For Immediate Release
Chicago, IL – June 14, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
(https://www.zacks.com/stock/news/429223/5-stocks-with-great-classic-value-fundamentals)
5 Stocks with Great Classic Value Fundamentals
Welcome to Episode #145 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.
This week, she’s not messing around.
What stocks are classically cheap in June of 2019?
Screening for Classic Value Stocks
Classic value fundamentals include not just the price-to-earnings ratio, but also the price-to-book and price-to-sales ratios, the PEG, and the Price to Cash Flow ratio.
Including all of the classic value fundamentals means the screen is going to be really narrow.
But in addition to all of these fundamentals, the screen also looked for Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks because those should have rising earnings estimates.
And not to be left out, the screen added the Zacks Style Score for Value of A or B, which are the top two categories.
Will ANY stocks make it through such a narrow, and tough, screen?
Surprisingly, 15 stocks were cheap via the classic value metrics, had growth and the proper Ranks and Style Scores.
5 Classic Value Stocks to Keep on Your Short List
1. AIG (NYSE:AIG) has had a big rally in 2019, as the shares are up over 34% year-to-date. That’s more than double the S&P 500 over the same period. But it’s still cheap, with a forward P/E of 10.7 and a P/S ratio of only 0.9. It also pays a dividend, currently yielding 2.7%.
2. Ethan Allen (NYSE:ETH) is in the beaten down retail group but this furniture retailer’s shares are up 20.5% on the year, beating the S&P 500, which is up 15%. With a PEG of 0.88 and a P/S ratio of just 0.7 it is both a value stock and has growth.
3. Ford (NYSE:F) is dirt cheap, with a forward P/E of just 7.2 even though the shares are up 29.4% year-to-date. It has a PEG ratio which just barely made the screen at 0.99 but that means it has both value and growth. It also pays a juicy dividend currently yielding 6.3%.
4. Greenbrier (NYSE:GBX) makes railcars. This is a cyclical industry. Year-to-date the shares have sunk 27.4%. Earnings are also expected to decline in fiscal 209 by 12.4%. But it’s cheap with a P/E of 8. It also pays a dividend, currently yielding 3.7%.
5. Zumiez (NASDAQ:ZUMZ) has surprised the naysayers who believe that all the apparel retailers are in trouble. This young adult retailer grew its first quarter comps by 3.3%, on top of a strong 8.3% in the year ago quarter. It said May comps were also coming in positive, at 2.4%. Shares have fallen 8.3% over the last 3 months on retail fears. But it has a P/E of just 11.8 and a PEG of 0.9.
What else should you know about finding classic value stocks?
Tune into this week’s podcast to find out.
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Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis Report
Ford Motor Company (F): Free Stock Analysis Report
American International Group, Inc. (AIG): Free Stock Analysis Report
Zumiez Inc. (ZUMZ): Free Stock Analysis Report
Ethan Allen Interiors Inc. (ETH): Free Stock Analysis Report
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