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Zacks Value Trader Highlights: Echo Global, G-III, Tech Data, ArcBest And Unum

Published 12/20/2018, 10:22 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – December 21, 2018 – Zacks Value Trader 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/343992/5-top-classic-value-stocks-for-2019)

5 Top Classic Value Stocks for 2019

Welcome to Episode #122 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 stock market sell off accelerating, stock deals are emerging from the wreckage.

This is the chance that value investors have been looking for. Valuations are actually coming down and that means it’s a great time to get stocks on the cheap.

Tracey tried to screen for just cheap stocks, using the P/S ratio, PEG and the Zacks Rank but got a lot of stock names that she has seen before.

For 2019, she wanted some fresh picks which also had stellar value fundamentals.

Therefore, she turned to her Classic Value screen to find the stocks.

Screening for Classic Value

Classic value is what you would think it is. It combines all of the great value indicators in one place and also throws in the Zacks Rank of #1 (Strong Buy) or #2 (Buy) for extra firepower.

Those value components are a P/E under 15, a PEG under 1, a P/S ratio under 1 and a P/B ratio under 3.0.

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This screen is still narrow but it returned 27 stocks.

5 Classic Value Stocks for 2019

1. Echo Global Logistics, Inc. (NASDAQ:ECHO) is a supply chain management company with a PEG of just 0.7 and a P/S ratio of only 0.3. Shares are down 27% in 2018.

2. G-III Apparel (NASDAQ:GIII) is a large retailer with both brick and mortar and wholesale operations through brands such as Wilson’s Leather, DKNY, Donna Karan and others. Shares are down 27% year-to-date but it’s also dirt cheap with a P/B of just 1.2 and a P/S ratio of 0.5.

3. Tech Data (NASDAQ:TECD) distributes technology worldwide. Shares are down 17% year-to-date but it’s still extremely cheap. It has a forward P/E of just 7.5 and a P/B ratio of 1.1.

4. Unum Group (NYSE:UNM) provides insurance, especially disability plans, and financial services in the United States and the United Kingdom. Shares have plunged 47% this year and are now dirt cheap. It is trading with a forward P/E of just 5.6. Shareholders also get a dividend, currently yielding 3.6%.

5. ArcBest Corp. (NASDAQ:ARCB) is a freight and logistics company based in Arkansas. It has a long history, going all the way back to 1923. Shares are down just 5.3% year-to-date but there’s still a lot of value as it has a P/E of just 9.3 and a P/S ratio of 0.3.

The theme to the beginning of 2019 is sure to be the sheer number of value stocks on the market.

What else do you need to know about finding classic value stocks in 2019?

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Tune into this week’s podcast to find out.

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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.

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Echo Global Logistics, Inc. (ECHO): Free Stock Analysis Report

ArcBest Corporation (ARCB): Free Stock Analysis Report

Unum Group (UNM): Free Stock Analysis Report

Tech Data Corporation (TECD): Free Stock Analysis Report

G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report

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