3 Brand New Strong Buy Value Stocks for June 10th

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Every day at Zacks, our Zacks Rank system positions all stocks from #1 (Strong Buys) to #5 (Strong Sells). Today, several stocks were added to the #1 (Strong Buys) list, and it just so happens that 3 of them have Value Style Scores of an A, making them not only top ranked Zacks stocks, but solid value plays as well. Let's take a look at this new trio below: 

Sanmina Corporation SANM

Based in San Jose, California, Sanmina Corporation is engaged in providing electronics contract manufacturing services. The corporation focuses on engineering and fabricating complex components and also on providing complete end-to-end supply chain solutions to Original Enterprises Manufacturers.

Some of the services the Sanmina Corp. provides include product design and engineering, including initial development, detailed design, prototyping, validation, preproduction services and manufacturing design release; manufacturing of components, subassemblies and complete services; final system assembly and test; and a several other manufacturing services.

Aside from being a Zacks Rank #1 (Strong Buy) stock, SANM has several other factors behind it that warrant investment consideration. A low P/E ratio of 12.15, a price to sales ratio of .32, a cash to price ratio of 36.44, and cash flow per share of $3.44/share helps to give SANM its A Value Style Score. The company also operates in an industry that is ranked in the top 26% of all industries by its Zacks Industry Rank .

SANM also has a high Growth Style Score of a B, which can be attributed to a solid net margin of 6.29%, cash flow growth of 7.17%, and projected sales growth of 2.02%. This percentage for sales growth might seem low, but for a company that had $6.50 Billion in sales last year, it is actually a very significant figure.

The company has also seen a great deal of positive EPS estimate revision activity from analysts as of late. For the current year there have been 2 upward estimates in the last 60 days, pushing the current EPS estimate figure to $2.34 from $2.13 60 days ago, which would represent EPS growth of 13.5% year-over-year. For the next quarter, ending 9/2016, there have also been upward revisions in the last 60 days, and the growth estimate for the quarter is 25.47%.

 

POSCO PKX

 

POSCO is a multinational steel-making company headquartered in Seoul, South Korea. The company manufactures hot and cold rolled steel products, heavy plate, and other steel products for the construction and shipbuilding industries. POSCO operates through 4 segments: Steel, Construction, Trading, and Other.

POSCO is now a Zacks Rank #1 (Strong Buy) stock, and is also a great option as a value play for investors looking to profit from the latest uptick in commodities. The steel producer industry in which POSCO operates in is ranked highly too, ranking in the top 28% of all industries. Behind its A value style score, the company has a P/E ratio of 12.89, an earnings yield of 7.45%, and a cash flow/share of $9.56/share, which is a great deal higher than the industry average of $2.01/share.

POSCO is also holds a B for its Growth Style Score from Zacks, which can mainly be attributed to major projected increases in the company's earnings compared to last year. The current year is projected to produce EPS growth of 754.75%, and the following year is projected to see an added 48.47% on top of that.

The company has also been on a roll lately with commodity price increases being a major factor. POSCO has had an upward price change in its stock price of 9.29% in the last 12 weeks, with 6.31% coming in just the last 4 weeks. The major uptick and price along with upward EPS estimate revisions from analysts have also earned this stock an A for its momentum style score.

 

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SPX Flow Inc. FLOW

 

Based in Charlotte, North Carolina, SPX Flow Inc. is a supplier of engineered flow components, process equipment and turn-key systems, along with the related aftermarket parts and services. The company's operating segments consist of Food and Beverage, Power and Energy, and Industrial.

Also a Zacks Rank #1 (Strong Buy) and 'A' Value Style Score stock, FLOW should be on the radar of not just those looking for value stocks, but all investors. This company also operates in a high-ranking industry, which comes in 65th of 265, or within the top 25% of all industries.

As mentioned, the stock has an 'A' Value Style Score which can be attributed to several measures. FLOW has a P/E ratio of 16.27, a Cash Flow/Share of $4.46/share, which is much higher than its industry average of just $1.76/share, an earnings yield of 6.07%, and a price/book ratio of just 1.02.

Analysts of FLOW have been busy upping their EPS estimates as of late which is another strong sign for the near future. There have been 3 upward revisions for the current year in the last 60 days, pushing the EPS consensus estimate from $1.61 all the way up to $1.87. For the current and next quarters there have been 3 and 4 upward revisions, respectively, pushing the consensus estimates for both much higher.

 

Bottom Line

 

In times of volatility and uncertainty, many investors flock to stocks that offer not only the possibility for high potential returns, but also for stocks that offer solid value, and that are not over priced. These stocks fit this profile, and should be looked at not only by value investors, but all investors looking for potentially profitable stocks, operating in top-ranked industries, at a reasonable price.

Be sure to check Zacks daily for the latest Strong Buy-ranked stocks!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report

SPX FLOW INC FLOW: Free Stock Analysis Report

POSCO-ADR PKX: Free Stock Analysis Report

SANMINA CORP SANM: Free Stock Analysis Report

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