5 Highly Ranked Cheap Stocks to Buy Now
(0:30) - Stock Screener: Is It Value Investors Time To Shine?
(4:00) - Tracey’s Top Stock Picks
(21:15) - Stocks To Keep On Your Watch List
(25:35) - Episode Roundup: KBH, ASX, ABG, FNKO, PVH, DDS, M
Welcome to Episode #261 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.
It’s a great time to be a value investor.
There are plenty of cheap stocks, with great fundamentals, as we head into 2022.
KB Home, ASE Technology, Asbury Automotive, Funko and PVH have cheap classic value fundamentals and are expected to grow earnings again in 2022.
They also are Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks.
5 Highly Ranked Cheap Stocks to Buy Now
1. KB Home KBH
KB Home is one of the largest home builders in the United States with new homes in 45 markets from coast to coast. People are still nesting and the housing market remains hot, with mortgage rates still near all-time lows.
KB Home is dirt cheap. It trades with a forward P/E of just 5.6 and has a PEG of 0.2.
Analysts are bullish about KB Home heading into 2022. Earnings are expected to jump 33% to $7.88 from $5.90 in 2021.
Shares have been weak the last 6 months, despite the bullish housing market conditions. KB Home is down 2.1% during that time, even though shares have gained 33% on the year.
Is this a buying opportunity in KB Home?
2. ASE Technology ASX
ASE Technology is a large cap chip testing and packaging firm headquartered in Taiwan. Zacks.com only has one analyst on the company.
But that analyst is bullish about ASE Technology heading into 2022.
ASE Technology is expected to make $0.90 per shares in 2022, up 18.4% from the $0.76 forecast for 2021.
ASE Technology also has great value fundamentals, with a P/E of just 10.6 and a P/S ratio of 0.9.
Shares have gone on sale over the last 3 months, falling 13.1% during that time.
Should ASE Technology be on your value stock wish list?
3. Asbury Automotive Group ABG
Asbury Automotive is one of the largest automotive retail and services companies in the United States. It operates 101 dealerships and 24 collision repair centers.
Asbury Automotive has been acquiring new dealerships in 2021. It recently announced the acquisition of Stevinson Automotive in the Denver market, which has revenue of $715 million.
Earnings are expected to rise 98% this year to $25.58 but 2022 is still looking strong with another 13% earnings growth to $28.96.
Asbury Automotive is down 8.7% in the last month and is now cheaper than ever.
It trades with a forward P/E of just 6.7 and has a PEG ratio of 0.4.
Should value investors be accumulating shares in Asbury Automotive heading into 2022?
4. Funko, Inc. FNKO
Funko is a pop culture company with popular brands such as Pop! and Loungefly. It sells products on its own e-commerce sites, at its Funko store in Hollywood and at third-party retailers.
Tracey owns shares of Funko in her own personal portfolio.
Earnings are expected to jump 240% in 2021 to $1.26 on the economic recovery.
But Funko is still expected to see further growth in 2022, with earnings expected to rise another 9.5% to $1.38.
Funko shares are up 65% year-to-date but have fallen 7.3% in the last month.
It is still cheap. Funko trades with a forward P/E of 13.6 and a PEG ratio of just 0.5. It’s a rare value stock that also has growth.
Should you be buying Funko to cash in on fandom in 2022?
5. PVH PVH
PVH is a large global retailer, which owns the Calvin Klein and Tommy Hilfiger brands.
PVH beat and raised in the third quarter, even though its Australia stores were closed in the quarter due to COVID.
Shares are up only 11.8% year-to-date and have fallen 15% in the last month.
Yet PVH remains cheap. It has a forward P/E of just 11 and a PEG of 0.3.
After a terrible fiscal 2020 due to the pandemic, PVH’s earnings have turned around this year and are expected to be up 571% to $9.29.
Analysts are bullish about Fiscal 2022, with earnings expected to rise 9.2% to $10.14.
Is PVH a buy on the stock weakness?
Tune Into This Week’s Podcast
What else should you know about these cheap stocks with strong earnings growth?
Tune into this week’s podcast to find out.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KB Home (KBH) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Asbury Automotive Group, Inc. (ABG) : Free Stock Analysis Report
ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
Funko, Inc. (FNKO) : Free Stock Analysis Report
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