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Zacks Value Investor Highlights: Caleres, Andersons, Mosaic, Carrols Restaurant Group and Target
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For Immediate Release
Chicago, IL – September 7, 2018 – Zacks Value Investor 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/321655/a-rare-combination-value-stocks-with-momentum)
A Rare Combination: Value Stocks with Momentum
Welcome to Episode #108 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 do value investors do when stocks are trading near their all-time highs?
They buy value stocks that are also trading near their highs.
Are there value stocks with momentum in this market?
And how do you find them?
Running a Screen to Find Momentum Stocks
You can screen to find value stocks with momentum, or, at least, those stocks that are trading close to their highs.
Look for stocks with a Zacks Value Style Score of A, which is the highest score. The value style score isn’t like a classic value fundamental. It combines several value fundamentals but also takes into account a company’s peers in its industry to come up with the value score.
This is a broader valuation metric than just using the P/E or P/B ratios.
For momentum, you can screen for stocks trading within 10% of their 52-week high. This doesn’t guarantee momentum, but it will get you pretty close.
To get the added juice of the Zacks Rank, you can add a Rank of #1 (Strong Buy) or #2 (Buy). This should get you rising earnings estimates which is what we want.
Finding Hidden Value Stocks
Running this screen, it returned 36 stocks.
That’s not too bad given the narrow parameters.
These stocks included many names that have been ignored by Mom and Pop investors for a while now. It’s not surprising that they are value stocks. Usually value means that the Street is ignoring it or running away from it for some reason.
But they now have momentum, so someone on Wall Street is certainly paying attention.
5 Value Stocks with Momentum
1. Caleres Inc. (CAL - Free Report) operates Famous Footwear stores and owns other shoe brands including Sam Edelman and Naturalizer. Shares hit new 52-week highs on its earnings and are now up about 10% year-to-date. It has a forward P/E of just 16 and investors get a dividend, currently yielding 0.7%.
2. The Andersons (ANDE - Free Report) hasn’t made a value stock list in a long time. Earnings estimates have been cut over the past few years on the agriculture and fertilizer stocks. But things are starting to turn around. These shares were up 27% year-to-date as its Plant Nutrient, Grain Group and Rail Group divisions recover.
3. Mosaic (MOS - Free Report) is one of the large potash and phosphate fertilizer companies. In early August it raised full year earnings guidance as it expects recent potash momentum to continue. Shares are up nearly 15% year-to-date.
4. Carrols Restaurant Group (TAST - Free Report) is better known as the largest Burger King franchisee in the United States. In the second quarter, same-store-sales rose 5% after posting 4.6% in the prior year. That’s among the strongest comps in the industry. It has a forward P/E of 45, however, so how can it be a value stock?
5. Target Corp. (TGT) had its best comparable sales in 13 years in the second quarter, coming in up 6.5%. It was so good, Target raised its comp sales and earnings guidance for the second half of the year. The shares are up nearly 34% year-to-date and have broken out to 5-year highs. Is it too late to buy the retailers?
Value investors don’t need to miss out on the stock rally.
There are plenty of attractively valued companies that value investors can dive into if only investors bother to look.
What else do you need to know about value stocks with momentum?
Find out on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Restaurant Recommendations:In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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.
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/performance for information about the performance numbers displayed in this press release.
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Zacks Value Investor Highlights: Caleres, Andersons, Mosaic, Carrols Restaurant Group and Target
For Immediate Release
Chicago, IL – September 7, 2018 – Zacks Value Investor 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/321655/a-rare-combination-value-stocks-with-momentum)
A Rare Combination: Value Stocks with Momentum
Welcome to Episode #108 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 do value investors do when stocks are trading near their all-time highs?
They buy value stocks that are also trading near their highs.
Are there value stocks with momentum in this market?
And how do you find them?
Running a Screen to Find Momentum Stocks
You can screen to find value stocks with momentum, or, at least, those stocks that are trading close to their highs.
Look for stocks with a Zacks Value Style Score of A, which is the highest score. The value style score isn’t like a classic value fundamental. It combines several value fundamentals but also takes into account a company’s peers in its industry to come up with the value score.
This is a broader valuation metric than just using the P/E or P/B ratios.
For momentum, you can screen for stocks trading within 10% of their 52-week high. This doesn’t guarantee momentum, but it will get you pretty close.
To get the added juice of the Zacks Rank, you can add a Rank of #1 (Strong Buy) or #2 (Buy). This should get you rising earnings estimates which is what we want.
Finding Hidden Value Stocks
Running this screen, it returned 36 stocks.
That’s not too bad given the narrow parameters.
These stocks included many names that have been ignored by Mom and Pop investors for a while now. It’s not surprising that they are value stocks. Usually value means that the Street is ignoring it or running away from it for some reason.
But they now have momentum, so someone on Wall Street is certainly paying attention.
5 Value Stocks with Momentum
1. Caleres Inc. (CAL - Free Report) operates Famous Footwear stores and owns other shoe brands including Sam Edelman and Naturalizer. Shares hit new 52-week highs on its earnings and are now up about 10% year-to-date. It has a forward P/E of just 16 and investors get a dividend, currently yielding 0.7%.
2. The Andersons (ANDE - Free Report) hasn’t made a value stock list in a long time. Earnings estimates have been cut over the past few years on the agriculture and fertilizer stocks. But things are starting to turn around. These shares were up 27% year-to-date as its Plant Nutrient, Grain Group and Rail Group divisions recover.
3. Mosaic (MOS - Free Report) is one of the large potash and phosphate fertilizer companies. In early August it raised full year earnings guidance as it expects recent potash momentum to continue. Shares are up nearly 15% year-to-date.
4. Carrols Restaurant Group (TAST - Free Report) is better known as the largest Burger King franchisee in the United States. In the second quarter, same-store-sales rose 5% after posting 4.6% in the prior year. That’s among the strongest comps in the industry. It has a forward P/E of 45, however, so how can it be a value stock?
5. Target Corp. (TGT) had its best comparable sales in 13 years in the second quarter, coming in up 6.5%. It was so good, Target raised its comp sales and earnings guidance for the second half of the year. The shares are up nearly 34% year-to-date and have broken out to 5-year highs. Is it too late to buy the retailers?
Value investors don’t need to miss out on the stock rally.
There are plenty of attractively valued companies that value investors can dive into if only investors bother to look.
What else do you need to know about value stocks with momentum?
Find out on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Restaurant Recommendations:In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
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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/performance for information about the performance numbers displayed in this press release.