Value investors get a bad rap. Sometimes, value investing is referred to as “cigar butt” investing, in that picking up cheap, undervalued stocks is equivalent to picking up mostly smoked cigars off of the sidewalk. A good friend and colleague of mine used to call me a “dumpster diver”. Guilty.
Why value? Personally, I hate overpaying. The old Wall Street maxim “buy low, sell high” is in direct conflict with “buy high, sell higher”. Typically, value stocks are less volatile than growth stocks. That doesn’t mean they’re less risky.
I’m not going to argue the outperformance of growth versus value. Sometimes growth outperforms. Sometimes value outperforms. I’m also not going to get lost in the weeds of grandfather of value investing Benjamin Graham’s notion of intrinsic value and margin of safety.
What I will do is point out three key indicators that will get the ball rolling in evaluating a value stock.
1. Forward P/E
I’ve found that the most useful metric used in determining a stock’s value is the price-to-earnings ratio (P/E). A stock’s P/E ratio measures its price relative to the underlying business’s earnings per share (EPS). The trailing P/E measures past earnings while the forward P/E is calculated with projected earnings. The forward P/E is my go-to valuation metric. A low forward P/E is an indicator of the marketplace’s confidence in the ability of the company to deliver on the earnings forecast. The lower the number, the less confident the market is, and thus the cheaper the stock.
Best Undervalued Stocks To Invest In Right Now: Mammoth Energy Services, Inc. (TUSK)
- [By Shane Hupp]
Shares of Mammoth Energy Services (NASDAQ:TUSK) hit a new 52-week high and low on Wednesday . The stock traded as low as $35.94 and last traded at $34.62, with a volume of 20978 shares trading hands. The stock had previously closed at $34.58.
Best Undervalued Stocks To Invest In Right Now: Corning Incorporated(GLW)
- [By Anders Bylund]
Both Corning (NYSE:GLW) and Universal Display (NASDAQ:OLED) are essential ingredients in today’s best smartphone displays, among many other things. But the two companies approach their shared markets from very different angles, and their stocks fit wildly different investor profiles.
- [By Steve Symington]
Corning Incorporated(NYSE:GLW)released solid first-quarter 2018 results on Tuesday morning. The glass technologist met or exceeded expectations in each of its five business segments, and it clarified its growth targets both for the coming year and longer term.
- [By Steve Symington, Maxx Chatsko, and Brian Feroldi]
To that end, we asked three top Motley Fool contributors to each pick a stock they think you would be wise to purchase and hold for the next 50 years. Read on to see why they like Corning (NYSE:GLW), Accenture (NYSE:ACN), and A.O. Smith (NYSE:AOS).
- [By Ethan Ryder]
Media headlines about Corning (NYSE:GLW) have trended somewhat positive this week, Accern Sentiment reports. Accern scores the sentiment of news coverage by analyzing more than 20 million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to one, with scores nearest to one being the most favorable. Corning earned a daily sentiment score of 0.18 on Accern’s scale. Accern also assigned news coverage about the electronics maker an impact score of 46.8078554040753 out of 100, indicating that recent news coverage is somewhat unlikely to have an impact on the company’s share price in the near future.
- [By ]
Companies at the top of the backbone buildout food chain included Cisco Systems (Nasdaq: CSCO), the scandalous and now-defunct Worldcom, Nokia (NYSE: NOK), Ericsson (Nasdaq: ERIC), and old-tech-turned-new-tech Corning (NYSE: GLW). I’ve owned, traded, and written about Corning in the past. It’s time to have another look.
Best Undervalued Stocks To Invest In Right Now: OCI Partners LP(OCIP)
- [By Shane Hupp]
Shares of OCI Partners (NYSE:OCIP) hit a new 52-week high and low during mid-day trading on Wednesday . The stock traded as low as $10.00 and last traded at $9.85, with a volume of 0 shares traded.
Best Undervalued Stocks To Invest In Right Now: CIRCOR International, Inc.(CIR)
- [By Shane Hupp]
Here are some of the media headlines that may have effected Accern Sentiment Analysis’s rankings:
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CIRCOR International, Inc. Forecasted to Earn Q2 2018 Earnings of $0.50 Per Share (CIR) (americanbankingnews.com) CIRCOR Mexico Earns API Certifications for Quality Management (finance.yahoo.com) SunTrust Banks Research Analysts Boost Earnings Estimates for CIRCOR International, Inc. (CIR) (americanbankingnews.com) CIRCOR International (CIR) Lowered to Strong Sell at ValuEngine (americanbankingnews.com) CIRCOR International (CIR) Rating Lowered to Hold at Zacks Investment Research (americanbankingnews.com)
A number of research firms have issued reports on CIR. ValuEngine downgraded CIRCOR International from a “sell” rating to a “strong sell” rating in a report on Wednesday, May 2nd. Zacks Investment Research upgraded CIRCOR International from a “sell” rating to a “buy” rating and set a $47.00 price target for the company in a report on Tuesday, May 1st. SunTrust Banks restated a “buy” rating and set a $56.00 price target on shares of CIRCOR International in a report on Friday, March 2nd. Finally, Stifel Nicolaus restated a “buy” rating and set a $54.00 price target (down from $61.00) on shares of CIRCOR International in a report on Thursday, March 1st. Three analysts have rated the stock with a sell rating, one has given a hold rating and four have given a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $57.50.