- (0:30) – Value Stocks Breaking Out: Stock Screener
- (2:00) – Tracey’s Top Stock Picks
- (10:30) – Takeaways: Commodity Stocks
- (13:10) – Episode Roundup: Podcast@Zacks.com
Welcome to Episode #68 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.
Instead of hearing about all the doom and gloom in value investing, how about we take a look at value stocks that are actually breaking out?
Are there any that have momentum?
Tracey ran a screen looking for Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks along with a Zacks Style Score for Value of A. She also wanted them to be trading close to their 52-week high, so she screened for stocks trading within 10% of that level.
Surprisingly, the screen returned 35 stocks.
That’s not too shabby.
These are the five that made the grade.
5 Red Hot Value Stocks
1. CDW Corporation (CDW – Free Report) is a large cap technology solutions provider which is expected to do double digit earnings growth in 2017 and again in 2018. Shares are up 10% in 2017 but have jumped 60% in the last 2 years. Despite the surge in the shares, it’s not expensive, with a forward P/E of 17.6, which is under the average of the S&P 500.
2. Boise Cascade (BCC – Free Report) is one of the largest producers of engineered wood, and plywood, in North America. With all the natural disasters in 2017, plywood has, obviously, been in demand. Third quarter sales were up 15%. Shares are up 58% year-to-date but still have attractive valuations.
3. Ecopetrol (EC – Free Report) is Colombia’s largest oil company. With crude at 2-year highs, earnings estimates are soaring. Earnings are expected to jump 205% in 2017 and another 58% in 2018. Shares are up 31% year-to-date but still trade with a forward P/E of 15.5.
4. Huntsman Corporation (HUN – Free Report) was expected to merge with Clariant of Switzerland in a $14 billion deal but it was scuttled by an investor revolt in late October. Shares have jumped 58% year-to-date but it’s still dirt cheap, with a forward P/E of only 11.8.
5. H&E Equipment Services (HEES – Free Report) is one of the largest equipment services firms in the United States. It sells, rents and provides equipment parts. Earnings are expected to rise 53% in 2017 but fall 9.3% in 2018. Still, it pays a dividend, currently yielding 3.2% even though shares are up 41% on the year.
Is there a pattern with these stocks that are breaking out, yet are still cheap?
Tracey discusses what value investors might discover when looking at these 5 names collectively. Yes, she sees a change in what has momentum in the market.
What else should you know about value stocks that are red hot?
Listen to this week’s podcast to find out.
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