STOCK IDEAS | Updated: 7-Nov-18
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 November 7, 2018
alue 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 factors with above-average 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 sustained 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).

All Value Leaders content is published under the custom ticker "VALUE", which makes it simple to search for commentary or set up alerts.

If you have any questions or feedback regarding Value Leaders, please write to: rreid@briefing.com.

 

  • Additions: ALK, CEIX, CMI, CORE, EVC, ITT, JBLU, NTRI, OSK, SIG, SKX
  • Deletions: AEO, AGCO, ATGE, BBY, FII, GCAP, LZB, NCR, RL, SBH, URBN

          

The following table contains a list of stocks that we believe should be particularly attractive to value 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 and healthy 6-month Relative Strength. There are no growth or market cap criteria applied to this list. Note: FCF Yield is calculated based on Enterprise Value (EV), not market cap. Also Note: Both cash per share calculations include Cash + Short Term Investments; Net Cash backs out long term debt.

*** 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: November 7, 2018
          Mkt Cap RS Value EV/ EV/ FCF Cash/ Net Cash/ LT Debt
Rank Name Ticker Price Sector (mln) Rank Rank EBITDA Sales Yield Share Share to Equity
1 Waddell & Reed WDR $19.42 Investment Managers $1,532 61 100 3.4 0.7 16.4% $9.85 $8.65 11%
2 Vera Bradley VRA $13.70 Apparel/Footwear $495 64 99 7.1 0.8 14.3% $3.74 $3.74 0%
3 Foot Locker FL $48.97 Apparel/Footwear Retail $5,825 62 99 5.4 0.6 11.9% $8.12 $7.06 5%
4 Entravision Comms EVC $5.34 Broadcasting $341 91 98 1.4 0.7 67.9% $2.69 $(0.58) 87%
5 Shoe Carnival SCVL $38.92 Apparel/Footwear Retail $649 91 98 8.2 0.6 10.9% $2.50 $2.50 0%
6 Dick's Sporting Goods DKS $36.14 Specialty Stores $3,793 76 98 5.1 0.4 10.4% $1.25 $(0.47) 9%
7 Skechers SKX $29.59 Apparel/Footwear $4,765 76 98 8.3 0.9 6.5% $5.69 $5.14 3%
8 DSW Inc. DSW $27.46 Apparel/Footwear Retail $2,247 63 98 7.2 0.7 6.2% $3.60 $3.60 0%
9 Cal-Maine Foods CALM $49.94 Food: Specialty/Candy $2,416 80 97 7.6 1.3 10.5% $6.62 $6.53 0%
10 HP Inc. HPQ $24.73 Computer Hardware $39,370 78 97 7.4 0.7 7.1% $4.38 $(0.06) #N/A
11 Cirrus Logic CRUS $41.12 Semiconductors $2,487 78 96 8.6 1.6 12.0% $3.92 $3.92 0%
12 Gannett GCI $10.20 Publishing: Newspapers $1,160 64 96 3.8 0.4 3.5% $1.84 $(1.06) 30%
13 AmerisourceBergen ABC $85.67 Medical Distributors $18,174 62 96 8.1 0.1 7.3% $11.46 $(7.66) 136%
14 Fabrinet FN $49.71 Electronic Components $1,842 96 95 12.6 1.1 6.6% $8.89 $7.16 8%
15 Kohl's KSS $78.78 Department Stores $13,377 85 95 6.5 0.8 8.6% $6.42 $(17.27) 69%
16 Caleres CAL $36.03 Apparel/Footwear $1,616 74 95 8.3 0.6 6.8% $2.44 $(2.25) 27%
17 HollyFrontier HFC $67.32 Oil Refining/Marketing $11,349 55 95 5.9 0.8 5.8% $6.08 $(7.54) 40%
18 Cardinal Health CAH $52.87 Medical Distributors $16,223 72 94 7.4 0.2 7.7% $5.69 $(23.39) 132%
19 Williams-Sonoma. WSM $61.78 Specialty Stores $5,131 72 94 8.0 1.0 5.0% $2.10 $(1.50) 28%
