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Zacks Value Trader Highlights: G-III Apparel, General Motors, Legg Mason, Mallinckrodt and United Natural Foods

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For Immediate Release

Chicago, IL – April 12, 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:

(https://www.zacks.com/stock/news/379312/lessons-from-my-favorite-book-for-value-investors)

Lessons from My Favorite Book for Value Investors

A top book for beginning investors to consider is “The Little Book of Value Investing” by Christopher H. Browne.

Published in 2008, it’s just 208 pages and is, literally, “little”, so it can be read quickly, on either the bus or the subway in just a few trips.

It provides great tips and tidbits for value investors including the key chapters on how to research a company through its financial statements, before buying.

Lessons Learned from the Book

1.       Chapter One says it all: “Buy Stocks Like Steaks…On Sale.”

2.       Buy earnings on the cheap

3.       Buy when the insiders buy

4.       Ask more questions about the business, such as what is the product growth, competition, cost control?

Screening for Classic Value Stocks

Once you read the book, you’ll want to find some value stocks.

Zacks.com has a great classic value stock screen which applies the Zacks Ranks of #1 (Strong Buy) or #2 (Buy) along with P/E, PEG, P/Cash Flow, P/B, and P/S ratio.

This is a narrow screen but it still returned 15 stocks.

5 Stocks with Classic Value Fundamentals

1.       G-III Apparel Group (GIII - Free Report) is one of the largest apparel and accessory retailers in the United States. Its brands include DKNY, Donna Karan, Karl Lagerfeld, Calvin Klein, and Tommy Hilfiger among others. It operates its own stores and sells wholesale to specialty and department stores. Earnings are expected to grow 15.4% in fiscal 2020. It’s cheap, with a forward P/E of 12.5.

2.       General Motors (GM - Free Report) is still expected to have falling earnings in 2019 and 2020 but investors have been diving in. Shares are up 16% year-to-date. It’s still dirt cheap, however, with a forward P/E of 6.

3.       Legg Mason (LM), the global asset management firm is also cheap even though shares are up 19% year-to-date. It has a PEG ratio of just 0.7. Investors also get rewarded with a dividend, currently yielding 4.8%.

4.       Mallinckrodt , the specialty pharmaceutical company, is trading with a forward P/E o just 2.9. It has a P/S ratio of just 0.7. Is this a buying opportunity for a bigger company to get it on the cheap?

5.       United Natural Foods (UNFI - Free Report) is a wholesale distributor of over 100,000 products. It’s dirt cheap, with a forward P/E of just 6.7 and a PEG of 0.9. Shares have fallen 69% over the last year but have rebounded 27% year-to-date.

One of the key lessons of the book is to always do your research.

What else should investors know about being a value investor?

Listen to this week’s podcast to find out.

[In full disclosure, the author of this article owns shares of GIII in her personal portfolio.]

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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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General Motors Company (GM) - free report >>

United Natural Foods, Inc. (UNFI) - free report >>

G-III Apparel Group, LTD. (GIII) - free report >>

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