We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually ‘catch up’ and recognize their true value, which can lead to serious gains.
After all, we all enjoy a good deal.
And the strategy can become even more lucrative when adding in the Zacks Rank, allowing us to find stocks that analysts have recently become optimistic about.
Three top-ranked stocks trading at enticing valuation levels – JD.com (JD - Free Report) , KB Home (KBH - Free Report) , and AllianceBernstein (AB - Free Report) – could all be considered. Let’s take a closer look at each.
JD.com
JD.com operates as an online direct sales company in China. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations drifting higher across multiple timeframes.
Shares presently trade at a 7.8X forward 12-month earnings multiple, a fraction of the 39.0X five-year median and five-year highs of 84.9X. The forward 12-month price-to-sales ratio resies at 0.3X, above nicely beneath the 0.5X five-year median.
The company’s quarterly consistency is worthy of highlighting, beating the Zacks Consensus EPS estimate in each of its last ten releases. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
KB Home
KB Home is a well-known homebuilder in the United States. Analysts have become bullish across the board, raising their earnings expectations and pushing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Shares presently trade at a 7.3X forward 12-month earnings multiple, a few ticks beneath the five-year median and highs of 12.5X in 2020. The forward 12-month price-to-sales ratio presently stands at 0.6X, again beneath five-year highs of 0.8X.
AllianceBernstein
AllianceBernstein, a current Zacks Rank #2 (Buy), provides diversified investment management services, primarily to pension funds, endowments, foreign financial institutions, and individual investors.
The revisions trend for its current fiscal year has shifted notably positive since the beginning of 2024, with the $3.05 Zacks Consensus EPS estimate suggesting 14% year-over-year growth.
Image Source: Zacks Investment Research
Shares presently trade at a 10.2X forward 12-month earnings multiple, nicely beneath the 11.5X five-year median and highs of 16.3X in 2022. The forward 12-month price-to-sales ratio stands at 1.0X, in line with the five-year median and beneath highs of 1.5X in 2021.
Bottom Line
Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.
And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it’s much easier to find mispriced stocks with great near-term potential.
All three stocks above – JD.com (JD - Free Report) , KB Home (KBH - Free Report) , and AllianceBernstein (AB - Free Report) – could entice value-focused investors, further underpinned by their Style Scores of ‘A’ and 'B' for Value.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Buy-Rated Stocks Fit for Value Investors
Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually ‘catch up’ and recognize their true value, which can lead to serious gains.
After all, we all enjoy a good deal.
And the strategy can become even more lucrative when adding in the Zacks Rank, allowing us to find stocks that analysts have recently become optimistic about.
Three top-ranked stocks trading at enticing valuation levels – JD.com (JD - Free Report) , KB Home (KBH - Free Report) , and AllianceBernstein (AB - Free Report) – could all be considered. Let’s take a closer look at each.
JD.com
JD.com operates as an online direct sales company in China. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations drifting higher across multiple timeframes.
Shares presently trade at a 7.8X forward 12-month earnings multiple, a fraction of the 39.0X five-year median and five-year highs of 84.9X. The forward 12-month price-to-sales ratio resies at 0.3X, above nicely beneath the 0.5X five-year median.
The company’s quarterly consistency is worthy of highlighting, beating the Zacks Consensus EPS estimate in each of its last ten releases. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
KB Home
KB Home is a well-known homebuilder in the United States. Analysts have become bullish across the board, raising their earnings expectations and pushing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Shares presently trade at a 7.3X forward 12-month earnings multiple, a few ticks beneath the five-year median and highs of 12.5X in 2020. The forward 12-month price-to-sales ratio presently stands at 0.6X, again beneath five-year highs of 0.8X.
AllianceBernstein
AllianceBernstein, a current Zacks Rank #2 (Buy), provides diversified investment management services, primarily to pension funds, endowments, foreign financial institutions, and individual investors.
The revisions trend for its current fiscal year has shifted notably positive since the beginning of 2024, with the $3.05 Zacks Consensus EPS estimate suggesting 14% year-over-year growth.
Image Source: Zacks Investment Research
Shares presently trade at a 10.2X forward 12-month earnings multiple, nicely beneath the 11.5X five-year median and highs of 16.3X in 2022. The forward 12-month price-to-sales ratio stands at 1.0X, in line with the five-year median and beneath highs of 1.5X in 2021.
Bottom Line
Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.
And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it’s much easier to find mispriced stocks with great near-term potential.
All three stocks above – JD.com (JD - Free Report) , KB Home (KBH - Free Report) , and AllianceBernstein (AB - Free Report) – could entice value-focused investors, further underpinned by their Style Scores of ‘A’ and 'B' for Value.