20 EMCOR Group EME $74.21 Engineering & Construction $4,281 61 94 8.8 0.5 3.3% $6.09 $0.97 16%
21 McKesson MCK $130.86 Medical Distributors $25,125 59 94 8.8 0.2 7.8% $10.64 $(35.03) 70%
22 United Continental UAL $91.07 Airlines $24,424 93 93 4.7 0.8 6.3% $18.04 $(34.52) 141%
23 H&R Block HRB $27.96 Consumer Services $5,625 87 93 6.4 1.9 9.7% $5.35 $(1.86) 779%
24 Juniper Networks JNPR $30.20 Computer Communications $10,396 87 93 10.1 1.9 5.4% $9.67 $3.57 38%
25 Yum China YUMC $36.66 Restaurants $14,249 71 93 9.8 1.5 4.2% $3.89 $3.82 1%
26 Domtar UFS $49.00 Pulp & Paper $3,062 69 93 6.4 0.7 5.8% $4.05 $(13.42) 43%
27 Macy's M $36.06 Department Stores $11,367 67 93 6.0 0.6 6.2% $3.42 $(14.32) 93%
28 Oshkosh OSK $67.80 Trucks/Construction $4,893 57 93 7.2 0.7 3.3% $6.16 $(4.93) 33%
29 Nordstrom JWN $65.43 Apparel/Footwear Retail $11,371 95 92 7.8 0.8 4.0% $7.89 $(8.17) 235%
30 Aaron's AAN $50.20 Finance/Rental/Leasing $3,463 85 92 10.4 1.0 7.2% $0.50 $(3.74) 17%
31 Alaska Air. ALK $65.72 Airlines $7,965 78 92 7.1 1.1 3.8% $11.36 $(5.02) 44%
32 Quanta Services PWR $34.98 Engineering & Construction $5,180 75 92 8.9 0.6 4.4% $0.74 $(5.61) 25%
33 Alliance Resource ARLP $19.39 Coal $2,519 67 92 4.9 1.5 6.2% $0.29 $(3.16) 34%
34 FTI Consulting FCN $67.38 Commercial Services $2,576 59 92 9.8 1.3 6.5% $13.05 $(1.40) 19%
35 Delta Air Lines DAL $56.05 Airlines $38,031 77 91 5.8 1.0 3.8% $2.78 $(10.73) 59%
36 ITT, Inc. ITT $56.46 Industrial Machinery $4,922 72 91 9.7 1.7 3.8% $5.93 $4.17 1%
37 Sleep Number SNBR $38.26 Home Furnishings $1,305 96 90 10.6 1.0 5.1% $0.04 $(3.84) #N/A
38 CVS Health CVS $79.92 Drugstore Chains $79,307 92 90 7.9 0.5 3.8% $40.79 $(20.74) 166%
39 Cummins CMI $143.74 Trucks/Construction $23,299 72 90 8.8 1.1 3.5% $8.70 $(6.54) 22%
40 JetBlue Airways JBLU $18.06 Airlines $5,443 59 90 5.6 0.9 3.1% $3.02 $(3.41) 39%
41 Nutrisystem NTRI $35.80 Consumer Services $1,080 57 90 11.2 1.4 3.6% $3.13 $3.13 0%
42 Walgreens Boots WBA $80.85 Drugstore Chains $76,503 95 89 11.2 0.7 5.7% $1.00 $(13.73) 48%
43 Target TGT $86.01 Specialty Stores $45,050 83 89 8.5 0.7 4.0% $2.20 $(18.59) 91%
44 Murphy USA MUSA $79.86 Specialty Stores $2,624 71 89 9.4 0.2 4.1% $2.37 $(24.30) 116%
45 Herman Miller MLHR $34.22 Office Equipment $2,026 53 89 8.8 0.9 3.1% $1.84 $(2.93) 42%
46 Core-Mark CORE $30.38 Wholesale Distributors $1,389 84 88 14.6 0.1 8.0% $0.82 $(7.31) 66%
47 Omnicom Group OMC $75.08 Advertising Services $16,965 80 88 8.7 1.3 6.0% $9.32 $(12.23) 183%
48 Signet Jewelers SIG $59.69 Specialty Stores $3,174 80 88 14.7 0.7 38.0% $2.39 $(11.56) 48%
49 Acuity Brands AYI $131.30 Electrical Products $5,331 64 88 10.3 1.5 5.2% $3.22 $(5.68) 21%
50 CONSOL Energy CEIX $40.35 Coal $1,137 58 88 4.1 1.3 5.4% $9.67 $(21.05) 267%

Data source: FactSet

  • Lead Analyst: Robert Reid, Senior Equity Analyst, Briefing.com

Value Leaders content can be found on the Stock Ideas page, located within the Investing & Trading menu. On Live In Play, all of the Value Leaders content is published using the "VALUE" ticker. Comments or suggestions? Please send them to rreid@briefing.com.