In This Article:
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(0:30) - Getting Back To The Basics With Value Stock Screening
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(6:00) - Tracey’s Top Stock Picks To Keep On Your Radar Right Now
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(26:40) - Episode Roundup: CNC, CPA, KB
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Podcast@Zacks.com
Welcome to Episode #405 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
This week, she screened for value stocks using the free basic screens on Zacks.com
Screening for Basic Value Stocks
Zacks.com has numerous predefined screens that are available for anyone to use.
Tracey screened with one that looks for value stocks. It was titled “Classic Value with Growth.”
The criteria includes a forward price-to-earnings (P/E) ratio less than 20, a PEG ratio under 1.0, a price-to-sales ratio under 1.5, a price-to-book ratio under 2.0, 5 years of historical EPS growth and this year’s estimated growth.
Throwing all that into one bucket and it produced 38 stocks.
Adding the Top Ranks to the Screen
However, Tracey wanted rising earnings estimates during this time of so many companies cutting earnings or withdrawing guidance due to the tariffs. Why not get the best?
She added the Zacks Rank of #1 (Strong Buy) and #2 (Buy).
This screen produced 11 stocks. Many were foreign companies.
3 Classic Value Stocks with Growth and the Top Ranks
1. Centene Corp. (CNC)
Centene is a large cap healthcare company, which includes health insurance. Centene is cheap, with a forward P/E of just 8.1. It has a PEG ratio of 0.7. A PEG under 1.0 indicates a company has both value and growth.
Shares of Centene are down 0.9% year-to-date but also haven’t really gone anywhere for the last 5 years. Shares are down 12.6% over the 5-year period.
Centene is a Zacks #2 (Buy) stock.
Should value investors put Centene on their short list?
2. Copa Holdings, S.A. (CPA)
Copa Holdings is the holding company for Copa and Wingo airlines. Based in Panama, it operates 112 aircraft.
Shares of Copa are up big from the recent Liberation Day lows. Year-to-date, it has jumped 16.5%. But Copa is still dirt cheap. It has a forward P/E of just 6.2. A P/E under 10 usually indicates a company is really cheap.
It also has a PEG ratio of just 0.7. Additionally, Copa pays a dividend, currently yielding 6.4%.
It is a Zacks Rank #1 (Strong Buy) stock.
Should value investors put Copa on their short list?
3. KB Financial Group inc. (KB)
KB Financial Group is a South Korean company specializing in banking and financial solutions. It is a large cap company with a market cap of $26 billion.
Shares of KB Financial have rebounded off the Liberation Day lows and are up 26% in the last month. KB Financial Group is still dirt cheap with a forward P/E of 6.2 and a PEG ratio of just 0.5.