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Zacks Value Investor Highlights: Autobytel, CAI International And Fogo De Chao

Published 05/25/2017, 09:30 PM
Updated 07/09/2023, 06:31 AM
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For Immediate Release

Chicago, IL – May 26, 2017 – Zacks Value Investor 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/261792/top-value-stocks-under-20 )

Top Value Stocks Under $20

Welcome to Episode #43 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.

Everyone loves a “cheap” stock right? They get all the love.

But “cheap” doesn’t mean it’s a “value.”

Value stocks can be $100 and expensive stocks can be $5. Investors need to keep an eye on actual earnings.

But there’s just something about buying a stock under $20 that’s fun.

Tracey ran a screen to find stocks under $20 with the best fundamentals. That’s the best of both worlds. She included a Zacks Rank of #1 (Strong Buy) or #2 (Buy), which likely indicates rising earnings estimates, with P/Es under 15.

One hundred eleven stocks fit the bill including a lot of foreign companies and banks. But there were a handful of top companies among them that Tracey found intriguing.

3 Value Stocks Under $20

1. Autobytel (NASDAQ: ABTL Free Report ) is a digital media company specializing in cars. It owns websites like car.com and usedcars.com. It had a record first quarter after posting a record 2016 as advertising and click revenue soared. ABTL has a forward P/E of just 13.2 and it’s trading about $13.

2. CAI International (NYSE: CAI Free Report ) operates globally in containers, rail and logistics. While the container market is heating up in 2017, and the company expects an industrywide shortage by the end of the year, the rails business continues to be soft. As the global economy heats up, CAI is in the right kind of business. It’s cheap, with a forward P/E of 10.6 This was a little bit of a cheat, as it has just surged above $20, but it’s close enough.

3. Fogo de Chao (NASDAQ: FOGO Free Report ) is a Brazilian steakhouse with a forward P/E of 14.9. Shares have sold off in May making it an attractive entry point. In the first quarter, same-store-sales in the US, it’s largest market, were up 0.9%. It also reaffirmed guidance. Shares are trading around $14. Is this one of the cheapest restaurant stocks out there?

There are also plenty of cheap apparel retailers, many of whom have value fundamentals. However, most don’t have Zacks Ranks of #1 or #2 given the challenges in the industry.

But if you like to bottom feed and you’re not afraid of retail, listen in on the Zacks Market Edge podcast. Tracey will fill you in on the best buys, and those you should keep on your watch list, in the apparel retailers.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



Autobytel Inc. (ABTL): Free Stock Analysis Report

CAI International, Inc. (CAI): Free Stock Analysis Report

Fogo de Chao, Inc. (FOGO): Free Stock Analysis Report

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