Welcome to Episode #10 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
This week, Tracey discusses value stocks that are trading near their 52-week highs.
That seems counter intuitive right? If it’s a value stock, doesn’t that mean it’s out of favor with other investors and with Wall Street?
Tracey ran a screen looking for those stocks with the best Zacks Ranks of #1 (Strong Buy) or #2 (Buy), which means rising earnings estimates, with a Zacks Value Style Score of “A” and which were trading within 10% of their 52-week highs.
She got an eclectic group with outstanding value fundamentals and momentum, but surprisingly, also strong earnings growth, which she didn’t even screen for.
These are her top 3 stocks out of the screen.
3 Value Stocks Near Their Highs
1. Emcor (EME): Forward P/E of 18
2. Modine Manufacturing (MOD): Forward P/E of 13.6
3. Vishay Intertechnology (VSH): Forward P/E of 15.5
Analysts expect Emcor to see earnings growth of 13.9% in 2016. Modine Manufacturing, which is celebrating 100 years of business this year, is forecast to see 9.9% EPS growth this fiscal year while Vishay Intertechnology, a semiconductor maker, is expected to see 24% EPS growth this year.
Find out why Tracey believes value investors can still buy momentum stocks and more on this week’s podcast.
Still confused about what is a cheap stock and what is a value trap?
Tracey provides tips on how to spot a value trap in the podcast below.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
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MODINE MANUFACT (MOD): Free Stock Analysis Report
EMCOR GROUP INC (EME): Free Stock Analysis Report
VISHAY INTERTEC (VSH): Free Stock Analysis Report
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Zacks Investment Research