This is the Value Investor Podcast with Tracy Rinek, All Things Value All the Time. Welcome back, Value Investors. So I wanted to do some screening this week because it's always fun and we've always used or mostly used the predetermined screens here on the Value Investor Podcast from Zacks.com, where you have to be a premium member here at Zacks to get access to those, but of course I am. So I'll screen them, I'll run the screens, and then we can talk about it.
But I've also looked at screens and we looked at one of these last week when I looked at the Warren Buffett screen that's on Zacks Research Wizard, which is our more advanced product that is used by financial advisors and those in the financial industry. And that has that fun little screen on there. But I also recall that I was talking about the basic screens that are on Zacks.com. So these are what it says, they're the basic ones, but they are available to anyone and you don't have to be a premium member, nothing.
You can just go to Zacks.com, go to the screening up at the top and click on the screening button. If you look down the second little tab there is Stock Screener, click on that, I'm doing it right now as I'm saying this, and then it will bring up the little screening like module thing and it gives you two. Okay, so I clicked on that and yes, then it brings you like the screening thing and what you can do, but you need to click on the predefined button. It's kind of up at the top, it says New Screen, Edit Criteria, Edit View, My Screen, if you're going to make your own, which you can do on here too.
And then it says predefined, click on that and then you'll see a couple of little sentences there and then it says Basic with a button and Premium. The Premium has our little logo, that little green triangle. And so you have to be the premium, that's one we normally use, but the basic is just free and clear and it has no little logo. So click on there and you will get a bunch of our just basic screens.
Now I haven't really looked, value shows up like right away and it has one that just says Classic Value with Growth and that is one that is super attractive to us. So I am going to talk about it a little bit more in a second and then we have Growth Screens, but sometimes you have to look at those because the growth screens could also include value stocks sometimes depending on how it's designed. So I see one that says Sales Growth and it says Strong Sales Drive Stocks. Find Stocks with Sales Growth above 25% and filter for a low price to sales ratio to make sure you aren't paying too much for the sales.
So that sounds intriguing. I wonder what low price to sales means. Alright, I'm clicking on it just to see. So yeah, it's scroll down at last close.
It is looking for over $5. It's not saying it's giving me Zex Rank, Growth Score, Value Score, Momentum Score. Okay. So that's a little different than what I was expecting for the sales growth.
So that's not really what I would want. So that's why you do have to click on these to see what's going on with each individual screen sometimes because sometimes it doesn't really say in the description per se, but it may have a secret, like I mentioned, value component in there. Although that one did not look like it did. It was just more of the using the style scores.
It does have some bonus screens on here. So it has broker upgrades, low prices with positive broker rating. That could be interesting. That could be a value type of screen perhaps.
That one says stocks that are within 25% of their 52-week low might be cause for concern, but with solid broker ratings and recent and expected earnings growth, these stocks might be worth a second look. So just cause it's low price doesn't mean it's really a value as we know from this podcast. But I would probably run this one just to kind of see what stocks it was bringing up because we may find some value in there. And then we have broker industry picks and then there's one that's called low beta value.
Well, that has value in the headline and it says these S&P 500 ETF stocks are not only at least half as volatile as the overall S&P 500 ETF, but they also have attractive PE ratios. What does that mean? These S&P 500 ETF stocks. I'm loading the screen just to kind of see.
All right. Well, it has the rank, it has the scores. This is like the same screen. I'm not sure this is giving me what I want.
So hold on, I got to get back in there. I'm just going to run it now. Forget just looking at the screen because that's not getting me anywhere. I have to just run.
Let me see getting back down there, run screen. Okay. No, something is weird with this one. All right.
That's not working. It's giving me 7,612 matches. That's basically the entire ZACS universe. So that is very strange.
Good thing I'm looking at these, right? So I can figure out what's going on with them. I do have to say I did run the classic value with growth that's under the value screen here and it was fine. It ran fine.
So this and it had the components in there that it's supposed to have. So I'm not sure why some of these other ones, but I'm going to take a look at it. As you scroll down to, it gives you this list that's just as predefined basic. I'm not sure if I can get into these, but it gives like a 52 week low, high PE stocks, high peg ratio, high price to cash flow, high yield dividend stocks, and then it gives the low PE stocks gives the same, but on the low side, low peg ratio.
