0.6%.
Should Albemarle be on your value wish list?
2. Borg Warner (BWA - Free Report)
Borg Warner delivers innovative and sustainable mobility solutions for the vehicle market. It has segments in propulsion, air management, fuel systems and EV products, including charging stations.
Shares are down 16.7% year-to-date but Borg Warner is now dirt cheap. It trades with a forward P/E of 8.5.
Earnings are expected to rise just 2.9% in 2022 but 19% next year.
Should Borg Warner be on your value wish list?
3. Cheniere Energy (LNG - Free Report)
Cheniere Energy is an American liquified natural gas producer. On Aug 4, it raised its full year guidance.
Earnings are expected to be up 297% to $18.30 from a loss of $9.25 a year ago.
Shares of Cheniere Energy have jumped 53% this year.
Cheniere Energy has a forward P/E of just 8.7. It pays a dividend, currently yielding 0.8% and is also doing a share buyback.
Should Cheniere Energy be on your value wish list?
4. Taiwan Semiconductor (TSM - Free Report)
Taiwan Semiconductor has been on a slide all year. Shares are down 34% this year.
But earnings are expected to be up 53% this year but slow in 2023. Analysts have further earnings gains of just 3.5%.
Taiwan Semiconductor is cheap too, with a forward P/E of 12.7.
Will Taiwan Semiconductor get even cheaper by later this year?
5. ExxonMobil (XOM - Free Report)
ExxonMobil is expected to grow earnings by 135% this year on rising oil and natural gas prices. The Zacks Consensus is looking for $12.69 versus $5.38 last year.
Shares of ExxonMobil are up 53% this year. But with the big earnings growth, it's still cheap with a forward P/E of 7.5.
ExxonMobil pays a big dividend, currently yielding 3.7%.
Is there still time to get into ExxonMobil in 2022?
What Else Should You Know About the PEG Ratio?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.