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Strong Buy-Rated Value Stocks For An Uncertain Market


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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 on 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) stock, a price to book ratio under 3, a price to earnings ratio under 15, and a dividend yield over 2%.

This screen's stocks are all solid investment opportunities that provide investors with a good "bang for their buck". In today's market, the average price to earnings ratio is around 20, which means these stocks are all considered cheaper to most stocks available.

Below are three of the stocks the "High Rank Value Stocks" Premium Screen produced, which all have top Zacks Ranks, PE ratios under 15, divided yields over 2%, and other attributes that make them solid choices for potential investment:

Dean Foods Company DF

The Dean Foods Co. is the nation's leading processor and distributor of fresh milk and other dairy products, and a leader in the specialty foods industry. The company produces a full line of company-branded and private label dairy products such as milk and milk-based beverages, ice cream, coffee creamers, and sour cream, among several others.

A fellow Zacks Rank #1 (Strong Buy) stock, Dean Foods also operates in a top-ranked industry, coming in the top 7% of all industries ranked by Zacks. The company also owns an A Value Style Score, in large part to a low PE ratio of 11.66, a price to sales ratio of .22, and cash flow per share of 3.20.

Dean Foods also owns an A for its Growth Style Score, which can be attributed to projected earnings growth of 24.66% this year, return on equity of 20.60%, and current cash flow growth of 93.18%. There has been a great deal of positive estimate revision activity from analysts lately too, with 5 analysts raising their estimates for the current year in the last 60 days. This has pushed the current year's estimate up to 1.53 from the previous estimate of 1.34 60 days ago.

FutureFuel Corporation FF

The FutureFuel Corp. manufacturers diversified chemical products and biobased products comprised of biofuels and biobased specialty chemical products. The company operates in two segments: Chemicals and Biofuels. FF is headquartered in Clayton, Missouri. FutureFuel Corp. is a Zacks Rank #1 (Strong Buy) stock, and the industry in which it operates is ranked in the top 40% of all industries by Zacks.

FutureFuel Corp. also holds an A for its Value Style Score, which can be attributed to a low PE ratio of 10.13, an earnings yield of 9.48%, cash flow per share of 1.29, and a dividend yield of 2.01%. The company also offers growth opportunities and holds a Growth Style Score of a B. Behind the style score are figures like projected sales growth of 12.85% for the current year, return on equity of 11.75%, a current ratio of 8.22, and a high net margin of 16.72.

Manning &Napier Inc. MN

Manning & Napier Inc. operates as an investment advisor engaged in managing corporate and union pension and annuity funds, endowment funds, foundations, profit sharing plans, and benefit sharing plans. The firm offers equity and fixed income portfolios and a range of blended asset portfolios. MN also offers investment solutions through separately managed accounts, mutual funds, and collective investment trust funds.

Manning & Napier is a Zacks Rank #1 (Strong Buy) stock and offers investors bang for their buck with its B Value Style Score. That style score can be attributed in most part to a low PE ratio of 12.10, and earnings yield of 7.82%, a low price to sales ratio of .55, and a solid dividend yield of 6.64%. The stock also holds a B for its Growth Style Score, with a sales to assets ratio of 1.33, return on equity of 10.09%, and a current ratio of 4.55.

Bottom Line

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 they have to do is choose the screen they wish to use, whether it be for High Value Zacks Rank #1 stocks like these, or for stocks that the multitude of other screens can help investors find.

Use more than 45 predefined screens strategically created to find the best stocks or create your own screens using the Zacks Rank for stocks, ETFs and mutual funds. Plus, gain access to the Zacks #1 Rank list; in-depth analysis on more than 1,000 stocks with Zacks Equity Research Reports; Focus List portfolio of 50-longer-term stocks and more. Start your 30-day free trial to Zacks Premium


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

DEAN FOODS CO (DF): Free Stock Analysis Report

FUTUREFUEL CORP (FF): Free Stock Analysis Report

MANNING&NAPIER (MN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: DF , FF , MN



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