This is the Value Investor podcast with Tracy Rinek, All Things Value All the Time. Welcome back value investors. So with everything still surging upward, I'm kind of thinking about what do us value investors want to look at right now? And I've covered some of the more interesting areas in the last couple of weeks, including like the drug stocks.
So I encourage people to go listen to the podcast I did on the drug stocks, whether or not those are some values right now or if they're kind of traps. And I would cover energy, but we just had WTI go back under 60 and those earnings are just going to be very terrible. Just bad for going into 2026. Now maybe by the second half of 2026 could be looking a little bit better on the energy side, not talking oil.
But right now, earnings are not looking good. I'm not sure those shares, the energy oil stocks have actually bottomed yet, perhaps, but not sure. So we'll take a look at that a little bit later in the year as we're getting closer to 2026. So today I was wondering which of the value stocks are breaking out, not those that are breaking down like the drug stocks, at least some of them, and the energy stocks, which value stocks, if any, are busting out and are at 52 week highs.
So we do have the screen on the X premium screens and I ran it and it is just value stocks at 52 week highs. So that's pretty easy. But what it looks for is value score of A on the style scores. And that score includes a bunch of different factors in there like PE, price to sales ratio, a bunch of those things are thrown in to get the style score.
And then it also looks for the high-sax ranked number one strong buys and number two buys. That's mostly what we screen for a lot of times here on the podcast anyways, if we were running the screen. And then to get at the 52 week high, it actually looks for stocks trading within 10% of that high. And so that would be 90% up if you are making your own screen put in higher than 90%.
And running that screen, I got, I think there's actually a value component to it too, so that we don't get really, really small stocks under $5 kind of thing. But even some of them trade with high volume. So you still might get some. But putting all that into the pot and running that screen, we got 18 stocks.
So that's a little bit more than I thought we would get. And per usual, there were some foreign companies on it. There were quite a bit in the mining areas like metals of some kind, gold, copper, might have been some silver in there, combinations, all of that. There were no oil because most of those don't have number ones or number twos.
And again, they're not at 52 week highs. Not a lot of financials because those aren't really at 52 week highs either. And then they might not have the style score of A. So this is the complicated thing with this screen.
You have stocks that are breaking out. So someone is paying attention, right? Someone is buying the stock. It's near its 52 week high.
But yet it still remains fairly cheap on a fundamental basis. So I guess getting 18 stocks is better than what it could have been now that I'm thinking about it. So what did I do? I picked out three stocks as I normally do out of the 18.
A couple of these we have definitely talked about in the past. Maybe all three of them. But seeing them here together is kind of interesting to me because they are all in different areas of the economy. So let's just dive right in and get to it.
So the first stock out of the gate is Copa Holdings, ticker, Cs and Charles, Ps and Paul A. I'm pretty sure we've discussed at least once on another podcast, maybe a couple of times. But this is an airline, which I know given some of our various experiences with airline stocks, you kind of have luck to look at. But this is a Panamanian airline.
Copa, if you've ever flown to Panama or anywhere in Central, South America, it services all of those markets. Whenever I'm at the Cancun airport, I see it on the runway all the time. So it's flying to Cancun. And it also flies out of most big US airports down to Panama.
And so it's kind of a connector that goes to Panama. It also has a low cost airline that flies mostly out of Columbia called Wingo. Wing with an O, Wingo. So it's basically the dominant airline in Central America.
And it really uses Panama as like a big hub out of Central America. Its growth has been strong. So I'm liking that. And even though it's busting out to 52 week high and it's actually at five year highs right now, it is very cheap.
So Copa is trading with a forward P of just 7.8. It has a peg ratio of 1.1. So that's all cheap. Remember a peg of 1 and under means there's both value and growth.
This is just slightly above it. It also is very shareholder friendly and is generating a lot of free cash flow. So it pays a really big dividend. And right now it's yielding 5%.
So it's paying $6.44 yielding 5%. Share price is at 127 right now when I'm recording this in October of 2025. It's 52 week and 5 year high is 130. I do own Copa in sex value investor portfolio.
