Screening for Top Ranked Value Stocks
(1:30) - Finding Strong Value Using The Zacks Ranking System: Stock Screener Criteria
(6:10) - Tracey’s Top Stock Picks
(19:45) - Episode Roundup: BZH, MHO, TPH
Podcast@Zacks.com
Welcome to Episode #326 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 volatile economic conditions, regional bank stocks still selling off, the Fed still raising interest rates, and earnings coming in, it’s time to look for cheap stocks that have some quality.
How do you find quality?
Screening for Top Stocks
We’re going to use the Zacks Rank. Specifically, we’re going to run a screen with only the top Rank, which is a #1. The #1 Rank stocks are considered to be “strong buys.” Right now, there are only 234 stocks that are Zacks #1 (Strong Buys).
But that’s too many stocks for a screen so Tracey added the Zacks Style Score for Value of A, which is the highest score.
This screen gave her 48 stocks.
3 Top Ranked Value Stocks
1. Braemar Hotels & Resorts (BHR)
Braemar Hotels & Resorts is a REIT which owns luxury hotels and resorts. Travel has been hot in 2023 as consumers are still seeking experiences. Braemar Hotels & Resorts is seeing growth in its urban hotels this year.
However, shares of Braemar Hotels & Resorts are down 3.9% year-to-date. It’s cheap, with a forward P/E of 3.9.
Braemar Hotels & Resorts also pays a dividend, currently yielding 5.1%.
Should Braemar Hotels & Resorts be on your short list?
2. US Silica Holdings (SLCA)
US Silica Holdings produces industrial minerals and is a leading last-mile logistics provider to the oil and gas industry.
In its first quarter earnings results, US Silica Holdings said it expects to remain “effectively sold out” for sand proppant in 2023. Revenue jumped 45% in the first quarter year-over-year.
Shares of US Silica Holdings have fallen 2.6% year-to-date. They remain cheap, with a forward P/E of 6.3.
Is US Silica Holdings a good way to get oil and gas industry exposure on the cheap?
3. Xerox Holdings Corp. (XRX)
Xerox is in the scanning, printers and software businesses. In the first quarter, revenue was up 2.8% year-over-year. Xerox has vowed to return at least 50% of its free cash flow to shareholders. Currently, it’s paying a dividend yielding 6.4%.
Shares of Xerox have fallen 5.2% year-to-date. It’s cheap with a forward P/E of 10.7.
Should Xerox be on the short list for income investors looking for a cheap stock?
What Else do Value Investors Need to Know About Screening for Top Ranked Value Stocks?
Listen to 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
Xerox Holdings Corporation (XRX) : Free Stock Analysis Report
U.S. Silica Holdings, Inc. (SLCA) : Free Stock Analysis Report
BRAEMAR HOTELS & RESORTS INC. (BHR) : Free Stock Analysis Report
