In the weeks following the United Kingdom’s decision to leave the European Union, investors continue to weigh its effects on global markets. In times of uncertainty, many investors looks to solid value, dividend-paying stocks for a source of income and for some protection to downside risk. But what’s the easiest way to find these stocks?
Many investors know that screening is a very powerful way to find the best stocks, but creating your own screens can be difficult and time consuming. However, with Zacks Premium Screens, finding the best stocks is just a few clicks away.
To show just how easy it can be, I have used one of Zacks Premium Screens, named the “High Rank Value” screen. Though they are already implemented for you, the parameters of this screen is that the stocks must be a Zacks Rank #1 (Strong Buy) or #2 (Buy), a dividend yield greater than 2%, a PE ratio less than 15, and a price to book ratio less than 3.
Below are 3 high value stocks that also have top Zacks Ranks and solid dividend payments that were found from using the “High Rank Value” premium screen:
Gannet Co. Inc. (NYSE:GCI)
Gannet Co. Inc. operates as a multi-platform news and information company. The company’s operations comprise of USA Today, 92 daily local publications in the US and Guam, approximately 400 non-daily publications in the US, and approximately 150 local news brands online, mobile, and in print in the UK. It also provides commercial printing, marketing, and data services.
GCI is a Zacks Rank #1 (Strong Buy) stock, that operates in an industry ranked in the top 3% of all industries by Zacks. The company has an A for its Value Style Score, which is backed up by a dividend payment of 4.80%, a low PE ratio of 8.72, a price to sales ratio of .51, and an earnings yield of 11.17%. The company also has a B Growth Style Score, which can be attributed to projected sales growth of 6.13%, and a net margin of 5.10%.
American Eagle Outfitters Inc. (NYSE:AEO)
American Eagle Outfitters Inc. operates as a specialty retailer offering on-trend clothing, accessories, and personal care products under the American Eagle Outfitters and Aerie brands. The company provides denim, bottoms, and other apparel, as well as footwear and accessories for men and women; as well as intimates, apparel and personal care products for women. AEO is currently a Zacks Rank #2 (Buy) stock, and offering a strong dividend payment of 3.13%.
The company also has an A for its Value Style Score, with a low PE ratio of 12.60, a price to sales ratio of .79, and cash flow per share of 1.86. The company also has strong growth opportunities too, with current year projected sales growth of 3.32% and projected EPS growth of 16.16%, an ROE figure of 20.18%, and a net margin of 6.43%. There also has been a great deal of EPS estimate revision activity lately, with 10 analysts raising their current year EPS estimates in the last 60 days.
Cisco Systems Inc. (NASDAQ:CSCO)
Cisco Systems Inc. is a worldwide leader in networking for the internet. The company’s internet protocol-based networking solutions are the foundation of the internet and most corporate, education, and government networks around the world. Cisco is a Zacks Rank #2 (Buy), and offers a solid dividend yield of 3.67%.
The company also has a B for its Value Style Score, which can be attributed to a PE ratio of 13.30, an earnings yield figure of 7.40%, and cash flow per share of 2.49. Cisco also is projected to see EPS growth of 7.04% this year. There has also been a great deal of upward estimate revision activity lately, with 4 analysts raising their current year EPS estimates in the last 60 days.
Bottom Line
As history tends to show and many investors will agree, solid value, dividend-paying stocks tend to be a successful strategy to provide outperforming returns, while at the same time providing some downside risk in times of uncertainty, like the present global market right now.
As the three stocks above show, the capabilities of the Zacks Premium Stocks offer top stock investment options with just a few clicks. The screens are already made for investors. All you have to do is choose the screen you wish to use, whether it be for top-ranked, high-yield dividend stocks like these, or for stocks that the multitude of other screens can help investors find.
To use more than 45 predefined screens strategically created to find the best stocks — and access even more proven tools and resources — start your free 30-day trial to Zacks Premium.
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
GANNETT CO INC (GCI): Get Free Report
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
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Zacks Investment Research