Back to top

Image: Bigstock

Zacks Value Trader Highlights: Allstate, Best Buy, Sysco, Walmart and Centene

Read MoreHide Full Article

For Immediate Release

Chicago, IL – March 22, 2019 – 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:


The Secret Value Stock Screen to Use Now

Welcome to Episode #134 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.

With stocks still rallying to start 2019, it’s been hard for value investors to find true value stocks.

The old price-to-earnings screens simply aren’t going to cut it in this type of market.

That’s why value investors have to take a fresh look at how they search for value stocks.

How Do You Screen for Value?

Most value investors simply use the P/E or the PEG when looking for value stocks. There’s nothing wrong with those screens.

But one of Tracey’s favorite value fundamentals is the price-to-sales (P/S) ratio.

A P/S ratio under 1.0 means that an investor is getting the sales on sale. Investors are paying less than the sales are worth for the sales.

The Secret Screen for Value

The secret screen includes a P/S ratio under 1.0 as well as the Zacks Rank of #1 (Strong Buy) and #2 (Buy). These should hopefully be stocks that are seeing rising earnings estimates.

We want only the best and the Zacks Rank allows us to narrow the universe.

This screen returned 176 stocks.

That’s a lot to dig into, so a market cap above $500 million was also added to exclude the microcaps.

The screen then returned 125 stocks.

That gave us plenty of choice.

5 Stocks with Attractive P/S Ratios

1.       Allstate (ALL - Free Report) , the property insurer, has a P/S ratio of just 0.8. But it’s also cheap on a P/E basis, with a forward P/E of 10.2. Shares have been weak in 2019, falling 8.1% year-to-date. Could this be a buying opportunity?

2.       Best Buy (BBY - Free Report) shares are down 12.8% year-to-date which has pushed them into the value category. It has a P/S ratio of just 0.4. It also pays a dividend, currently yielding 2.9%.

3.       Sysco (SYY - Free Report) , the food distributor, has a P/S ratio of just 0.6. Earnings for fiscal 2019 are expected to rise 8.3% and another 10.4% in fiscal 2020. Investors also get a dividend, currently yielding 2.4%.

4.       Walmart (WMT - Free Report) is cheap by a P/S ratio metric as it’s P/S is just 0.6. However, it’s forward P/E is on the high side, at 21. Do you buy the cheap sales even though you’re paying more for the earnings? Walmart does reward shareholders with a dividend yielding 2.1%.

5.       Centene Corp. (CNC - Free Report) is a health insurer. The health insurers/HMOs have been hit hard in 2019 on fears of “Medicare-for-all” even though there is no actual legislation for it. Year-to-date, the shares are up just 2.4%. It’s cheap with a forward P/E of 14.2 and a P/S ratio of just 0.4. Earnings are also expected to rise 19.5% in 2019.

What else should you know about screening for value stocks in 2019?

Listen to this week’s podcast to find out.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Zacks Investment Research

800-767-3771 ext. 9339


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 for information about the performance numbers displayed in this press release.