Welcome to Episode #25 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
She gets asked all the time about "cheap" stocks, i.e. those under, say, $10 a share. But "cheap" doesn't mean they're a "value." You can have a value stock that has a P/E of 10 trading at $100 a share. Conversely, a $10 stock could have a P/E of 50, which would make it expensive.
But what if there were true value stocks that were also cheap?
What if you could buy a stock under $20 a share and also get solid value fundamentals like a low P/E and a great Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold)?
That could be the best of all worlds.
Tracey ran some screens with the criteria to see if it was possible. She had problems finding stocks under $10 that fit.
But by widening the parameters, she was able to find 5 quality stocks trading under $15 a share with good value fundamentals.
5 Value Stocks Under $15
1. Ryerson Holding RYI is a small cap metal processor. It has a forward P/E of 10.4.
2. Huntington Bancshares HBAN is the 32 nd largest bank in the United States with $74 billion in assets. Earnings are expected to grow 10% in 2017. It has a forward P/E of 13.9.
3. Ecopetrol EC is an integrated oil company in Colombia with a $19 billion market cap. It's all about the price of oil with this one. Earnings are expected to be $0.38 in 2016 and jump to $0.97 in 2017. Its forward P/E is 9.5.
4. CECO Environmental CECE is in the air pollution control and filtration markets. It's a small cap with a market cap of just $490 million. It has a forward P/E of 14.9 and EPS is expected to grow 9.7% in 2017.
5. Fogo de Chao FOGO is a Brazilian steakhouse with 44 locations. It sports a forward P/E of 14.9. Earnings are expected to rise 8% in 2017.
There's real variety on this list. It includes small and big caps and some foreign while others are domestic.
But remember, it's easy to screen for these simple criteria like stock price or even P/E but that's not giving you the full story about the company. It's just scratching the surface and giving you some investing ideas.
Long term investors should remember that they are owners of the company. Do your research.
What else does Tracey think about these cheap value stocks? Find out in this week's podcast.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
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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 Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report Ecopetrol S.A. (EC): Free Stock Analysis Report CECO Environmental Corp. (CECE): Free Stock Analysis Report Ryerson Holding Corporation (RYI): Free Stock Analysis Report Fogo de Chao, Inc. (FOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research