5 Value Stocks For The Second Half Of 2020

Market Edge From Zacks · 5 Value Stocks for the Second Half of 2020

  • (0:20) - Have Value Stocks Been Left Behind?
  • (5:00) - Looking For Value Companies With Strength: Stock Screener
  • (9:30) - Tracey’s Top Stock Picks
  • (20:10) - Episode Roundup: PXD, ABG, BIG, CNC, GTN
  • Podcast@Zacks.com

Every week, Tracey Ryniec shares some of her top value investing tips and stock picks.

It’s been a crazy year for stocks, and the world, thanks to COVID-19.

But now the calendar has turned and we’re officially in the second half of the year.

Growth stocks continue to be the superstar stocks of 2020 despite the recovery rally off the coronavirus lows which lifted all boats.

But there may still be some opportunities in value stocks too.

Remember the Top Rule of 2020: Buy Strength

With coronavirus cases on the rise in the United States, there’s still a level of uncertainty with the economy.

Will it remain a “V” recovery?

No one knows.

That’s why investors should own the strong companies. Even within the value universe, there are strong value companies and there are weak ones.

In the spring, the Value Investor podcast covered the energy exploration and production companies and warned against those with lots of debt.

Investors should buy the strongest energy companies with the lowest debt ratios like Pioneer Natural Resources (PXD - Free Report).

Shares have retreated over 20% in the last month after a big recovery rally.

Screening to Find the Best Value Stocks

The Zacks Rank is working well during these market conditions to highlight companies with rising earnings estimates.

The Zacks Value Style Score of A and B, the two highest scores, can also narrow the universe of value stocks.

Add in an Industry Rank in the top 50, to avoid getting those industries, such as the fertilizers, which are struggling.

And look for stocks over $5 to cut out some of the more speculative plays.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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