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Zacks Value Trader Highlights: Wells Fargo, Toll Brothers, Skechers, JD.com and PagSeguro Digital
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For Immediate Release
Chicago, IL – November 13, 2023 – 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/2182544/5-classic-value-stocks-that-also-have-growth)
5 Classic Value Stocks Than Also Have Growth
Welcome to Episode #349 of the Value Investor Podcast.
(1:00) - Finding Small Cap Value Stocks For Your Portfolio
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Stocks remain cheap after the recent stock market correction but what about cheap stocks that also have earnings growth?
That's a rare combination.
Or is it?
Screening for Classic Value Stocks
Tracey ran a screen that is on Zacks "Basic" screens called "Classic Value Stocks with Growth." Sounds simple, right?
It looks for stocks with high historical 5-year earnings growth, strong growth for this year and the classic value fundamentals of a low P/E, PEG, P/S and P/B ratios.
This screen does not include the Zacks Rank, however. It's one of Zacks' free basic screens available to anyone.
Running this screen, it produced 54 stocks. That's a lot of cheap stocks. Obviously, some may be Zacks Strong Sells. But Tracey pulled out 5 to take a closer look and none of those 5 were Strong Sells.
Wells Fargo is a big, cheap national bank. It has a forward P/E of 7.8. But bank investors often look to P/B ratios to determine cheapness. You buy at a P/B ratio at 1.0 and sell at 2.0.
Wells Fargo has a P/B ratio of just 0.9. It also pays a dividend, currently yielding 3.4%.
Wells Fargo is a Zacks Rank #2 (Buy) stock. Should it be on your short list?
Toll Brothers is a luxury homebuilder. Even though shares are up 57% year-to-date, it's still a cheap stock.
Toll Brothers trades with a forward P/E of just 6.6 and a PEG ratio of 0.7. A PEG under 1.0 indicates a company has both value and growth. It's a Zacks Rank #2 (Buy) stock.
Is it time to consider a homebuilder like Toll Brothers?
Skechers is a global shoe and accessory retailer. It was the most expensive stock on the screen by P/E ratio. It trades with a forward P/E of 14.6. But Skechers also has a P/S ratio under 1.0 at 0.98. A P/S ratio under 1.0 indicates a company is undervalued.
Shares of Skechers are up 18.3% year-to-date. It's a Zacks Rank #2 (Buy).
Should investors trust in a retailer like Skechers heading into 2024?
JD.com is a supply chain-based technology and services provider in China. Shares of JD.com have sunk this year, falling 54.1% to multi-year lows. The stock is very cheap.
JD.com trades with a forward PE of 9.1. It also has a low P/S ratio of just 0.2.
Yet, JD.com is still a Zacks Rank #3 (Hold).
Should some of the Chinese companies, like JD.com, be on your short list?
PagSeguro operates PagBank in Brazil, which has two business units: Merchant Acquiring and Financial Services. It will report third quarter earnings on Nov 16, 2023, after the market closes.
Shares of PagSeguro are down 15.1% year-to-date. It's very cheap, with a forward P/E of just 7.4. It also has a P/S ratio of 0.8.
PagSeguro is a Zacks Rank #3 (Hold).
Should investors look outside of the United States for their cheap stocks?
What Else Do You Need to Know About Classic Value Stocks?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.
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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: Wells Fargo, Toll Brothers, Skechers, JD.com and PagSeguro Digital
For Immediate Release
Chicago, IL – November 13, 2023 – 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/2182544/5-classic-value-stocks-that-also-have-growth)
5 Classic Value Stocks Than Also Have Growth
Welcome to Episode #349 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.
Stocks remain cheap after the recent stock market correction but what about cheap stocks that also have earnings growth?
That's a rare combination.
Or is it?
Screening for Classic Value Stocks
Tracey ran a screen that is on Zacks "Basic" screens called "Classic Value Stocks with Growth." Sounds simple, right?
It looks for stocks with high historical 5-year earnings growth, strong growth for this year and the classic value fundamentals of a low P/E, PEG, P/S and P/B ratios.
This screen does not include the Zacks Rank, however. It's one of Zacks' free basic screens available to anyone.
Running this screen, it produced 54 stocks. That's a lot of cheap stocks. Obviously, some may be Zacks Strong Sells. But Tracey pulled out 5 to take a closer look and none of those 5 were Strong Sells.
Coincidence?
5 Classic Value Stocks That Also Have Growth
1. Wells Fargo & Co. (WFC - Free Report)
Wells Fargo is a big, cheap national bank. It has a forward P/E of 7.8. But bank investors often look to P/B ratios to determine cheapness. You buy at a P/B ratio at 1.0 and sell at 2.0.
Wells Fargo has a P/B ratio of just 0.9. It also pays a dividend, currently yielding 3.4%.
Wells Fargo is a Zacks Rank #2 (Buy) stock. Should it be on your short list?
2. Toll Brothers, Inc. (TOL - Free Report)
Toll Brothers is a luxury homebuilder. Even though shares are up 57% year-to-date, it's still a cheap stock.
Toll Brothers trades with a forward P/E of just 6.6 and a PEG ratio of 0.7. A PEG under 1.0 indicates a company has both value and growth. It's a Zacks Rank #2 (Buy) stock.
Is it time to consider a homebuilder like Toll Brothers?
3. Skechers U.S.A., Inc. (SKX - Free Report)
Skechers is a global shoe and accessory retailer. It was the most expensive stock on the screen by P/E ratio. It trades with a forward P/E of 14.6. But Skechers also has a P/S ratio under 1.0 at 0.98. A P/S ratio under 1.0 indicates a company is undervalued.
Shares of Skechers are up 18.3% year-to-date. It's a Zacks Rank #2 (Buy).
Should investors trust in a retailer like Skechers heading into 2024?
4. JD.com, Inc. (JD - Free Report)
JD.com is a supply chain-based technology and services provider in China. Shares of JD.com have sunk this year, falling 54.1% to multi-year lows. The stock is very cheap.
JD.com trades with a forward PE of 9.1. It also has a low P/S ratio of just 0.2.
Yet, JD.com is still a Zacks Rank #3 (Hold).
Should some of the Chinese companies, like JD.com, be on your short list?
5. PagSeguro Digital Ltd. (PAGS - Free Report)
PagSeguro operates PagBank in Brazil, which has two business units: Merchant Acquiring and Financial Services. It will report third quarter earnings on Nov 16, 2023, after the market closes.
Shares of PagSeguro are down 15.1% year-to-date. It's very cheap, with a forward P/E of just 7.4. It also has a P/S ratio of 0.8.
PagSeguro is a Zacks Rank #3 (Hold).
Should investors look outside of the United States for their cheap stocks?
What Else Do You Need to Know About Classic Value Stocks?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.
Media Contact
Zacks Investment Research
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support@zacks.com
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.