STOCK IDEAS | Updated: 30-Oct-13
In-house focus list of the most compelling investment and trading opportunities in the eyes of Briefing.com’s analytical team. Also incorporates periodic Special Situations reports on theme-based market opportunities.

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
          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 7.50.6 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 5.51.4 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 5.40.7 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 8.30.7 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 5.11.0 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 6.40.8 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 9.60.3 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 4.30.8 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 10.40.4 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 7.30.5 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 7.10.6 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 6.71.5 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 9.01.6 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 10.91.1 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 7.81.9 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