Let's see if this one will run, low peg ratio. It did run and it's giving me 119 matches. It does get a ZACS rank on this one and I'm not signed in to my account. So you could use this.
These are like very basic, but does include a ZACS rank component here. So that's kind of cool. Keep that in mind. A little backdoor way in to get some ZACS rank because mostly these other screens on the premium, which you have to be a member for, those do definitely use this X rank in there.
The one I ran on the basic that was just classic value with growth. That one does not include the ZACS rank, but I did mix it up and I did add it because I can. So I did add it. But first off, I wasn't even looking at any of these screens.
I just wanted some cheap stocks and I was kind of wondering what was out there as we're getting towards the end of earnings season. So the ZACS rank changes a lot during earnings season. And I wanted to know, you know, with all the companies that are pulling guidance, some that are cutting their guidance or outlook or the analysts are going in once the guidance is pulled and they're cutting. The ZACS rank has gone all over the place.
And it's kind of an interesting mix that are the ZACS number one strong buys right now because that means the analysts are raising their earnings estimates. And what stocks is that happening and right now other than the gold miners definitely got some ZACS number ones of those on the list. But what else is on there? And are there any cheap stocks?
So I did a basic screen of P E under 10, the price earnings under 10. And I did the ZACS number one ranks. There's 224 ZACS number one ranks right now when I'm recording this on May 14th. So we're not going to get anything more than 224, but we wanted that P E under 10.
So I ran this basic screen and I got 52 stacks. What was in it? Well, it wasn't all that exciting to be honest, but it was illuminating about what's going on out there right now with the ZACS number one rank. So it was foreign companies and banks and a lot of foreign banks.
And it shouldn't really be surprising the foreign company side because some of them may not have as much exposure to the tariffs, depending on where they're operating and, you know, if any reciprocals are in place and things like that. Yeah, the list was interesting, but I was kind of bored with it. So that's when I switched over to looking at these basic screens that we've been talking about, but I never did screen on just the basic ones that are available to everyone. I did run the classic value with growth.
And what this looks for is a peg under one. That's surprising because that's how you get the growth, the peg ratio price to sales under 1.5. They went a little bit higher. They didn't just do one and under, but it's still cheap if you're under 1.5.
So remember what that means? If it's 1.2, that means you're paying $1.20 for every dollar worth of the sales. But that's pretty low because some of the tech stocks are trading at 10 or 20 or even 30, 30 with the price of sales ratio. So you're paying $30 for every $1 worth of sales.
That's not cheap, right? That's kind of crazy. But you're really buying the growth there if you're paying that much for it. And here we're looking for the cheapness.
So we're only going to pay $1.50 versus $1 here, but that's still cheap. And then it looks for forward PE, but less than 20. So a little bit wider on the forward PE as well, but that's because we got the peg price of sales is all in there. It did look for price to book under two.
I usually look for under three. So that's pretty low. And then it lists for other things, five years of historical EPS growth, this year's estimated growth. So there's a little bit other contingent in this screen.
And I ran this one. It gave me 38 matches. But I secretly do still want this X rank in there to give me even better options than just cheap. I do care if someone is raising the earnings right now or the analysts are raising it on the earnings estimates that says a lot because we know a lot of companies are struggling and going the other way right now.
So who is cheap with all of these metrics? And then also with the rank. So I tried the sex number one rank onto this screen. I can add it on and it gave me just four stacks.
I did think that was a little too low. So I added the number twos just to see how many more am I going to get? And I got another seven stocks were total of 11. So number one is number twos, buys and strong buys.
I only got 11 stocks out of the 224 of the number ones. And then there's a little over 800 if you add in the number twos. So that's pretty good number. I could pick out a couple.
And so I did. But not surprisingly, there were a lot of foreign companies even amongst this list. And right now, that's just maybe the place to be because they're not as exposed to the tariffs depending on what industry they're in. And I picked two kind of intriguing industries that may allow you to avoid some of the tariffs.
So I picked out three stocks. Let's dive into what these are. We have covered at least one of them on prior podcasts many times. So don't be surprised about this first one.
