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(1:00) - Stock Screener To Find Classic Value Stocks
(5:20) - Tracey’s Top Stock Picks
(15:30) - Episode Roundup: BSET, ESHO, F, GM, SNDR
Welcome to Episode #243 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 the major indexes again hitting new all-time highs, value investors are wondering, are there any cheap stocks?
It’s time to screen for classic value stocks and find out.
How to Screen for Classic Value Stocks
Classic value stocks are those that have solid value fundamentals like low price-to-earnings and price-to-book ratios.
These would be stocks that are old-school value, such that Benjamin Graham and Warren Buffett would have been interested in them.
This screen includes looking at the P/E, P/B, P/S ratios along with P/Cash Flow and PEG.
For an extra dose of valueness, you can add the Zacks Style Score for Value of A or B, both of which are the highest score.
Additionally, to get rising earnings estimates, you can screen for Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks.
Running this screen, you get 19 stocks.
That’s a lot of value stocks at a time when the big cap indexes are at new highs.
5 Dirt Cheap Stocks Right Now
1. Bassett Furniture BSET reported a strong second quarter with sales up 94% year-over-year and 15% over 2019. Shares are up 257% over the last year. Yet this furniture maker remains dirt cheap with a forward P/E of just 11.7 and a price-to-sales ratio of 0.5. Is there more gas left in the tank?
2. Echo Global Logistics ECHO saw first quarter revenue rise 45.3% and raised full year revenue growth projections. It’s about to report its second quarter. Will it see more of the same? Shares have fallen about 10% in the last 3 months making the shares even cheaper. It has a PEG ratio of just 0.77.
3. Ford F has soared 137% in the last year but remains cheap. This Zacks Rank #2 (Buy) has a P/S ratio of just 0.5 and a P/B ratio of 1.7. Both indicate that the company is undervalued.
4. General Motors GM is also cheap even though its shares are up big in the last year as well, gaining 136%. This Zacks Rank #1 (Strong Buy) has a forward P/E of just 9.3 and a P/S of 0.7.
5. Schneider National SNDR has actually fallen 14.4% over the last 3 months. This trucking, intermodal and logistics company is getting even cheaper as it has a forward P/E of just 12.8 and a PEG ratio of 0.9. A PEG under 1.0 usually indicates a company has both growth and value, a rare combination.
What else should you know about cheap stocks?
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
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Echo Global Logistics, Inc. (ECHO) : Free Stock Analysis Report
Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
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Zacks Investment Research