It’s been tough to be a value investor in 2020 with stocks hitting new highs nearly every day.

But the coronavirus fears have awakened the bears. Stocks have staged a pullback, with some individual names already in a correction, which is 10% off the highs, and others are in a bear, which is 20% off their highs.

How do value investors find the bargains?

Look for Beaten Down Industries

Those that were values before the pullback are going to remain values afterwards. In fact, investors tend to flee those stocks that are out of favor quicker in times of volatility.

That’s why the super-cheap stocks right now are found in the hated industries like energy, retail, and the banks.

No one wanted to buy stocks in those areas, even at the highs.

But you can get them much cheaper now.

5 Stocks for Your Wish List in 2020

1.       JP Morgan Chase (JPM - Free Report) is among the best in class among the big banks. Shares have fallen 7% in the last week. It has a forward P/E of just 11.8.

2.       Bank of America (BAC - Free Report) is even cheaper, with a forward P/E of 10.2. Shares have fallen 12%. It pays a dividend, currently yielding 2.3%.

3.       Royal Caribbean (RCL - Free Report) has fallen 25% in just the last week on worries about travel and tourism. It now trades with a forward P/E of just 8.9. It has a dividend yield of 3.5%.

4.       Lululemon (LULU - Free Report) is one of the top retailers in the world. Shares were hitting new all-time highs last week but are down 9.5% in the pullback. It has 38 stores in China. What will be the impacts? It’s still expensive, with a forward P/E of 41.

5.       Micron (MU - Free Report) and the semiconductors were flying high into the news of the outbreak. The bottom of the cycle appeared to be in. Demand was up as were prices. But now? Micron is down 9.3% over the last week. It’s not cheap yet, with a forward P/E of 21.