Value Leaders Rankings for October 30, 2013 Value Leaders is Briefing.com's proprietary system designed for value investors who want to avoid "value traps." Our weekly rankings are derived from a proprietary quantitative system that combines multiple value and yield factors with strong 6-month Relative Strength. There are no growth, profitability, or market cap requirements.
As an overview, traditional valuation-based investing strategies generally incorporate just fundamental metrics: low absolute or relative P/E ratios, high dividend yields, etc. These strategies can accurately isolate those stocks that are "cheap" according to the metric in question, but they do not take into account perhaps the most important factor for real-world value investing: do institutions see value in these stocks, and are they willing to accumulate them? The Value Leaders system is designed to isolate inexpensive stocks undergoing accumulation -- and thus avoid value traps -- by combining traditional fundamental valuation metrics with one technical metric that suggests strong institutional money flows: 6-month Relative Strength.
In practice, the types of names you'll typically see on our value rankings are turnaround stories that market participants are betting will succeed, cyclical companies near the trough in their cycle, and/or companies that are about to benefit from more favorable commodity prices (to name a few scenarios). Moreover, the companies on our list will feature managements that are decidedly shareholder-friendly, as evidenced by attractive dividend payouts and/or active share buyback programs.
Value Leaders content can be searched for, and have alerts generated by, the "VALUE" ticker. New to the service and have a specific question regarding Value Leaders? Please write to us at at strategy@briefing.com.
- Additions: APOL, BA, BTH, CMLS, DLX, KSS, LLL, QLGC, RTN
- Deletions: AGCO, AVT, DAN, FLEX, LXK, MX, PSX, VCI, XRX
The following table contains a list of stocks that we believe should be particularly attractive to value and yield investors who want to avoid "value traps." Value Leaders components are derived from a quantitative screen and ranking system that is designed to uncover companies that possess a combination of low valuations across a variety of metrics, healthy 6-month Relative Strength, and shareholder-friendly managements that pay dividends and/or have active share buybacks in place. There are no growth or market cap criteria applied to this list.
If you would like to copy and paste the Value Leaders components into your chart watchlist or spreadsheet, click here to pull up an unformatted ticker list.
Value Leaders: October 30, 2013 |
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Mkt Cap |
RS |
Value |
EV/ |
EV/ |
FCF |
Buyback |
Div |
Cash/ |
Rank |
Name |
Ticker |
Price |
Sector |
(mln) |
Rank |
Rank |
EBITDA |
Sales |
Yield |
Yield |
Yield |
Share |
1 |
Apollo Group |
APOL |
$28.25 |
Consumer Services |
