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Welcome to Episode #86 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.
What a difference a few weeks can make. The FANG stocks went from hitting new all-time highs to being in bear market territory in short order.
But their sell off has created a value stock buying opportunity. It has pulled down the rest of the stock market resulting in a stock sale.
Why not take a look at the best of the cheap stocks while you have a chance?
Screening for Cheap Zacks #1 Rank Stocks
Anyone can buy a cheap stock. But why not buy one that also is a Zacks Rank #1 (Strong Buy)?
This is an exclusive club. Currently, there are only 223 Zacks Rank #1 stocks out of the entire Zacks universe of coverage, which is about 4400 stocks.
Tracey then added a forward P/E under 10 in order to get the super cheap stocks.
Thirty stocks qualified, which isn’t too bad given that cheap stocks have been pretty rare in 2018.
Here are 5 that she thought were the most interesting.
5 Dirt Cheap ‘Strong Buy’ Stocks
General Motors (GM - Free Report) has been cheap for a while. It trades with a forward P/E of 5.8 and has a PEG of 0.7. But 2018 estimates show an earnings decline, which is a red flag. Is GM a value trap?
The Chemours Company (CC - Free Report) is a global chemical company that was spun-off from DuPont in 2015. It has a forward P/E of just 9 and it’s expected to grow earnings by 38.7% in 2018. It’s got that rare combination of growth and value yet few are talking about it. That’s a sign of a classic value stock.
Macy’s (Mis off its 2017 lows and is still cheap with a forward P/E of just 7.7. But earnings are expected to decline 3.7% in fiscal 2018 even though analysts have been raising estimates. Investors still get the 5.3% dividend yield, however. Is it a value trap?
Micron (MU - Free Report) has been a perennial favorite on the “value stock or trap” podcasts. It’s still cheap, with a forward P/E of just 5.1. The analysts liked what they heard in the last earnings call, as 7 estimates are higher since then for fiscal 2018 and 4 are higher for fiscal 2019. But is it starting to show signs of a being a value trap?
Vale (VALE - Free Report) is a Brazilian iron ore and nickel miner. Shares have fallen over 4% in 2018 and are still cheap, with a forward P/E of just 8.6. Earnings are expected to rise 9% in 2018. Should you be looking outside the US for your bargain stocks?
These are the best of the cheap stocks.
There are other stocks with P/Es as low as 2 and 3.
But just because they’re cheap, that doesn’t mean you should be investing in them.
The Zacks #1 Rank gives you an edge. It means that the analysts are in agreement about the earnings estimates: that they are rising.
What else should you know about buying cheap strong buy stocks?
Tune into this week’s podcast to find out.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Image: Bigstock
5 Dirt Cheap 'Strong Buy' Stocks
Welcome to Episode #86 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.
What a difference a few weeks can make. The FANG stocks went from hitting new all-time highs to being in bear market territory in short order.
But their sell off has created a value stock buying opportunity. It has pulled down the rest of the stock market resulting in a stock sale.
Why not take a look at the best of the cheap stocks while you have a chance?
Screening for Cheap Zacks #1 Rank Stocks
Anyone can buy a cheap stock. But why not buy one that also is a Zacks Rank #1 (Strong Buy)?
This is an exclusive club. Currently, there are only 223 Zacks Rank #1 stocks out of the entire Zacks universe of coverage, which is about 4400 stocks.
Tracey then added a forward P/E under 10 in order to get the super cheap stocks.
Thirty stocks qualified, which isn’t too bad given that cheap stocks have been pretty rare in 2018.
Here are 5 that she thought were the most interesting.
5 Dirt Cheap ‘Strong Buy’ Stocks
These are the best of the cheap stocks.
There are other stocks with P/Es as low as 2 and 3.
But just because they’re cheap, that doesn’t mean you should be investing in them.
The Zacks #1 Rank gives you an edge. It means that the analysts are in agreement about the earnings estimates: that they are rising.
What else should you know about buying cheap strong buy stocks?
Tune into this week’s podcast to find out.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>