Note
The Value Investor Podcast with Tracy Reinick discusses cheap, strong buy stocks that are Zack’s number one ranks, focusing on value and earnings estimates. The screening criteria for these stocks include a PE under 20, price to sales ratio under 1, and Zack’s number one rank, indicating strong buy. Five diverse stocks were highlighted, including Dreamfinder Homes, Tennant Healthcare, El Pollo Loco, Greenbrier, and Podiatrix Medical Group, with analysis on their earnings growth and potential value or traps.
Highlights
-
2024-12-11 10:03 So I ran the premium screen that you do have to have Zack’s Premium to run on our screening tools. And it’s called Undervalued Saks number one Stocks. Well, that seems pretty obvious, right? That’s exactly what we want. This is an easy screen.
-
2024-12-11 10:05 It’s already pre made. But what is in this screen? So it does look for average volume over 100,000 so that we’re not getting stocks that nobody is really caring about or noticing. The last close for the share has to be over 5 doll again so that we don’t get some kind of micro cap stock that nobody’s ever heard of. A PE has to be under 20, which some of our screens for value do use the 20 because it’s a little more generous.
-
2024-12-11 10:04 So the PE is under 20 and the price to sales ratio, that’s included in this screen as well. And that’s under one, which it always is. We always look for price to sales ratio under one.
-
2024-12-11 10:04 And why do we use price to sales ratio to find cheapness? Well, that is, as I always say, if you have a price to sales ratio of 0.7, for instance, that means we’re paying 70 cents for every dollar of the sales. So we’re getting them cheaper than what the company is generating. And that is a bargain that is on sale, so to speak. And that’s what we want.
-
2024-12-11 10:04 So it’s hard to get a price to sales ratio under 1. Also, some value investors like to use price to sales ratio because you can’t really mess around with it as much as you can with a PE ratio. And what I mean by mess around with is, you know, earnings.
-
2024-12-10 17:23 And I picked stocks out of it, five stocks to talk about that are also pretty diverse.
-
2024-12-11 10:04 So kind of staying flat basically so far, but looking for 335 in 2024, 337 in 2025. Two estimates are higher in the last 30 days for Dreamfinders. So that is why you got the Saks number one rank because nobody is cutting, they are raising and they’re in agreement. So that’s where we get the Saks number one rank. I did have to look because I didn’t write down here.
-
2024-12-11 10:04 It’s not crazy growth for next year, but it’s not a decline either. So now you know it’s one of those where keep an eye on it, keep it on your watch list. Tenant healthcare ticker, thc Then we’re going to switch over to restaurants. A lot has been going on in the restaurant industry. Some big winners, some big losers.
-
2024-12-11 10:04 But this one’s got the Zach’s number one rank. I used to follow it many years ago and then kind of dropped off my list, off my radar and I’ve always wanted to go to one but the last time I was in California I think I looked it up and there wasn’t one near me that I could even like Uber to easily. So I didn’t go. Now I’m regretting that. I guess I got to go back out some to one state they’re in and find one.
-
2024-12-11 10:04 And the restaurant chain is a Pollo Loco. Yes, I’m saying that wrong. I’m terrible on the names as you know. So I’m just going to call it Loco. And the ticker is Loco L O C O And they are famous for their fire grilling fresh citrus marinated chicken.