Showing posts with label value stocks. Show all posts
Showing posts with label value stocks. Show all posts

Thursday, September 14, 2017

6 Nasdaq Value Stocks to Add to Your Portfolio Right Now

Image result for Sanderson Farms, Inc.

Despite hindrances in the form of the timing of U.S. interest rate hikes, concerns over President Donald Trump’s ability to enforce pro-business reforms, tensions related to North Korea and more, major indexes have achieved many records this year.
In fact, investors’ risk appetite increased on diminished anxieties around the recent hurricanes in the United States, ongoing hopes over retrospective tax reforms that are expected to be pushed through by year-end as well as an increase in 10-year Treasury note yield.
Meanwhile, on Sep 13, most major Asian indexes closed slightly lower after the release of weaker-than-expected China fixed asset investment, industrial production and retail sales data. This suggests that the Chinese economy continued to cool, which could be a setback.
Nevertheless, investors are optimistic about the monthly report on inflation and the weekly report on initial jobless claims that are slated to be released on Sep 14 and are imperative for the Federal Reserve’s meeting next week. According to a research by Macquarie, as reported on MarketWatch, “Consumer price inflation data is expected to surprise on the upside thanks to seasonally higher gasoline prices and economic activity in the aftermath of Hurricane Harvey.”
The Nasdaq Index in Focus
With so much happening around, all major indexes have been on a bull run. The Nasdaq Composite Index, along with the S&P 500 and the Dow Jones Industrial Average, carried on their trend of scaling new highs, with all three closing at record highs yet again in yesterday’s trading session.
In fact, the technology-laden Nasdaq Composite Index closed 0.1% higher at 6460.19, booking its 48th all-time high this year, notwithstanding Apple Inc.’s (AAPL - Free Report) losses.
Moreover, the index has outperformed both the other two leading indexes. Year to date, Nasdaq recorded a gain of 20%, compared to the S&P 500’s growth of 11.6% and the Dow’s growth of 12.1%.
Courtesy of positive economic data, rate hike prospects, and bullish forecasts regarding U.S. tax reforms, the index’s gains are expected to continue. Moreover, the continual rally in technology stocks is likely to take the index to new highs.
6 Great Value Stocks
Value investors seek stocks that they believe are undervalued by the market. An elongated bull market has made stocks expensive on numerous measures, allowing fewer bargains to be realized.Despite scaling such highs, we believe it is not too late to delve deeper into some fundamentally strong stocks of the index.
Nonetheless, value investors should not lose hope yet as the Zacks Stock Screener comes to their rescue. Through this, we have zeroed in on five Zacks Rank #1 (Strong Buy) or 2 (Buy) Nasdaq stocks which have a Value Score of A or B on our Style Score system.
Our research shows that stocks with a Value Style Score of A or B when combined a Zacks Rank #1 or 2 offer the best opportunities in the value investing space. You can see the complete list of today’s Zacks #1 Rank stocks here.
We have also considered the trailing twelve months (TTM) price/earnings metric (P/E), which is an important factor for value stocks. This ratio is a snapshot of a firm’s earnings strength and thus investing in low P/E stocks can prove to be a good bargain for investors.
Further, all these stocks have healthy earnings growth prospects and have witnessed their full-year EPS estimates revise upwards, reflecting ongoing analyst optimism.
Pilgrim's Pride Corporation (PPC - Free Report) is a chicken products company that offers its services in the United States, Puerto Rico and Mexico through agents and also exports to more than 90 countries worldwide. This Zacks Rank #1 company believes that strong demand for U.S. chicken in the overseas markets as well as growing sales of organic chicken products will likely boost its results in the quarters ahead.
Value Score: A
P/E Ratio (TTM): 14.6 (versus 15.4 for the industry)
Full-year EPS estimate revision (over 60 days): 18.2%
This year’s expected EPS growth rate: 37.1%

Sanderson Farms, Inc. (SAFM - Free Report) is a renowned integrated poultry processing company with a Zacks Rank of 1. It processes, markets and distributes fresh prepared and frozen chicken products across the United States. The stock has been an analyst favorite of late, given its strong fundamentals and perceivably healthy growth prospects.

