5 Value Stocks Breaking Out Right Now

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I have selected 5 stocks that I think Value-Investors would be especially interested in.

5 Value Stocks Breaking Out Right Now

1. AmerisourceBergen Corp. (ABC - Free Report) , the pharmaceutical products provider, has a forward P/E of 16.4. Many healthcare stocks lagged in 2017 but ABC shares are up 11% in 2018. It’s expected to report earnings on Feb 6.

2. GATXCorp. (GATX - Free Report) has a forward P/E of 15.9. It already reported earnings and said there’s still an industry-wide railcar overcapacity issue. However, its managing the downward part of the cycle. Analysts have recently gotten more bullish that the worst may be over in the industry, as it raised 2018 earnings estimates after the earnings report.

3. Gap, Inc. (GPS - Free Report) is more expensive than it was in the middle of last year but it still trades with a forward P/E of 16.8, which is under that of the S&P 500. Shares spiked in November and December and started off 2018 hot. Is the worst over for the apparel retailers?

4. SonyCorp. (SNE - Free Report) is more than just electronics, PlayStation 4 and movies. It recently presented at CES 2018 in Las Vegas for its image sensors. The sensors can detect their 360-degree surroundings, which is helpful for automobiles. It has a forward P/E of just 17.6.

5. Lithia Motors (LAD - Free Report) has been a value stock for years. In 2015 and 2016, the shares plunged on peak auto concerns but they’re back to new 5-year highs. This auto retailer has a forward P/E of just 13 and a PEG ratio of 0.6. It’s a rare combination of both a value, growth AND momentum stock.

Most of these companies haven’t yet reported earnings. Investors should be sure to tune into those earnings reports and the conference calls to find out how 2018 is shaping up.

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

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