- (0:30) - Value Stocks On The Rise: Stocks Trading Close To 52 Week Highs
- (5:45) - Tracey’s Top Stock Picks
- (16:30) - Episode Roundup: M, DDS, KEY, CMA, GS, UBS, F, FANG, EOG, XOM
- Podcast@Zacks.com
Welcome to Episode #257 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.
In 2021, it’s not all bad news for value investors. Momentum isn’t found just in growth stocks.
Many value stocks are also trading at new 52-week highs.
What are the hot, but cheap, stocks right now?
Screening for Value Stocks with Momentum
It’s an easy screen to find value stocks with momentum. For value, look for forward P/Es under 15 and a PEG ratio under 1.0. A PEG under 1.0 indicates both value and growth.
To find stocks with momentum, look for those trading within 5% of their 52-week highs.
This screen returns 45 stocks.
They were mostly in the hot value industries: oil, banks, autos and retail.
5 Red-Hot Value Stocks to Buy Now
1. Macy’s M is dirt cheap, with a forward P/E of just 7.6 even while shares are up 171% year-to-date. How could that be? Because the earnings are expected to soar 269% this fiscal year as the best holiday season ever looms. Macy’s is a Zacks Rank #1 (Strong Buy).
2. KeyCorp (NYSE:KEY) KEY is a $22 billion market cap regional bank. Year-to-date the shares are up 44.7% but are still cheap, with a PEG ratio of just 0.6. It also pays a dividend, yielding 3.1%.
3. Comerica Inc. CMA, a Texas-based regional bank, has soared 58.8% year-to-date. But it, too, is cheap with a forward P/E of just 10.5. It’s dividend is also yielding 3.1%.
4. Ford Motor Company (NYSE:F) F is back in the spotlight thanks to the push to build electric vehicles. Shares are up 108% this year but are still dirt cheap, with a forward P/E of just 10.3.
5. Diamondback (NASDAQ:FANG) Energy FANG is a $20 billion oil and natural gas producer in the Permian Basin in Texas. Shares have soared 128.9% year-to-date and remain cheap. Diamondback has a PEG ratio of just 0.5. It’s also a Zacks Rank #1 (Strong Buy).
What else do you need to know about finding cheap hot stocks?
Tune into this week’s podcast to find out and to hear about a bunch of other hot, cheap stocks.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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
Ford Motor Company (F): Free Stock Analysis Report
Macy's, Inc. (NYSE:M): Free Stock Analysis Report
Comerica Incorporated (NYSE:CMA): Free Stock Analysis Report
KeyCorp (KEY): Free Stock Analysis Report
Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research