Invest Like Value Stock Gurus

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  • (0:30) – A Warren Buffett Stock Screener

  • (3:35) – Stocks To Keep On Your Watchlist

  • (7:45) – Finding Stocks Using The Ben Graham Stock Screener

  • (17:20) – Episode Roundup: PRDO, KBH, BCC, MOV, PETS

  • Podcast@Zacks.com

Welcome to Episode #296 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

With the stock market weakness in 2022, there are plenty of value stocks.

What if you could buy stocks like the top value stock gurus like Warren Buffett and Benjamin Graham?

Using Guru Screens

Zacks powerful Research Wizard screening tool has numerous built-in screens, including one that has screens of various gurus.

Among those screens are ones that look for Buffett-like and Ben Graham-like stocks. Even though Ben Graham is considered the “father” of value investing, and was once Warren Buffett’s boss, the two screens are very different.

Screening for Buffett-Like Stocks

The Zacks Buffett screen is quite extensive. It has 11 criteria, including items like Return on Investment and P/B ratio.

It doesn’t, however, include P/E or the Zacks Rank.

Running this screen returned just 2 stocks.

2 Buffett-Like Stocks in 2022

1.       Perdoceo Education PRDO

Perdoceo Education operates in postsecondary education, mostly online. It operates Colorado Technical University and American InterContinental University System which award associates, bachelors, master’s and doctoral degrees.

Perdoceo Education is cheap, with a forward P/E of just 8.2. It also has a PEG ratio of only 0.6. The PEG indicates Perdoceo has both growth and value.

Should Perdoceo be on your shortlist?

2.       KB Home KBH

KB Home is a national homebuilder. Shares have tumbled 37% as mortgage rates have risen and the home market has cooled.

KB Home is expected to grow earnings by 69% in fiscal 2022. Shares are cheap with a forward P/E of just 2.9.

KB Home also pays a dividend of 2%.

Is the home market slowdown already priced into KB Home or will it slide further?

Screening for Graham-like Stocks

The screen for Benjamin Graham-like stocks is much smaller than the one for Buffett, with just 5 criteria.

It also includes a dividend, which the Buffett screen does not. In a market with these volatile conditions, why not get some income for your patience?

This screen gave 18 stocks.

3 Ben Graham-like Stocks for 2022

3.       Boise Cascade BCC

Boise Cascade is one of the largest producers of engineered wood products and plywood in North America.

On Aug 1, when Boise Cascade reported second quarter results, it said that softening demand for new residential construction was going to be a reality through the balance of the year.

Earnings are expected to fall 58% next year to $8.40 from $20.06 in 2022.

Boise Cascade has a forward P/E of just 3.3 but it’s dividend is only yielding 0.7%.

Should Boise Cascade be on your shortlist?

4.       Movado Group MOV

Movado Group is a watch manufacturer under many luxury brands including Movado, Hugo Boss, Olivia Burton, Coach, Calvin Klein, Tommy Hilfiger and others.

Shares of Movado Group have fallen 23% this year. As a result, they’re cheap with a forward P/E of 8.

Movado Group has $203 million in cash as of the end of last quarter and no debt.

It’s also shareholder friendly and pays a dividend currently yielding 4.4%.

Should Movado Group be on your shortlist?

5.       PetMed Express, Inc. PETS

PetMed Express is the online pet prescription company but is transforming itself into a broader pet health brand.

Earnings are expected to fall 12.5% this fiscal year but shareholders are rewarded by a dividend currently yielding 5.8%.

Even though PetMed Express shares are down 17.7% year-to-date, it isn’t as cheap as the others, with a forward P/E of 22.5.

Should PetMed Express be on your shortlist?

What Else Should You Know About Investing Like Value Gurus?  

Tune into this week’s podcast to find out.

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
 
PetMed Express, Inc. (PETS) : Free Stock Analysis Report
 
KB Home (KBH) : Free Stock Analysis Report
 
Movado Group Inc. (MOV) : Free Stock Analysis Report
 
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
 
Perdoceo Education Corporation (PRDO) : Free Stock Analysis Report
 
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