It's Sentine. This is the healthcare company in Missouri. Not surprising that some of these health insurers are on here ticker CNC, CSN Charles, and as a Nancy CSN Charles. PE is just 8.1.
So that's way lower than the 20 we screened for with the peg ratio of 0.7. This one's a number two. They are pretty big market cap of 29 billion. So that's pretty up there.
Sometimes this area, anything in insurance, people are like, oh, that's boring. But a lot of the insurers have done well over the years, especially after the ACA came into fact all those years ago. So revenue for 2025 expected to be up 10%, a decline of 0.4% for 2026, but still a little early for 2026. 2025 earnings, however, just up 1.4% and then another 5% for 2026.
But two estimates are higher in the last 30 days and none have been cut. That's where you get this X number one rank for Sentine. Otherwise, not a lot of growth. It is key to get it cheap.
You are getting it pretty cheap here. So that's wise. But some of these I have bought into some of the health insurers and it's been a bit of a struggle in recent years to see any kind of price appreciation. I'm kind of looking to see what it has done because we've seen some big sell-offs in some of the health insurers, but not in others.
And so this is kind of interesting area right now. It is a way to maybe avoid those tariffs on the health insurer side. So year to date, Sentine is down 1%. This is what I mean.
It's kind of just hanging out. But let's see the five year I have a feeling that's better. No, it's down 13% for the five year. So this is more of a struggle here and that's why it's cheap.
We know value stocks are when the street rejects it, when they don't want to be in it. There's no dividend at all with Sentine either. So really, even though it has this rank, oh, it's not a number one. Sorry, it's a number two.
Number two buy. But even with this rank and nobody's cutting estimates and it might be a place to hang out, it's actually not performed well. Anybody's will have just bought the S&P 500 over that time period, which is up about 100%. So I would not be buying Sentine here even on this cheapness.
It's just not cheap enough and the stock has gone nowhere for five years and down 13% in that time period, but really in a narrow trading range over that time period. So this is why we do the screen so that we can take a look, look a little bit close sir at some of the stocks that come through. And remember, the Zacks rank is a short term recommendation of one to three months. So it's not going to tell you what the long term expectations might be on a company like Sentine.
And so we do have some of that under performance. But I included it anyways. It's a US company and there weren't many on the 11 stocks. So this is Sentine ticker CNC.
Okay, move on to KOPA holdings. We might have talked about this once or twice maybe in the past because I do like the airlines and this is an airline stack. It's not a US airline. It is based out of Panama.
It's big in Panama. It's mean hub and then it flies both North America, Central America and then South America as well. And does have a low cost airline to called Wingo and they have 112 aircraft now. So that's pretty decent size for an airline with dividends and share buybacks.
No, just dividends. It looks like 6.3% on the yield. It's paying out $6.44. I'm not sure how secure that is, but that's a pretty big yield.
How cheap is it? P of just 6.2 peg of .7. It really sold off in the last month on the Liberation Day sell off, but it has rebounded in recent weeks here. And now it's up off those lows, but again, still really cheap year to date.
KOPA's up 17.9%. And so that's pretty impressive because S&P is nowhere close to that. It's trying to be a little bit above break even. But over the last month, let's see what it is.
It is now up 12% in the last month. So that's a nice rebound off of those lows, but we are now getting past when the, some of the Liberation Day reciprocals on like Vietnam, Cambodia, India were paused on the 9th, April 9th, and I'm recording this on May 14th. So we're now well past 30 days from that thing happening. Five years.
The stock has performed pretty well, up 165% in the five year period. That does not include the dividends. The S&P 500 is up about 100% in that time. So it is outperforming.
What is going on with KOPA with the detailed estimates? So we do have some growth. It's got the cheapness. We do have growth, Peg ratio 0.7, and they would just release some April stats.
So they are releasing monthly stats still unavailable seat miles, revenue passenger miles. These are like key metrics for airlines available. Seat miles up 5.2% revenue passenger miles up 5.5. So all of that is working well.
If you're going to Panama and you're in say, Chicago or the West Coast, like Los Angeles, you will probably choose KOPA and just FY, if anyone from KOPA is listening, why do I have to fly back so late from Panama on the flight to Chicago? Why does it get in at like 1230 or 1 AM? That's not good, but just I'm just putting that out there. But Panama is becoming quite a big hub down in Central America and KOPA dominates there.
