Value stocks offer an opportunity to buy a stock that is currently undervalued by the market. Longer term investors tend to love value stocks as way to take advantage of current market conditions changing over time. A stock that might be ignored by investors today could be a big pay day tomorrow.
Some value stocks can offer speculative investors opportunities to profit during earnings season. A company’s earnings present a chance for a value company to no longer be labled as value, if the company shows it is outperforming market expectations.
Below I take a look at four stocks that could potentially beat earnings and offer value to investors. These stocks all have are aZacks Rank #1(Strong Buy) and have a Zacks Stlye Score of “A” or “B” in Value.
Tech Data (TECD – Analyst Report) is a Zacks Rank #1(Strong Buy) that is a leading provider of internet technology products, logistics management and other value-added services.It distributes and markets broadline products, such as notebooks, tablets, desktop systems, printers, supplies, and components; and data center products, including servers, server accessories, networking products, storage hardware, and networking support services.
Tech Data has a market cap of $2.7 Billion and a Forward PE of 13. The stock sports a Zacks Style Score of “B” in Value and has a VGM score of “B”. Last quarter the company beat on earnings and saw quarter over quarter sales growth of 16% and quarter over quarter EPS growth of 79%.
Over the last month, analysts have been raising estimates for Tech Data. For fiscal year 2017, revisions have been lifted 4.2% higher, from $5.83 to $6.08. For 2018, they have been raised 3.9%, to $6.34 from $6.10.
Last quarter Tech Data reported a 9.05% EPS beat, which lifted the stock the 52 week highs. The company reports on May 26th where it will go for a fourth EPS beat out of the last five quarters.
Johnson Outdoor (JOUT – Snapshot Report) is a Zacks Rank #1(Strong Buy) that designs, manufactures, and markets outdoor equipment, diving, watercraft, and marine electronics products worldwide. The Company designs, manufactures and markets across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment.
