- (0:20) - Stocks At All Time Highs: Where Is The Value?
- (2:10) - Style Score Stock Screener
- (4:15) - Tracey's Top Stock Picks
- (9:45) - Recognize Real Value: Why Are The Earnings Growing?
- (12:15) - Episode Roundup: Podcast@Zacks.com
Welcome to Episode #59 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Stocks are at it again. The S&P 500 and the Dow Industrials are hitting new all-time highs nearly daily.
That has left value investors a bit depressed. Some of the biggest value investor names in the business have said they simply can’t find anything to buy right now.
But if you can’t beat them, why not join them?
Finding Value Stocks in an Expensive Market
Tracey ran a screen to see if there were value stocks, with Zacks Ranks of #1 (Strong Buy) or #2 (Buy), that were breaking out like the rest of the stock market.
Using the Zacks Style Score for Value indicator of A, which is the highest ranking on the value scores, her screen returned 35 stocks. She picked out the 5 most interesting names.
Those value investors who only buy classic value stocks, i.e. those with low P/Es, P/Bs, and P/S ratios, might scoff at a few of the names on this list. But the Style Score finds value in companies as compared to their peers and industry.
Some of these stocks still had classic value characteristics, but some are considered “values” as against their peers or industry.
5 Value Stocks That Are Breaking Out
1. American Movil (AMX - Free Report) , the Mexican telecom giant, it trading with a forward P/E of just 12.7 even though shares are up 47% year-to-date.
2. Werner Enterprises (WERN - Free Report) , an Omaha freight and trucking company, is expected to see double digit earnings growth this year and next.
3. Casella Waste Systems (CWST - Free Report) provides waste and recycling services in 34 states for homeowners. Earnings are expected to rise 198% in 2017. Shares have jumped 42% year-to-date.
4. Carnival Corporation (CCL - Free Report) is cashing in on the strong global economy and the desire for travel. This cruise company is trading with a forward P/E of 18.1 even as shares have risen 30% in 2017.
5. JA Solar Holdings (JASO - Free Report) , the Chinese solar cell and solar module company, has a forward P/E of just 13.1 even though shares are up 72% year-to-date. Earnings estimates have skyrocketed. Will they actually see that earnings growth?
Remember, this was just a screen of possible value stocks trading near their 52-week highs.
Tracey emphasized that all investors need to do their homework and dig down deeper into the fundamentals of these, and any, company they are considering investing in. Go beyond the basic screen.
What else should you know about value stocks that are breaking out?
Tune into this week’s podcast to find out.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don’t follow the herd.
If that is your style of investing, be sure to check out Tracey’s weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
Click here to learn more>>>