It has a break broken out of a three year long kind of holding pattern. What's going on with earnings? How are we getting the number one or number two rank? This one is a two.
How are we getting that? Are the analysts really that bullish? And we have two estimates higher for next year in the last 60 days. And so we're expecting earnings growth this year of 13.5% and next year of 9.3.
That's all really solid. This year sales growth of 4.7 and next year 8.5. So this growth trajectory with Copa is continuing. Now it also helps that crude prices have come down.
So fuel is cheaper as well. And that lower cost makes a big difference in what happens with earnings. So keep that in mind. But I'm actually really liking this airline.
And again, anyone who's flown to Panama's likely probably flown on Copa. So you tend to like to buy stocks where you're familiar with the product. So Copa Airlines CPAs, Xx number two. And just out of curiosity, even though I didn't look it up, it is trading near or at the 52 week highs, as I've said, and the five year highs.
Let's just see what it actually is up year to date. So I know it is putting it in, comparing it to the S&P. Okay, it's up. I want to get this right.
44.9% year to date now, Copa. S&P up 13.6. None of these are shabby things. And five year though, up 143% now over the five year and the S&P up 91.
So it is outperforming the S&P, but mostly because of the breakout from this year. Like I said, it was in an era of three year trading range prior to that. So Copa, breaking out, things are looking up and people are paying up to fly right now. So I am liking all the travel and leisure stocks.
And even, yes, dare I say it, even the airlines. Okay, let's move on to the next stock. And it is one that I have talked about this one in the past two, because it's on gold. And how can we escape gold right now?
Not only is gold at new highs, but the miners are as well. This is a gold miner. And they are still cheap because those earnings are expected to soar again this quarter. They were at records, less quarter for many of the gold miners, and many had record free cash flows as well.
So we're going to have a lot of questions about what are they doing with all this money? That's going to be coming up because many of them have not yet taken the step of dividends or even a variable dividend. Some are paying a dividend and then have it doing share buybacks for right now. Some are deploying whatever cash they've gotten so far in 2025 to debt reduction.
And that's been great. But every quarter that we're seeing these record high gold prices, as long as they're getting it out of the ground, they're going to have this excess free cash flow. Oh, no, what a tough thing to have to do with it. So Eldorado gold is the miner.
EGO is the ticker. It's a number two. This one is a Canadian mid-tier gold and base metal producer. They have 30 years of experience in Europe and the Americas.
And they are in Quebec, Greece, and Turkey. And what else we need to know? This one's also at a five-year high like KOPA is. So not just 52 week high, but five-year high they are not paying a dividend.
Market cap of 5.8 billion. That's why it's kind of this middle grouping. It's not one of the mega ones on the gold miners, but it's not a small little junior one either. And they operate four mines right now.
PE is 16, so it's a little more expensive than what they've been at because of the surge. But a lot of the estimates aren't really being changed yet until the earnings report. So Eldorado expected to report on October 30th, and then we're going to see changes in those estimates. I feel like the gold mining analysts are kind of on the sidelines because gold is up every day.
They can't keep up with it, so they're just going to wait and see what happens at earnings and then adjust for the rest of this year and then maybe starting for next year as well. It is a number two, so we have had some estimates that are on the more bullish side and it's for both 2025 and 2026. One is higher for 25, but one is also lower in the last 30 days. Two are higher though for 26, so they're starting to adjust for 26 now.
Earnings expected to be up 12.7% for 2025 to $1.77 from $1.57. But next year, you're going to really see the impact of the gold price because they're looking for 3.14, which is another gain of 77.4%. Now remember, with the gold miners, it is execution. You got to get it out of the ground, much like with oil drillers.
So it's all nice and fun if gold is breaking out, but you've got to get it out yourself and you have to really be producing. Peg ratio is just 0.4 because of this big growth in the earnings that's expected. So even at these highs, very attractive valuations and I'm looking for more upside, given where the price of gold is at. Now it is trading about $4,200 an ounce as I'm recording this.