And it is a co-chair with United and that whole co-chair thing. So earnings expected to be up 12% in 2025 and another 8% in 2026. And all we have are the estimates moving higher. So this one is the number one.
I knew one of them I had chosen out of the four that were number ones. I did include one and it is KOPA. Three estimates are higher in the last seven days because they did just report earnings and it was solid. And so the analysts are up to 1632.
They were at 1561. This is what I want to see. And this is what the Zacks rank will uncover is like some good stories. This is a good story.
I know a lot of people aren't really into the airlines, but an airline that is expanding in an up and coming region can do quite well as long as you don't have a pandemic outside of that. So this one I'm liking a lot. I've always liked KOPA and I didn't even realize you get that big dividend yield. So KOPA, C is in Charles, P is in Paul, is in Andrew, CPA is the number one rank.
It's got double digit earnings growth and a PE of just 6.2. And then I wanted to wrap it up with another foreign company. So that was a foreign company. And this one is a big financial services company in Seoul, South Korea.
And it is KB financial group ticker KB, K as in Kathy and B as in boy. And this one is the one that's doing dividends and buybacks. So very shareholder friendly. And they talk about it on their recent earnings presentation PE of just 6.2 for this one as well.
Again, we screen for PE is less than 20 and it's giving us all three that I chose were less than 10. P of 6.2, peg of 0.5. Dividend is yielding 2.7. So that's pretty nice.
It's not as good as KOPA, but it's pretty nice. And then what do the detailed analysts look or estimates look like on this one? It's a number two and it just reported looks like it did miss, but we only have one estimate on it. And it's for the full year that estimate is higher in the last 30 days.
And they did report, I think, the end of April, but they're not looking for 1067. They were looking for 1040. So they were a little light earnings expected to be up 14.4% this year to the 1067 from 933. That's pretty nice.
We don't really have much on the sales data here. So we only have earnings and only for the full year 2026, another 7.7% earnings growth over there. So you are getting this one pretty cheap and you are getting it with the shareholder friendliness. Now, what about this stock and what has it done?
So year to date, it's now up off of its lows too. And it did plunge down pretty good there during Liberation Day and then now is higher up 18.4% over the last year to date now, over the last month. It's up 25% now really getting a boost over the last month. And over the last year, up 16.1, that's better than COPA, which is down 5.9 over the last year.
And then Centine down 22% over the last year. And then five year pretty impressive, 163% gain over the five year period. COPA again was at 165. So those are neck and neck and then Centine down 13% over the five year period.
And this is not with any dividends reinvested. So interesting little group of companies, ones that you rarely hear talked about except maybe Centine, but the other two COPA and KB Financial Group, I'm sure you've never heard of that one or unlikely unless you travel over to Korea and maybe are using their banking system some way, their ATMs. But these are all intriguing here with the SEX number one, SEX number two. And this was on the basic screen classic value with the growth component.
And this is what I like to see. So these are some interesting stocks. There were another eight stocks in the screen, but these were a few that I felt at least we might have some familiarity with. There were a lot of other foreign names on this list as well.
So again, the stock tickers are Centine CNC, COPA Holdings, which is the airline's CPA and KB Financial Group, KB. Sometimes value isn't all that glamorous, but you're getting it cheap. And in the case of two of these stocks, you are getting dividends and even share buybacks. So what's not to like?
Take a look, keep them on your watch list and run these screens. Go run some of these basic ones. If you can run those that are like the predefined basics that have the ZX rank in there as well, it had several value type of screens in there with that low peg ratio and some of the others. But mess around with these screens and take a look at stocks that are outside of technology, outside of the MAG7.
I'm not saying you should own some of those. We all do, but there are hidden gems often in the value arena. Because right now, there is a lot of value, but we have to watch those earnings and what's happening with lower guidance or estimate cuts. But these estimate increases in the last 30 days.
So be sure to subscribe to get all of our podcasts here. I know many of you are over on ZX podcast channel on YouTube. You can get them there and you can get us on Apple, Spotify, Amazon Music, anywhere you can get the podcast. Be sure to tune in.
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