Podcast: The Easiest Value Stock Screen Ever

Sometimes you just want to find cheap stocks but you don't want to search for a bunch of the value fundamentals. You just want a basic screen.

Why not screen for low P/E ratio stocks?

Sure, it's not a perfect metric, but it's a basic fundamental that will get you "cheap" stocks, at least on an earnings basis.

The Easiest Value Stock Screen Ever

In order to get really cheap stocks, however, you'll probably want to lower the range of P/Es you look for.

Normally, a P/E under 15 usually designates value. That's under the current P/E of the S&P 500 which is around 18.

But if you're going to screen for basic value stocks, why not go lower?

Screening for stocks with P/Es under 10, in a market that continues to hit new highs, means you're going to get the cheapest stocks.

But that's still a wide screen. You'll have to look through hundreds of stocks. The screen, then, looks for stocks with a forward P/E under 10 as well.

That returned 99 stocks.

Out of those 99, Tracey took a closer look at 5 companies. Are they truly value stocks?

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