It's a new all-time high, but if it can hold above even $4,000 for this fourth quarter, it's going to mean massive free cash flows. So we'll see what happens with the cash with a lot of these miners. But right now, things are looking good, sex rank, value, and no dividend right now, but we'll see what happens with the cash. It's got to go somewhere.
Right? Okay, so that's elder out of gold. EGO is that ticker. And then the third stock is a bit of a wild card.
I will admit. And it's Macy's. ticker just M. M is a Macy.
And it's a number one right now. And that's the strong buy. It's got the A for value because forward PE is just at 9.1 for Macy's, 9.1. So, but we all know the problems with the department stores.
They kind of go up and down. It's not really a long term hold with some of these. It's much more of a timing issue. And these stocks, the stock is off of its recent lows.
Year to date, it's up just 9.2%. But over the last month, up six. So it has rebounded a little bit in the last month. Let me look at the three month.
Three month is where it's at. It had some earnings that weren't as bad. And then it rebounded off of those off of that. So three months, it's up 46.9%.
And that's how it's gotten back to the 52 week high. It's nowhere near, not even close to the five year high. So, and then let's even see for the one year. One year is up 15.6 now.
So, it is doing a little better than you would think over this time period. But how much more gas is left in the tank? Let's look at how is it getting the number one rank. Now, remember the rank is determined by analysts revising their estimates higher.
It doesn't necessarily mean that earnings themselves are going higher. So, we have two estimates higher for this fiscal year in the last 30 days and two for next year. So, that's where we're seeing the bullishness and the zax rankings. But earnings expected to be $1.96 this fiscal year and $1.96 next fiscal year.
No earnings growth at all. And earnings for this fiscal year are expected to decline 25.8% because it made 264 a year ago. And now it's only going to make $1.96. Also, it is paying a dividend.
And that dividend is pretty juicy. Let me look. It's yielding 4.1%. So, that's pretty high.
And the dividend is actually 73 cents a share. But as I always remind people, I'm warning them, make sure, especially with the retailer or in some industry where the earnings are on the decline, that this could actually be paid. But they're looking for $1.96 this year and next year. And they're paying 73 cents.
So, just keep that in mind if you are out there looking for income. We don't have that problem with COPA because while it's yielding 5% at COPA for right now, that is $6.44. It's expected for this year, the earnings estimates at $16.53 and then at $18.06 for 2026. So it would appear they can easily cover the $6.64 with those earnings.
So keep that in mind. I know a lot of people get excited of dividends over 4%. I like to get them to. I like to get any dividend.
Who doesn't? But these ones that are juicier, 4 or 5, even 6%. That's amazing. And you have to really kind of look, is this sustainable?
Can the company keep giving this to me without breaking the bank there? And with Macy's, it has been a struggle, but they did just pay out the dividend this last quarter once again. So, keep that in mind. Macy's ticker M, it's cheap, but those earnings are on the decline.
No news yet that they are going to rebound higher. And we have the tariffs still going out there. We have a jittery consumer. There's a lot going on with any kind of retail.
So I would be cautious, but I am going to keep this one on my watch list. It is a ZAC number one strong buy, but maybe a lot of it is already priced in. And that's why we're at the 52 week high. So keep that in mind as well.
Okay, so let me recap the stocks. We had COPA, CPA. We had Eldorado Gold, EGO. We had Macy's, ticker M.
And COPA, Eldorado, have not yet reported. We are getting those coming up in the next couple of weeks. Macy's, we just got, so you're going to have to wait a bit for that one again. Also keep in mind a lot is going to change with the gold miners during this earnings season because gold was at new record highs throughout last quarter.
They're going to crush it on the earnings, but how much and how big will those revisions be higher? We will see. So keep that in mind, but I'm going to be tuning into all of these and I'm keeping track of all the value stocks right now. There are still quite a few, but I'm also wondering why there aren't more money piling into some of these that appear to be dirt cheap, frankly.
COPA at 7.8 times forward. Nobody cares with a 5% dividend. But we do. And I know you do.
So I'm going to be watching a lot of different things. You want to make sure you subscribe to the podcast. Get us on sex podcast on YouTube. It's just an audio, but we have a whole podcast page on YouTube.
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