- (1:00) - Finding Value In 2020: Where Should You Be Looking?
- (11:35) - Tracey’s Top Stock Picks: Single Digit P/E’s
- (21:50) - Episode Roundup: BHF, CS, HIBB, MDC, MET, PENN, SIG, TEF
Welcome to Episode #171 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.
The calendar has turned to 2020 but the 2019 stock market rally continues, with large cap growth stocks hitting new record highs nearly every day.
But what about value?
Are there even any value stocks out there in this over-bought market?
Screening for Classic Value
Classic value means companies with cheap fundamentals including low P/E, P/B, P/S, P/CF and PEG ratios.
It’s not easy being cheap in all FIVE of those fundamentals. This screen is going to be narrow as a result.
In addition, you can add on the Zacks Value Style Score as well as the Zacks Ranks of #1 (Strong Buy) and #2 (Buy).
The Rank should give you stocks with rising earnings estimates (hopefully).
Given all of the criteria in this screen, it’s not surprising that only 8 companies passed the test.
These 8 companies are the best of the classic value stocks, based solely on the fundamentals, Style Score and Rank, that are out there.
All investors should do further research to find out why these companies have such low P/Es and why Wall Street is ignoring them.
Here are five of the companies.
5 Classic Value Stocks
1. Brighthouse Financial BHF has a forward P/E of just 3.8. It has a PEG ratio of just 0.35 and 1 analyst has raised full year estimates in the last week.
2. Credit Suisse CS has a forward P/E of just 8.9 and a PEG of 0.5. One analyst has raised his estimate for 2020 in the last week.
3. MetLife MET is also cheap, with a forward P/E of just 8.4. Investors get a dividend, currently yielding 3.4%.
4. Penn National Gaming PENN operates 39 gaming and racing facilities. It’s trading with a forward P/E of just 12.3 and a PEG ratio of just 0.4.
5. Signet SIG is really cheap, with a forward P/E of 5.7, but many retailers have been struggling. One estimate has been raised for next fiscal year in the last week.
What else should you know about the hot market and buying classic value stocks?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Penn National Gaming, Inc. (PENN) : Free Stock Analysis Report
Credit Suisse Group (CS) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
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Zacks Investment Research