$3,191 |
97 |
96 |
2.8 |
0.6 |
17.0% |
-0.1% |
0.0% |
$15.71 |
2 |
Southwest Airlines |
LUV |
$17.16 |
Transportation |
$12,119 |
88 |
98 |
6.7 |
0.7 |
7.5% |
4.8% |
0.9% |
$4.68 |
3 |
Oshkosh |
OSK |
$53.32 |
Producer Manufacturing |
$4,638 |
88 |
97 |
7.5 | 0.6 |
7.6% | 3.5% |
0.0% |
$6.64 |
4 |
Best Buy |
BBY |
$42.92 |
Retail Trade |
$14,658 |
94 |
95 |
5.5 |
0.3 |
4.9% |
-0.7% |
1.6% |
$5.55 |
5 |
R.R. Donnelley |
RRD |
$18.28 |
Commercial Services |
$3,322 |
84 |
98 |
5.2 |
0.6 |
5.6% |
-0.9% |
5.7% |
N/A |
6 |
Northrop Grumman |
NOC |
$108.31 |
Electronic Technology |
$24,044 |
86 |
97 |
6.8 |
1.0 |
5.9% |
3.5% |
2.3% |
$21.26 |
7 |
TIM Participacoes |
TSU |
$26.29 |
Communications |
$12,712 |
91 |
95 |
5.5 | 1.4 |
8.1% | 0.0% |
2.5% |
$2.49 |
8 |
Safeway |
SWY |
$35.47 |
Retail Trade |
$8,754 |
94 |
94 |
7.3 |
0.3 |
4.8% |
-0.8% |
2.3% |
$2.01 |
9 |
Domtar |
UFS |
$84.35 |
Process Industries |
$2,704 |
78 |
99 |
5.4 | 0.7 |
6.0% | 5.1% |
2.6% |
$5.82 |
10 |
Exelis |
XLS |
$16.63 |
Electronic Technology |
$3,132 |
80 |
98 |
5.2 |
0.7 |
10.7% |
-0.2% |
2.5% |
$1.36 |
11 |
McKesson |
MCK |
$155.87 |
Distribution Services |
$35,805 |
92 |
94 |
11.1 |
0.3 |
6.2% |
2.6% |
0.6% |
$12.70 |
12 |
Lear |
LEA |
$76.96 |
Producer Manufacturing |
$6,210 |
78 |
98 |
5.8 |
0.4 |
3.9% |
14.9% |
0.9% |
$10.81 |
13 |
GameStop |
GME |
$55.45 |
Retail Trade |
$6,482 |
89 |
94 |
8.3 | 0.7 |
4.3% | 2.0% |
2.0% |
$1.67 |
14 |
Cirrus Logic |
CRUS |
$24.42 |
Electronic Technology |
$1,550 |
82 |
96 |
5.4 |
1.5 |
12.6% |
2.6% |
0.0% |
$4.06 |
15 |
Alaska Air |
ALK |
$70.55 |
Transportation |
$4,914 |
81 |
96 |
5.0 |
0.9 |
8.4% |
0.6% |
1.1% |
$20.44 |
16 |
Blyth |
BTH |
$14.47 |
Consumer Non-Durables |
$232 |
67 |
100 |
4.8 |
0.3 |
7.2% |
6.5% |
1.4% |
$10.75 |
17 |
Outerwall |
OUTR |
$66.54 |
Consumer Services |
$1,844 |
73 |
98 |
5.1 | 1.0 |
6.2% | 6.6% |
0.0% |
$7.68 |
18 |
Telephone & Data Sys |
TDS |
$30.99 |
Communications |
$3,134 |
81 |
95 |
4.2 |
0.8 |
4.6% |
0.1% |
1.6% |
$12.46 |
19 |
Delta Air Lines |
DAL |
$26.35 |
Transportation |
$22,544 |
92 |
91 |
6.4 | 0.8 |
5.7% | -0.4% |
0.9% |
$4.87 |
20 |
Western Digital |
WDC |
$72.74 |
Electronic Technology |
$17,190 |
72 |
97 |
4.5 |
1.0 |
13.5% |
0.4% |
1.4% |
$20.12 |
21 |
Men's Wearhouse |
MW |
$44.41 |
Retail Trade |
$2,123 |
81 |
94 |
6.8 |
0.8 |
3.7% |
1.9% |
1.6% |
$0.65 |
22 |
Alliant Techsystems |
ATK |
$110.27 |
Electronic Technology |
$3,531 |
87 |
92 |
8.2 |
1.1 |
6.4% |
1.7% |
0.9% |
$3.09 |
23 |
Arkansas Best |
ABFS |
$27.60 |
Transportation |
$710 |
90 |
91 |
9.6 | 0.3 |
9.1% | -0.3% |
0.4% |
$4.68 |
24 |
Valero Energy |
VLO |
$40.21 |
Energy Minerals |
$21,800 |
62 |
100 |
3.8 |
0.2 |
7.4% |
2.2% |
2.2% |
$3.50 |
25 |
Unisys |
UIS |
$25.92 |
Technology Services |
$1,131 |
65 |
99 |
2.1 |
0.2 |
14.7% |
0.5% |
0.0% |
$12.69 |
26 |
Harris |
HRS |
$62.76 |
Electronic Technology |
$6,674 |
79 |
94 |
7.6 |
1.6 |
6.1% |
3.8% |
2.7% |
$3.14 |
27 |
Kulicke & Soffa |