Value Score: A
P/E Ratio (TTM): 12.4 (versus 15.4 for the industry)
Full-year EPS estimate revision (over 60 days): 28.6%
This year’s expected EPS growth rate: 56.1%

Atlas Air Worldwide Holdings, Inc. (AAWW - Free Report) is the parent company of Atlas Air and Polar Air Cargo, which together operate the world's largest fleet of Boeing freighter aircraft. This Zacks Rank #2 company is principally involved in the airport-to-airport air transportation of heavy freight cargo through its two operating subsidiary airlines.
Value Score: A
P/E Ratio (TTM): 14.2 (versus 18.4 for the industry)
Full-year EPS estimate revision (over 60 days): 4.4%
This year’s expected EPS growth rate: 6.2%

Insight Enterprises, Inc. (NSIT - Free Report) is a global direct marketer of brand name computers, hardware and software. The company's sales force, aggressive marketing strategies and streamlined distribution together with its advanced proprietary information system have resulted in high customer loyalty and strong, profitable growth. The stock sports a Zacks Rank #1.
Value Score: A
P/E Ratio (TTM): 13.3 (versus 14.5 for the industry)
Full-year EPS estimate revision (over 60 days): 4.9%
This year’s expected EPS growth rate: 28%

YY Inc. (YY - Free Report) is a Chinese communication social platform that engages users in online group activities through voice, text and video. Users can indulge in e-learning, music and entertainment, live game broadcasting, online games and even dating. The stock flaunts a Zacks Rank of 1.

Value Score: B
P/E Ratio (TTM): 14.8 (versus 47.3 for the industry)
Full-year EPS estimate revision (over 60 days): 19.2%
This year’s expected EPS growth rate: 44.5%

SkyWest, Inc. (SKYW - Free Report) operates as a regional airline in the United States, through its subsidiaries. Pursuant to a joint marketing and code sharing agreement with Delta Airlines and Continental Airlines, the company operates as a Delta Connection in certain SkyWest markets and as a Continental Connection in certain markets in and out of Los Angeles. It presently holds a Zacks Rank of 2.

Value Score: A
P/E Ratio (TTM): 13 (versus 13.6 for the industry)
Full-year EPS estimate revision (over 60 days): 1.9%
This year’s expected EPS growth rate: 18.6%

Monday, March 21, 2016

Time To Buy Value Stocks

Referenced Stocks: FCX;NEM;URBN;KORS


After all the fear and talk of a recession, stocks are now positive for the year, both the Dow Jones and S&P 500 went green late last week (fittingly enough on St. Patrick's Day.)
But not all stocks are positive. There's a big divergence between value stocks and growth stocks this year. Value stocks are positive for the year, while growth stocks are down. History shows us that value stocks should continue to outperform growth stocks for the next five to seven years.
This comes after value stocks have lagged growth stocks for the past nine years – and by almost ten percentage points last year.
Historically, value stocks have outperformed growth stocks for at least five years following periods when growth stocks greatly outperformed value stocks (1966–1973 and 1998–2000).
So if we believe we are entering another cycle where value stocks will outperform growth stocks, how do we find value stocks?
In general, value stocks are stocks with the lowest P/E, price to book, price to sales and price to cash flow. Other twists on value investing are simply looking at the lowest priced stocks (usually under $10) in a major index or stocks with the highest dividend yield in a major index.
All of the above are value–based metrics, and usually combining two or more of the above will give you the best edge in value investing.
For example, in the S&P 500 the four best performing stocks year–to–date are: Freeport–McMoran (FCX) (which we own in our Billionaire's Portfolio), Newmont Mining (NEM), Urban Outfitters (URBN) and Michael Kors (KORS).
All four of these stocks are up at least 40% or more in 2016. And all are value stocks. Michael Kors and Urban Outfitters are classic low P/E stocks, and Newmont Mining and Freeport–McMoran, low price to book stocks.
Another sign that value investing is coming back is that value investors are starting to outperform the market. Billionaire hedge fund manager David Einhorn was up 2% at the end of February of this year, and Warren Buffett's Berkshire Hathaway is up 8% in 2016.
You can invest in value stocks through indices and ETFs, but that will never give you the most bang for the buck. We have found the best returns come from piggybacking the world's best billionaire investors and hedge funds top value stock picks.
This year two of the best performing stocks in the S&P 500—Freeport–McMoRan and Michael Kors—happen to be owned by two of the best billionaire value investors, Carl Icahn and David Einhorn.
On that note:  This is the perfect time to join us in our Billionaire’s Portfolio.  We have a portfolio full of stocks owned and controlled by big influential investors, most of which have an explicit price target from our billionaire investor of a double or more.  You canjoin us here.

