Screening for Stocks on Sale
(0:45) - Where Should Value Investors Be Looking To Buy Heading Into 2024?
(5:00) - Screening For Top Value Stocks: Stock Screen Criteria
(9:15) - Tracey’s Top Stock Picks
(19:55) - Episode Roundup: URI, AEO, CMTL, DTC, EAT, OSK
Podcast@Zacks.com
Welcome to Episode #353 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 end of the year fast approaching, it’s time for value investors to reflect back on the year. It was a volatile year for value stocks as energy, the best performing sector in 2021 and 2022, reversed course in 2023. Additionally, the banking industry had a crisis in the spring and those stocks struggled all year.
However, there were industries such as infrastructure and the homebuilders which had fantastic years.
Where are the stocks that are on sale to end the year?
A Simple Value Stock Screen
Screening for value stocks can be easy. Tracey looked for companies with a price-to-sales ratio under 1.0, which indicates value, and a PEG ratio under 1.0. A PEG ratio under 1.0 usually means a company has both value and growth, a rare combination.
She also added the Zacks Ranks of #1 (Strong Buy) and #2 (Buy) in order to get earnings estimates that were being revised higher heading into 2024.
Running this simple screen returned 18 stocks.
5 Stocks on Sale in 2023
1. American Eagle Outfitters, Inc. (AEO)
American Eagle Outfitters is a specialty retailer in apparel and accessories. Even though shares of American Eagle are up 46% year-to-date, it’s still cheap.
American Eagle Outfitters has a P/S ratio of just 0.8. It also pays a dividend, yielding 1.9%.
Should American Eagle Outfitters, a Zacks Rank #2 (Buy), be on your value stock short list?
2. Comtech Telecommunications, Inc. (CMTL)
Comtech Telecommunications is a global technology company providing terrestrial and wireless network solutions, next generation 9-11 emergency services, satellite and space communications technologies, and cloud native capabilities to commercial and government customers.
Shares of Comtech have fallen 39% year-to-date. It’s dirt cheap, with a P/S ratio of 0.4. Comtech pays a dividend, currently yielding 1.3%.
Should Comtech be on your short list?
3. Solo Brands, Inc. (DTC)
Solo Brands sells outdoor goods including Solo Stove, paddleboards, fire pits, and swim trunks, among other things.
Shares are up in 2023, rising 39% year-to-date. But Solo Brans is still cheap, with a PEG ratio of 0.4.
Solo Brands is a Zacks Rank #2 (Buy). Should it be on your short list?
4. Brinker International, Inc. (EAT)
Brinker International owns Chili’s and Maggiano’s Little Italy restaurants. Shares of Brinker are up 28% year-to-date.
But it, too, is still on sale, with a PEG ratio of 0.7. Brinker is a Zacks Rank #1 (Strong Buy).
Should Brinker be on your short list?
5. Oshkosh Corp. (OSK)
Oshkosh makes specialty trucks and access equipment. Shares of Oshkosh have gained 15.4% year-to-date.
It remains cheap, with a PEG of just 0.2. Oshkosh pays a dividend, yielding 1.6%.
Should Oshkosh be on your value short list for 2024?
What Else Do You Need to Know About Stocks on Sale?
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
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
Solo Brands, Inc. (DTC) : Free Stock Analysis Report