KLIC |
$13.66 |
Electronic Technology |
$1,028 |
82 |
93 |
4.3 | 0.8 |
23.0% | -0.5% |
0.0% |
$6.65 |
28 |
ITT Educational |
ESI |
$41.92 |
Consumer Services |
$980 |
99 |
87 |
4.5 |
0.7 |
6.9% |
-1.4% |
0.0% |
$7.16 |
29 |
Fluor |
FLR |
$76.88 |
Industrial Services |
$12,534 |
82 |
92 |
10.4 | 0.4 |
3.9% | 2.6% |
0.8% |
$14.00 |
30 |
Seagate Technology |
STX |
$48.25 |
Electronic Technology |
$17,322 |
69 |
96 |
5.9 |
1.2 |
9.9% |
-0.3% |
3.2% |
$6.85 |
31 |
Cumulus Media |
CMLS |
$6.09 |
Consumer Services |
$1,119 |
96 |
87 |
3.1 |
1.0 |
14.1% |
-1.8% |
0.0% |
N/A |
32 |
CF Industries |
CF |
$216.22 |
Process Industries |
$12,386 |
68 |
96 |
4.5 |
2.3 |
7.4% |
7.5% |
1.8% |
$33.75 |
33 |
URS Corp |
URS |
$55.20 |
Industrial Services |
$4,134 |
68 |
96 |
7.3 | 0.5 |
5.3% | 0.9% |
1.5% |
$3.37 |
34 |
Pitney Bowes |
PBI |
$20.77 |
Producer Manufacturing |
$4,192 |
92 |
88 |
7.5 |
1.6 |
3.7% |
-0.5% |
3.6% |
N/A |
35 |
Western Refining |
WNR |
$32.60 |
Energy Minerals |
$2,621 |
55 |
100 |
2.7 |
0.3 |
11.8% |
7.7% |
2.7% |
$3.81 |
36 |
Arrow Electronics |
ARW |
$48.52 |
Distribution Services |
$4,861 |
64 |
97 |
7.8 |
0.3 |
6.1% |
3.1% |
0.0% |
$3.33 |
37 |
Magna |
MGA |
$84.56 |
Producer Manufacturing |
$19,733 |
70 |
95 |
7.1 | 0.6 |
4.8% | 0.6% |
1.5% |
$5.48 |
38 |
Visteon |
VC |
$76.89 |
Producer Manufacturing |
$3,848 |
70 |
95 |
7.8 |
0.6 |
3.4% |
5.1% |
0.0% |
$19.96 |
39 |
Brocade Comms |
BRCD |
$8.00 |
Electronic Technology |
$3,538 |
82 |
91 |
6.7 | 1.5 |
12.9% | 1.2% |
0.0% |
$1.71 |
40 |
Cardinal Health |
CAH |
$56.15 |
Distribution Services |
$19,111 |
69 |
95 |
8.4 |
0.2 |
5.6% |
-0.2% |
2.2% |
$5.58 |
41 |
Gannett |
GCI |
$27.73 |
Consumer Services |
$6,354 |
72 |
94 |
6.7 |
1.4 |
5.0% |
1.5% |
2.9% |
$3.46 |
42 |
QLogic |
QLGC |
$12.26 |
Electronic Technology |
$1,075 |
78 |
92 |
8.4 |
1.4 |
6.1% |
3.5% |
0.0% |
$4.94 |
43 |
Herbalife |
HLF |
$67.93 |
Distribution Services |
$6,879 |
84 |
90 |
9.0 | 1.6 |
5.2% | 3.9% |
1.8% |
$8.28 |
44 |
Raytheon |
RTN |
$81.87 |
Electronic Technology |
$26,155 |
74 |
93 |
7.9 |
1.1 |
4.7% |
1.5% |
2.7% |
$12.05 |
45 |
Kohl's |
KSS |
$57.04 |
Retail Trade |
$12,388 |
64 |
96 |
6.0 |
0.8 |
3.1% |
3.1% |
2.5% |
$2.67 |
46 |
Skullcandy |
SKUL |
$6.33 |
Consumer Durables |
$176 |
69 |
94 |
5.3 |
0.6 |
17.2% |
-0.5% |
0.0% |
$1.07 |
47 |
Boeing |
BA |
$129.66 |
Electronic Technology |
$97,433 |
87 |
88 |
10.9 | 1.1 |
8.3% | 0.5% |
1.5% |
$20.74 |
48 |
L-3 Communications |
LLL |
$97.98 |
Electronic Technology |
$8,778 |
59 |
97 |
7.7 |
0.9 |
6.4% |
3.3% |
2.2% |
$4.13 |
49 |
Deluxe |
DLX |
$48.30 |
Commercial Services |
$2,439 |
86 |
88 |
7.8 | 1.9 |
5.4% | 0.9% |
2.1% |
$1.96 |
50 |
Computer Sciences |
CSC |
$51.99 |
Technology Services |
$7,678 |
52 |
99 |
4.0 |
0.6 |
7.2% |
3.3% |
1.5% |
$12.67 |
Data source: FactSet
- Lead Analyst & Developer of the Value Leaders system: Jim Busch
- Fundamental Analyst: Robert Reid
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