By: Billionaire's Portfolio

Friday, May 8, 2015

Incredible Value Growth Stocks with Momentum

Do you love to have your cake and eat it too? Are you always looking for the best of both worlds? Do you buy Neapolitan ice cream? Drive a retractable hard-top convertible? Well then this is the stock screen for you. 
There are people out there, like myself, who are always on the hunt for the next great momentum stock idea. They want to see a stock with relative strength to the market and to the industry with recent earnings estimate revisions to the upside.
Then you have the value-oriented investors who are keeping an eye on valuation at all times. They are looking for good earnings at a cheap price. These are the Warren Buffetts of the world, digging through balance sheets and income statements looking for deals.
Don’t forget about the growth crowd. These people are searching for the next best thing. They research companies on the bleeding edge of technology that are about to experience some incredible growth in earnings and revenues over the short and long term.
What if there was a way you could keep all three of these crowds happy? The perfect triple threat of great momentum, good value, and fantastic growth.
Well by using the new Zacks Style Scores combine with our screener you can. I searched for Zacks Rank #1 (Strong Buy) stocks that are lighting up the score board with the ultimate triple threat. These stocks also have a Zacks Style Score of “A” for Growth, Value and Momentum.
 Cascade Microtech (CSCD - Snapshot Report)
Image result for Cascade MicrotechCascade Microtech designs, develops and manufactures advanced wafer probing solutions for the electrical measurement and test of integrated circuits. Cascade's engineering probe stations and analytical probes are used in research and development to perform precise electrical measurements on increasingly complex and high speed ICs. Cascade's production probe cards reduce manufacturing costs of complex and high speed ICs by identifying defective ICs early in the process and by testing 

 
Cascade may not ring a bell with individual investors but analysts are well aware of the company. Over the last week, three analysts have increased their earnings estimates for the current year. The bullish revisions have pushed up consensus from 68 cents per share all the way to 76 cents.
Covenant Transport (CVTI - Snapshot Report)
Covenant Transport, Inc. is a truckload carrier that offers just-in-time and other premium transportation service for customers throughout the United States. The company has weathered the storm the trucking industry saw during the Great Recession and looks to be well positioned for the future.
The company has been surprising earnings to the upside recently. Over the last four quarters the company has beat by an average of 6 cents. Among the largest surprises was CVTI’s Q2 2014 report. Earnings came in at 25 cents EPS versus a Zacks Consensus Estimate of 17 cents.
 HCA Holdings (HCA - Snapshot Report)
Image result for HCA HoldingsHCA Inc. is a non-governmental hospital in the U.S. providing health care and related services. The Company operates a network of acute care hospitals, outpatient facilities, clinics and other patient care delivery settings. The Company also owns and manages freestanding surgery centers, diagnostic and imaging centers, radiation and oncology therapy centers, rehabilitation and physical therapy centers, and various other facilities.
HCA reports Q1 earnings tomorrow before the market opens. The last two quarters have seen upside surprises with last quarter’s report coming in 8 cents above expectations at $1.33. Over the last 30 days, analysts have pushed up their earnings estimates from $1.16 for the current quarter all the way to $1.34. The most recent revision saw an analyst push the envelope even further, setting an estimate at $1.35. This Zacks Most Accurate Estimate gives the stock an Earnings ESP of 0.75%.
 Conclusion
Too bad we can’t always get the triple-threat in everything in life. A car with great mileage, tons of power and great looks. A house that’s huge, in a great neighborhood and dirt cheap. Few times in life do the stars line up for us like this but using the Zacks Style Scores perhaps we’ve found a way to find stocks that look great from a Momentum, Growth, and Value standpoint.