The coronavirus stock market correction continued into March with big, volatile swings and a 50-basis point Federal Reserve rate cut.

Value stocks have been hit hard in the sell-off as they were already out of favor by investors. The “hot” stocks still remain the “hot” stocks. But those that were “cold” got even “colder”.  

Screening for Classic Value Stocks

But with the correction, comes opportunity.

Value investors are resilient. If you liked the cheap stocks before the sell-off, you like them even more now.

Classic value stocks usually entail those that have all the class value fundamentals including low P/E, P/S, P/B and PEG ratios along with a low P/cash flow as well.

Combining that with the power of the Zacks Ranks of #1 (Strong Buy) and #2 (Buy), to hopefully get rising earnings estimates, should produce a small but dirt-cheap list of stocks.

Before the correction, this screen would return just 5 or 6 stocks.

But this time, it produced 26 stocks.

5 Dirt-Cheap Classic Value Stocks

1.       Lumber Liquidators (LL - Free Report), a specialty retailer of hardwood flooring, has a P/E ratio of just 11.4 even though the shares are actually up 22% in the last month, instead of being lower like most stocks. It has a PEG ratio of just 0.4. Is Lumber Liquidators a hidden gem?

2.       Delta Airlines (DAL - Free Report) has had two insiders buy during the market correction, a director and 10% shareholder Berkshire Hathaway. It’s dirt cheap, with a forward P/E of 6.3. It also pays a dividend-yielding 3.4%. But when will travel recover?

3.       Berry Petroleum (BRY - Free Report) is an independent upstream energy company with oil reserves in the San Joaquin basin of California. It’s the cheapest stock of these 5, with a forward P/E of just 3.9. It’s shareholder-friendly and is now yielding 7.6%.

4.       G-III Apparel Group (GIII - Free Report) is a specialty retailer with iconic global brands of DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. Shares have fallen about 25% in the past month on the fears of a consumer slowdown in China. It trades with a forward P/E of just 6.8 and a PEG of 0.6.

5.       KB Home (KBH - Free Report) is a California-based national home builder. With mortgage rates plunging to record lows thanks to the Fed’s rate cut, the shares have barely pulled back in the recent correction. Yet, they’re still cheap with a forward P/E of just 9.4 and a P/S ratio of 0.7.