Value investing is basically the concept of taking position in stocks that are undervalued in the market. Although the idea sounds simple enough, finding such stocks is easier said than done. For an investor interested in value investing, a sound knowledge of these stocks’ ‘intrinsic value’ is required, which can only be arrived at with the help of the right tools and metrics.
Against the current macroeconomic backdrop, with U.K. opting out of the European Union and the ripples being felt across the Atlantic, finding the right value stocks has become an even tougher job.
This is where our proven Zacks Rank comes into play. The Zacks Rank system is a timeliness indicator, meaning that value investors can use it to identify precisely when company's prospects are beginning to improve. Stocks with Rank #1 (Strong Buy) or #2 (Buy) are the ones to look out for.
Moreover, stocks rated ‘A’ by our Value Style Score System further helps separate the wheat from the chaff by identifying the stocks that are most likely to outperform based on their valuation measures. When combined with the Zacks Rank, they create a powerful combination for finding stocks that will surely add value to your portfolio, going forward.
For now, let’s focus on stocks that have weathered the recent market selloff as well as earnings recession fears, and are still hovering near their last 52-week highs. Such stocks, which also have a present ranking of #2 or better in our Zacks Rank System, are certain to see an upside in the coming days. Additionally, we narrowed our range to include only those stocks with a forward P/E of less than 14.
Based on these criteria, we have shortlisted four stocks for you to consider.
BG Staffing, Inc. BGSF is a temporary staffing company in the U.S. operating through three segments: Commercial, Multifamily and Professional. Hovering around 91.4% of its last 52-week high, the stock currently sports a Zacks Rank #1 (Strong Buy) and has a P/E of 10.
SkyWest Inc. SKYW is an airline company in the U.S. that provides passenger and air freight services. SkyWest currently has Zacks Rank #1 and a P/E of 9.7. Its shares are hovering around 90.8% of its last 52-week high.
Intrawest Resorts Holdings, Inc. SNOW is an operator of a mountain resort, adventure and real estate company in North America. It carries a Zacks Rank #1 as well and has a P/E ratio of 13.75. Currently, the stock is trading at 98.1% of its last 52-week high.
Neff Corp. NEFF is an equipment rental company in the U.S. Currently, the stock is trading at 90.9% of its last 52-week high. The company sports a Zacks Rank #1 and has a P/E of 6.9.
While we have narrowed down some attractive picks above, be sure to use our Zacks Stock Screener to identify your picks according to your specific requirements. Happy investing!
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 SKYWEST INC (SKYW): Free Stock Analysis Report INTRAWEST RESRT (SNOW): Free Stock Analysis Report BG STAFFING INC (BGSF): Free Stock Analysis Report NEFF CORP-A (NEFF): Free Stock Analysis Report To read this article on Zacks.com click here.