5 Value Stock Buying Opportunities
(0:45) - Finding Value Amid A Growth Market: Screener Criteria
(5:15) - Tracey’s Top Stock Picks For Your Watchlist
(19:00) - Episode Roundup: SCS, MTW, AEO, GBX, HMC
Podcast@Zacks.com
Welcome to Episode #357 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 growth stocks hitting new highs, are there any quality cheap value stocks?
You know there are. But how does an investor find them?
Use the Zacks Rank to Find Hidden Gems
If you just screen for cheap stocks, you will find dozens of companies. But finding the hidden gems, those that are growing their earnings, for example, takes another step.
Screen for stocks with the top Zacks Rank of #1 (Strong Buy). There are only about 240 companies with this highest Zacks Rank on any given day. These are the companies where analysts are revising the earnings estimates higher.
Screening for Zacks Strong Buy stocks with value criteria, like P/Es under 20 and P/S ratios under 1.0, produced a list of 36 companies.
5 Value Stock Buying Opportunities
1. Steelcase Inc. (SCS)
Steelcase manufactures furnishings and solutions for work. It is a small cap company with a market cap of $1.5 billion.
Shares of Steelcase are up 65% over the last year but it remains cheap. Steelcase has a P/S ratio of just 0.5. A P/S ratio under 1.0 usually indicates a company has value. It also pays a dividend, yielding 3.1%.
Should Steelcase be on your value stock short list?
2. The Manitowoc Co. Inc. (MTW)
The Manitowoc Company was founded in 1902 and provides engineered lift solutions including cranes. It is a small cap company with a market cap of just $581 million.
Shares of The Manitowoc Company are up 17.5% over the last year. It is cheap with a forward P/E of 10.5. The Manitowoc Company does not pay a dividend.
Are small cap companies like The Manitowoc Company the place to find hidden gems?
3. American Eagle Outfitters, Inc. (AEO)
American Eagle Outfitters is a mid-cap specialty retailer with the American Eagle and Aerie brands. It sells in 80 countries.
Shares of American Eagle Outfitters are up 22.8% over the last year but it remains cheap with a forward P/E of 14.4.
American Eagle Outfitters pays a dividend, which it recently raised 25%. It is currently yielding 2.5%.
Should a retailer like American Eagle Outfitters be on your value stock short list?
4. The Greenbrier Companies, Inc. (GBX)
The Greenbrier Companies is a manufacturer of railroad freight car equipment in North America and Europe. It is a small cap company with a market cap of just $1.4 billion.
Shares of Greenbrier are up 45.6% over the last year but it remains cheap with a P/S ratio of only 0.4. Greenbrier pays a dividend, currently yielding 2.6%.
Should a transportation company like Greenbrier be on your value stock short list?
5. Honda Motor Inc. (HMC)
Honda Motor is the only large cap company on this list, with a market cap of $55.5 billion. Shares of the auto manufacturer were up 37% over the last year.
Yet Honda Motor remains dirt cheap with a forward P/E of just 8. It is also shareholder friendly with a dividend that is yielding 3.1%.
Should a cheap automaker like Honda Motor be on your value stock short list?
What Else Do You Need to Know About Cheap #1 Zacks Ranked 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
The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Steelcase Inc. (SCS) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
