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Welcome to Episode #304 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.
There are plenty of value stocks in 2022, but how many of them are good quality value and not value traps?
Screening for High Ranked Cheap Stocks
Tracey screened for stocks with the highest Zacks Rank of #1 (Strong Buy) and forward P/Es under 20 and P/S ratios under 1.0.
Hopefully, that high Zacks Rank means that something positive is going on at the company, as analysts are likely raising earnings estimates.
And in an economic climate where the Federal Reserve is raising interest rates and trying to slow the economy to bring inflation down, why not look for companies that analysts are bullish on, instead of bearish?
Ethan Allen Interiors is a furniture retailer who makes 75% of its products in North America. It has a stellar balance sheet, with no debt.
Shares of Ethan Allen are down 2.1% year-to-date but that’s still outperforming the S&P 500 which is down 22%.
Ethan Allen is dirt cheap with a forward P/E of 7.4. It also pays a dividend, currently yielding a juicy 4.9%.
Is Ethan Allen a hidden gem?
4. NexTier Oilfield Services
NexTier Oilfield Services specializes in integrated land-based completions in the energy industry. The services companies were out of favor until 2022, but not anymore.
NexTier Oilfield Services is expected to see earnings growth of 425% this year and another 57.6% earnings growth in 2023.
Shares of NexTier Oilfield Services have soared in 2022. They are up 188% year-to-date.
But NexTier is still cheap. It trades with a forward P/E of 7.2.
Is it too late to get into NexTier Oilfield Services?
JinkoSolar is a Chinese solar company that has been in business since 2006. Earnings estimates are on the move higher for JinkoSolar, with earnings expected to be up 115% in 2022 and 68.4% in 2023.
Shares of JinkoSolar are up 5.5% year-to-date but remain cheap, with a forward P/E of 13.1.
It doesn’t pay a dividend.
Should you get back into the solar stocks in 2022?
What Else Should You Know About the High Ranked Cheap Stocks?
Tune into this week’s podcast to find out.
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5 Top Ranked Cheap Stocks
Welcome to Episode #304 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.
There are plenty of value stocks in 2022, but how many of them are good quality value and not value traps?
Screening for High Ranked Cheap Stocks
Tracey screened for stocks with the highest Zacks Rank of #1 (Strong Buy) and forward P/Es under 20 and P/S ratios under 1.0.
Hopefully, that high Zacks Rank means that something positive is going on at the company, as analysts are likely raising earnings estimates.
And in an economic climate where the Federal Reserve is raising interest rates and trying to slow the economy to bring inflation down, why not look for companies that analysts are bullish on, instead of bearish?
The screen returned 33 stocks.
5 Top Ranked Cheap Stocks
1. Bunge Limited (BG - Free Report)
Bunge, which is a food ingredient company that connects farmers to the consumer, is also one of the largest oilseed processing companies.
Shares of Bunge are up 6% year-to-date but are off their 2022 highs which happened at the start of the Ukraine War.
Bunge’s forward P/E is just 7.4. It also pays a dividend yielding 2.5%.
Estimates are on the move higher for 2023 as analysts got too pessimistic about Bunge next year.
Is it a buying opportunity in Bunge?
2. Archer-Daniels-Midland Company (ADM - Free Report)
Archer-Daniels-Midland is also a food ingredient company. It’s old advertising tag line was “supermarket to the world.”
Shares of Archer-Daniels-Midland are up 42.5% year-to-date and are pressuring the 52-week highs.
Earnings are expected to fall 14.7% in 2023, but 3 estimates have been revised higher in the last week.
Archer-Daniels-Midland is cheap, with a P/S ratio of just 0.5. It also pays a dividend, yielding 1.7%.
Should Archer-Daniels-Midland be on your short list?
3. Ethan Allen Interiors Inc. (ETD - Free Report)
Ethan Allen Interiors is a furniture retailer who makes 75% of its products in North America. It has a stellar balance sheet, with no debt.
Shares of Ethan Allen are down 2.1% year-to-date but that’s still outperforming the S&P 500 which is down 22%.
Ethan Allen is dirt cheap with a forward P/E of 7.4. It also pays a dividend, currently yielding a juicy 4.9%.
Is Ethan Allen a hidden gem?
4. NexTier Oilfield Services
NexTier Oilfield Services specializes in integrated land-based completions in the energy industry. The services companies were out of favor until 2022, but not anymore.
NexTier Oilfield Services is expected to see earnings growth of 425% this year and another 57.6% earnings growth in 2023.
Shares of NexTier Oilfield Services have soared in 2022. They are up 188% year-to-date.
But NexTier is still cheap. It trades with a forward P/E of 7.2.
Is it too late to get into NexTier Oilfield Services?
5. JinkoSolar (JKS - Free Report)
JinkoSolar is a Chinese solar company that has been in business since 2006. Earnings estimates are on the move higher for JinkoSolar, with earnings expected to be up 115% in 2022 and 68.4% in 2023.
Shares of JinkoSolar are up 5.5% year-to-date but remain cheap, with a forward P/E of 13.1.
It doesn’t pay a dividend.
Should you get back into the solar stocks in 2022?
What Else Should You Know About the High Ranked Cheap Stocks?
Tune into this week’s podcast to find out.