For Immediate Release
Chicago, IL - August 24 - 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/319297/5-top-classic-value-stocks )
5 Top Classic Value Stocks
Welcome to Episode #106 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.
With the major stock indexes hitting new all-time highs, there are questions about valuation again.
Are there any value stocks still left out there?
And are there any classic value stocks among them?
What Makes a Stock a "Classic Value"?
Classic value means that the company has the old-school value metrics. Those include a low P/E ratio, PEG ratio, P/B ratio and P/S ratio.
You can also add price to cash flow (P/CF) to the mix.
Why would you want to add P/CF?
Cash is hard to fake. A company either has it or it doesn't.
Many investors like to use P/CF instead of P/E or you can use both of them, as Tracey did here.
Screening for the Best Classic Value Stocks
There are a lot of components to a classic value stock screen so that means it's going to give fewer results. It's only going to be the cheapest of stocks.
But Tracey also added the Zacks Rank of #1 (Strong Buy) and #2 (Buy) to the value fundamentals in order to get rising earnings estimates.
The screen included a P/E under 15, a PEG ratio under 1, a P/B ratio under 3, a P/S ratio under 1 and a P/CF ratio under 10.
The screen returned just 13 stocks.
Here are the featured five.
5 Top Classic Value Stocks for Your Short List
1. ArcBestARCB is a logistics company with a market cap of $1.2 billion. In the second quarter it saw a record level of quarterly consolidated revenue in its history. It has a PEG ratio of 0.4 and a Price-to-Book ratio of 1.8.
2. ISGIII is a global tech research and advisory firm with a market cap of just $191 million. In the second quarter, revenue was up 4% to a record $71 million. It has a forward P/E of just 11.2 and a P/S ratio of 0.7.
3. J. JillJILL is a woman's specialty retailer with a market cap of $300 million. In the second quarter, same-store-sales, a key retail metric, was up 2.2%. Shares fell sharply on the earnings report, however. It has a forward P/E of 9.8 and a P/CF of 4.7.
4. JinkoSolarJKS is a Chinese solar company with a market cap of $500 million. Even with new policies issued by the Chinese government on May 31, it's still growing. Shares have plunged 50% year-to-date, however. Shares are dirt cheap with a forward P/E of just 5.2 and a PEG ratio of 0.5.
5. Rayonier Advanced MaterialsRYAM makes high-purity cellulose, paperboard, lumber, newsprint to high-yield pulp. It has a market cap of $1.1 billion. In the second quarter, it saw strong performance in pulp and forest products. The company has a PEG ratio of 0.5 and a P/CF of 5.4.
All of these companies are small caps which isn't surprising given the out performance of the large caps.
Value stocks are those out of favor with the Street and the small caps have been out of favor for quite some time.
What else should you know about classic value stocks?
Listen to this week's podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
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.
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 reportArcBest Corporation (ARCB): Free Stock Analysis ReportRayonier Advanced Materials Inc. (RYAM): Free Stock Analysis ReportJ.Jill, Inc. (JILL): Free Stock Analysis ReportJinkoSolar Holding Company Limited (JKS): Free Stock Analysis ReportInformation Services Group, Inc. (III): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research