- (1:00) – Value stocks are on the rise
- (7:30) – Stock Analysis Criteria for Value Near All-Time Highs
- (11:25) – Tracey’s Top Stock Picks
- (26:45) – Episode recap: HRB, MCK, LRN, TAC, MUSA
- [email protected]
Welcome to episode #289 of the Value Investor podcast.
Each week, Zacks Value Investor Portfolio Editor Tracey Ryniec shares some of her top investing tips and stock picks.
Value has outpaced growth in 2022. While some growth stocks have fallen as much as 80% this year, energy and agriculture had boosted value stock results until a month ago, when they also fell.
Is there anywhere investors can find stocks that are actually higher this year?
Or are these creatures a myth?
Screening for value stocks near 52-week highs
There is a screen on Zacks.com called “Value Stocks at 52-Week Highs” which has a Zacks rating of #1 (Strong Buy) and #2 (Buy). For the “value” part of the screen, he uses a Zacks value style score of A, which is the highest style score.
It screened stocks within 10% of the 52-week high.
Running the screen only returned… 4 actions.
Only 4 value stocks have the best Zacks ranking and are near their highs.
Additionally, Zacks has a screen that simply looks for #1 rank (strong buy) stocks near their highs. This screen came back… only 2 actions.
Here are the 4 value stocks plus the rank #1 bonus stock, which is also a value stock.
5 value stocks near their 52-week highs
1. H&R Block, Inc.HRB
H&R Block, the global tax preparation company, is booming in 2022. Shares are up 56.4% and near their 52-week high.
H&R Block remains cheap despite the surge in stocks. It has a forward P/E of 10 and a PEG ratio of 0.8.
H&R Block also pays a dividend, which currently yields 2.9%.
Is it too late to buy H&R Block?
2. McKesson Corp. MCK
McKesson works with healthcare providers, pharmacies and manufacturers to provide the right medications. Shares are up 31.3% year-to-date and near 52-week highs.
McKesson is also cheap, with a forward P/E of 14.4. It also pays a dividend, which currently yields 0.6%.
Should McKesson be on your shortlist?
3. Stride, Inc. LRN
Stride is a learning company that provides online and blended learning solutions. On July 5, 2022, it was added to the S&P Small Cap 600 Index.
Stride shares are up 21.3% year-to-date and near their highs. Besides being cheap, it also has growth, with a PEG ratio of 0.8.
Should Stride make your watchlist?
4. TAC of TransAlta Corp.
TransAlta is a Canadian utility company operating in wind, solar, hydroelectricity and gas in Canada, the United States and Australia.
TransAlta shares are up just 4.3% year-to-date, but are near their 52-week high and outperform the S&P 500, which is down nearly 20%.
It’s not as cheap as the others, with a forward P/E of 18.1. Profits are expected to climb 178% this year.
TransAlta pays a dividend, which currently yields 1.3%.
Should investors hide in utility stocks like TransAlta this year?
5. Murphy USA Inc. MUSA
Murphy USA operates gas stations and convenience stores across the United States under the names Murphy USA, Murphy Express and QuickChek.
With gas prices soaring, it’s no surprise that investors have piled into gas station stocks. Murphy USA is up 33.5% year-to-date and trading at a 52-week high.
It’s cheap with a forward P/E of 15. And Murphy USA pays a dividend, which currently yields 0.5%.
What else do you need to know about value stocks at new highs?
Tune into this week’s podcast to find out.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
Free: See our best stock and our 4 finalists >>
Click to get this free report
McKesson Corporation (MCK): Free Stock Analysis Report
H&R Block, Inc. (HRB): Free Stock Analysis Report
TransAlta Corporation (TAC): Free Stock Analysis Report
Murphy USA Inc. (MUSA): Free Stock Analysis Report
Stride, Inc. (LRN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.