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The Zacks Analyst Blog Highlights: Pilgrim's Pride, Intel, Delta Air Lines, JetBlue Airways and Kelly Services

For Immediate Release

Chicago, IL - March 15, 2016 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Pilgrim's Pride Corporation ( PPC ), Intel Corporation ( INTC ), Delta Air Lines, Inc. ( DAL ), JetBlue Airways Corporation ( JBLU ) and Kelly Services, Inc. ( KELYA ).

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Here are highlights from Monday's Analyst Blog:

5 Value Stocks from Top Industries for Portfolio Makeover

The U.S. stock market continues to brave challenges amid global headwinds like volatile oil prices , muted growth in eurozone and emerging markets, and the uncertainties shrouding the Chinese economy.

However, last December, the Federal Reserve's announcement of the most-awaited increase in the benchmark federal funds rate in almost a decade certainly depicts how the U.S. economy has gradually gained traction since the 2008 financial crisis. In a recent speech, Fed Governor Lael Brainard acknowledged continued moderate growth in consumer spending, improving housing sector and declining unemployment.

Notably, the strong job report for February 2016 calmed fears of a new recession. The unemployment rate was 4.9% for the month, almost near the 5% level which many economists believe to indicate full employment.

Nevertheless, it remains a key area to watch over what stance the Fed takes on interest rates at its meeting this week on 15th and 16th March.

Amid such a backdrop, why not give a fresh makeover to your investment portfolio with value investing?

Value Investing

While there is a class of investors who prefer to remain invested for a longer period in order to minimize inherent risk of a stock overtime and earn higher returns, there is another group that seeks to capitalize on the undervalued stocks.

Value investing was established by Benjamin Graham who is also known as "Father of Value Investing" and has mentored many legendary value investors including Warren Buffett. The key aspect of value investing is buying a stock when its market price is considerably below its intrinsic value.

Intrinsic value can be derived through fundamental analysis, considering both the qualitative and the quantitative aspects of a business. Notably, a stock whose market price is lower than its intrinsic value is referred to as 'undervalued,' while a stock whose market value exceeds the intrinsic value is regarded as 'overvalued.'

The basic idea is to invest in undervalued stocks, as these are trading at a relative bargain to their respective intrinsic values.

Why Eye the Top Industries?

Amid the unpredictable market, it is important to consider the performance of an industry. This is because, more often than not, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board.

In fact, studies have shown that an average stock in a strong industry is likely to outperform a great stock in a poor industry.

The Right Picks

With the help of our style score system , we have zeroed-in on 5 attractive value stocks from the leading industries. Notably, our Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of 'value traps' and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) handily beat other stocks.

ll these stocks have a highly desirable Value Style Score of 'A,' lower P/E ratio along with a Zacks Rank #1 or #2 and market capitalization of at least $500 million. Moreover, these stocks are from industries carrying a Zacks Industry Rank #25 or better.

Pilgrim's Pride Corporation ( PPC ) - With a market capitalization of $6.26 billion, this Colorado-based company operates in the food-meat products space. The company is engaged in the processing, production, marketing and distribution of frozen, fresh as well as value-added chicken products.

Pilgrim's Pride continues to benefit from its profitable zero-based budgeting strategy, portfolio model, effective business internationalization process and innovative pricing, promotional & distributional policies.

Value Score: 'A'

Zacks Rank #1

Zacks Industry Rank #3

P/E (F1): 10.95% compared to industry ratio of 15.53%

Intel Corporation ( INTC ) - Based in California, this company functions in the semi-conductor industry and has a market capitalization of $150.03 billion. Intel is one of the leading producers of semiconductor components and digital platforms in the world. The company supplies microprocessors and system building blocks - which form the integral part of computers and other connected devices, servers, and networking and communications products - to computing and communications industries.

Data center is currently the most promising area, where macro factors are impacting the enterprise side (cloud remains strong). Intel's investments in the Internet of Things platform and non-volatile memory (NVM) business are paying off, with NVM in particular on the growth path.

Value Score: 'A'

Zacks Rank #1

Zacks Industry Rank #13

P/E (F1): 12.89% compared to industry ratio of 22.67%

Delta Air Lines, Inc. ( DAL ): As fuel costs account for the majority of expenses for airlines, companies in the airline space have been benefitting from the prolonged slump in oil prices. With a market capitalization of $37.13 billion, Georgia-based Delta Air Lines is a leading provider of scheduled air transportation for passengers and cargo throughout the U.S., and around the world.

The average fuel price at Delta in fourth-quarter 2015 was $1.85 per gallon, down 29% year over year. Moreover, continuous route expansion and increased value-added services are likely to drive the top line further.

Value Score: 'A'

Zacks Rank #2

Zacks Industry Rank #17

P/E (F1): 6.98% compared to industry ratio of 9.77%

JetBlue Airways Corporation ( JBLU ): With $6.47 billion of market capitalization, the New York-based company is a low-cost passenger airline that focuses on providing high-quality customer service primarily on point-to-point routes. The company transports more than 32 million travelers annually to 87 cities in the U.S., Caribbean and Latin America.

The company is set to gain from continuous route expansion, increased number of code-sharing agreements and introduction of innovative services.

Value Score: 'A'

Zacks Rank #2

Zacks Industry Rank #17

P/E (F1): 7.76% compared to industry ratio of 9.77%

Kelly Services, Inc. ( KELYA ): With a market capitalization of $653.45 million, this Michigan-based company is engaged in providing workforce solutions to various industries worldwide. Meanwhile, the company which is in the staffing industry is poised to benefit from the improvement in the employment scenario.

Value Score: 'A'

Zacks Rank #1

Zacks Industry Rank #24

P/E (F1): 10.64% compared to industry ratio of 13.06%

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PILGRIMS PRIDE (PPC): Free Stock Analysis Report

INTEL CORP (INTC): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report

KELLY SVCS A (KELYA): Free Stock Analysis Report

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


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

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