Welcome to Episode #20 of the Value Investor Podcast

Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.

Recently, investors have been fretting about whether there are any value stocks with all the major indexes hitting new record highs.

Tracey can still find plenty of value stocks but what about those that are dirt cheap? What about stocks with single digit P/Es?

Of course, she also wants good fundamentals and that means Zacks Ranks of #1 (Strong Buy), #2 (Buy) and #3 (Hold).

In order to narrow it further, and bring out the cheapest stocks, she also included a price-to-sales ratio under 1.0 which usually indicates that a company is undervalued.

She thought she wouldn’t find many stocks with these criteria given the recent bull market rally but she was wrong. Her screen returned 97 companies. She ruled out a couple of areas that she considered “value traps” (tune into the podcast to find out what those industries are) and was able to narrow the list down to these 5 stocks. They’re all in different industries but all are dirt cheap.

5 Stocks With P/Es Under 10

1. Pilgrim’s Pride (PPC): has a forward P/E of just 9.6 and a P/S ratio of only 0.6.

2. Wabash National (WNC): never heard of this commercial truck manufacturer? It is trading with a forward P/E of only 7.5 and has a P/S ratio of just 0.4.

3. Owens-Illinois (OI) is one of the largest glass bottle manufacturers in the world. Earnings are expected to rise another 8.4% next year and it’s only trading with a forward P/E of 7.8. Cheap!

4. Chicago Bridge & Iron (CBI) is among the cheapest on this list. It has a forward P/E of 6.7 and a P/S ratio of just 0.3. And it could be a big winner if the infrastructure plan gets passed.

5. HP Inc. (HPQ) is one of the companies split from the old HP. This is the hardware side. It makes computers and printers. That may seem boring but it’s a true value stock with a forward P/E of 9.5 and a P/S ratio of 0.5.

The small and mid-cap stocks are up 20% year-to-date which is the signal of a bull market.

Investors need to look beyond the traditional glamour and well-known names for bargains. They are out there.

Find out more about these 5 cheap stocks on this week’s podcast.

PPC: https://www.zacks.com/stock/quote/PPC?cid=cs-soundcloud-ft-pod

WNC: https://www.zacks.com/stock/quote/WNC?cid=cs-soundcloud-ft-pod

OI: https://www.zacks.com/stock/quote/OI?cid=cs-soundcloud-ft-pod

CBI: https://www.zacks.com/stock/quote/CBI?cid=cs-soundcloud-ft-pod

HPQ: https://www.zacks.com/stock/quote/HPQ?cid=cs-soundcloud-ft-pod

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