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5 Top Value Stocks that are Breaking Out

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  • (0:45) - Are Value Stocks Gaining Momentum?
  • (3:40) - Stock Screener Criteria
  • (6:50) - Tracey’s Top Stock Picks
  • (15:15) - Episode Roundup: HEES, INTC, BLDR, SNE, PSX

Welcome to Episode #164 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.

Growth stocks continue to falter in the second half of 2019 but with the major large cap indexes hitting new all-time highs again, something has to be leading it higher.

Value stocks are back in the spotlight again.

A cheap stock that is also at new highs? Sign me up.

But how do you find such rare creatures?

Screening for Value Stocks that are Breaking Out

To get breakouts, the screen must include stocks trading within 10% of their 52-week highs.

But that only gets you part of the story.

Adding the Zacks Ranks of #1 (Strong Buy) and #2 (Buy) should also get companies with rising earnings estimates.

To find value stocks, add the Zacks Style Score for Value of A, which is the top score.

This screen returned 34 companies.

5 Top Value Stocks that are Breaking Out

1.       H&E Equipment Services (HEES - Free Report) operates in equipment services including rentals. This is an infrastructure play. Shares are up 68.7% and are trading at their 52-week highs. It’s cheap with a forward P/E of just 14.3 and investors get a dividend currently yielding 3.2%.

2.       Intel (INTC - Free Report) is trading within 8% of its 52-week high and is up 22% on the year. It’s forward P/E is just 12.5.

3.       Builders FirstSource, Inc. (BLDR - Free Report) is at new 52-week highs, up 109% year-to-date. This building materials company is really cheap with a forward P/E of 12.9 and a Price-to-Sales ratio of 0.4.

4.       Sony continues to be one of the few media and gaming companies that is being overlooked by the Street. But maybe they have finally caught on as shares are at the 52-week highs, up 25% year-to-date. It has a P/S ratio of 1.0, which is right on the edge of being a value.

5.       Phillips 66 (PSX - Free Report) is a surprise on this list because it’s in the energy industry, which has seen tough times in 2019. But this 4th largest refiner in the United States is trading near its 52-week high, up 34% year-to-date. It’s also cheap with a forward P/E of just 14.1 and investors get a dividend yielding 3.1%.

What else should you know about value stocks with momentum?

Tune into this week’s podcast to find out.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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