Kevin Matras shows you how to find cheap stocks (as in bargains). Stocks in this week’s article are The Children's Place Retail Stores, Inc. (NASDAQ: PLCE), GeoResources, Inc. (NASDAQ: GEOI), G-III Apparel Group, Ltd. (NASDAQ: GIII), Hot Topic, Inc. (NASDAQ: HOTT) and Pegasystems, Inc. (NASDAQ: PEGA). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Whether we've hit the market bottom already or not, the market is downright cheap. P/E ratios for companies in the S&P 500 are near their lowest levels in 5 years.
In fact, the median P/E ratios are currently 56.2% below their 5-Year High and 38.2% below their 5-Year Median. This coincides with the market recently hitting its lowest price levels in a little over 5 years.
Moreover, in looking at the 10 worst market declines from the 1929 crash to present, the average bear market drop has been -42.8%. With the current bear market having dropped -44.4% already, this puts us pretty much at the bottom of the average historical bear market low.
So what to do?
I'm running screens right now that are showing solid earnings forecasts, growth rates better than their 5-Year Average and P/Es trading more than 40% below their 5-Year Average.
- Est. EPS Growth Rate F(1)/F(0) greater than or equal to 5 Yr. Avg. Historical Growth Rate
- PE / 5 Yr. Avg. PE less than or equal to .60 (i.e., PEs more than 40% below their 5 Yr. avg.)
- Zacks Rank less than or equal to 2 (Only Strong Buys and Buys allowed)
Here are 5 stocks from this week’s list:
|PLCE||Children's Place Retail Stores|
|GIII||G-III Apparel Group|
|HOTT||Hot Topic, Inc.|
See what other stocks are coming thru this screen or put your own ideas to the test. You can do it. Sign up now for your free trial to the Research Wizard and start building your dream portfolio today: http://at.zacks.com/?id=111.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web, earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools are just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros http://at.zacks.com/?id=113.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.