Value Stock Picks in an Elevated Market

Although today’s market is a bit pricey, it still offers some values if you shop around and properly evaluate a company’s operations and financials. This according to Validea CEO in a recent article for TheStreet.

The article underscores the investment mantra of Warren Buffett–“It is far better to buy a wonderful business at a fair price than a fair business at a wonderful price” – as well as the strategy of the late, great Benjamin Graham that focuses on stocks with a high “margin of safety” between the stock price and a company’s intrinsic value.

Validea - Committment

Reese identifies the following value stocks that score well according to his guru-based stock screening models:

  • Gilead Sciences (GILD), a research-based pharmaceutical company with a favorable earnings yield and return-on-capital as well as continually expanding earnings-per-share.
  • Thor Industries (THO) manufactures recreational vehicles in the U.S. and earns high marks for persistent growth in earnings-per-share and a solid price-sales ratio, as well as a favorable relationship between price-earnings and EPS growth (PEG ratio).
  • Manpower Group (MAN), a provider of workforce solutions and services, gets a thumb’s up for its PEG ratio, persistent earnings growth and favorable price-sales ratio.
  • NVR (NVR) is engaged in the construction and sale of single-family detached homes, townhomes and condominiums and earns high marks for its average EPS growth and favorable PEG ratio.