5 Top Ranked Value Stocks To Buy Now

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With some of the major averages, like the S&P 500, hitting new all-time highs yet again, this is the time when value investors can get a bit anxious.

Is the market overvalued?

Even the old stalwarts are no longer cheap. Both the energy and financial sectors, formerly the cheapest and most ignored parts of the market, had big rallies to start 2021.

With them out of the equation, where can you find true value stocks now?

Screening for Strong Buy Value Stocks

The Zacks Rank #1 (Strong Buy) stocks are a rare bunch.

Currently, there are only 233 #1 Rank stocks out of over 4400 companies.

These are the companies that should, hopefully, have seen recent analyst estimate revisions to the upside which results in rising earnings estimates.

And that’s what we want to buy: earnings that are on the rise.

But how many of those companies are actually cheap as stocks continue to hit all-time highs?

To find the “cheap” part of the equation, you can look for companies with forward P/Es under 20 and P/S ratios under 1.0.

Running this screen, 39 companies qualified.

That’s a lot of value stocks.  

What made that list?

5 Strong Buy Value Stocks to Buy Now

1.       Winnebago Industries, Inc. (WGO - Free Report), the RV manufacturer, is expected to grow its earnings by 180% year-over-year. The Zacks Consensus is calling for $7.24 versus the $2.58 it made last fiscal year. Even with the pandemic easing, Americans still want to hit the open road. Shares are cheap, despite the recent rally. They trade with a forward P/E of just 11.

2.       Thor Industries (THO - Free Reportalso manufactures RVs and towables, including popular brand Airstream. Earnings are expected to double this fiscal year as sales jump another 36%. You’re still getting those sales at a discount, as it has a P/S ratio of just 0.8.

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Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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