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11:52 November 3rd, 2006

Value stock ideas for the cautious types

Posted by: Marc Gerstein
Tags: Uncategorized

We haven’t heard much this year about those studies that purport to show September and/or October are terrible months for the market. Obviously, things didn’t work that way this year. Come to think of it, August was pretty good too.

So what’s ahead: A correction? A breather? More of the same? We’re worried about corporate profits because of economic data suggesting U.S. economic activity might be slowing. On the other hand, there’s concern the Federal Reserve can’t slash interest rates as aggressively as some might wish because of still-strong jobs data.

Add those macro concerns, you have good reason to be cautions on equities, at least for the near term. Yet there’s a difference between caution and avoidance. Those who still want equity exposure at times like these might consider value stocks, which tend to be less volatile on the downside. That’s been the experience over the years with our value-category Reuters Select stock screens.

Accordingly, we present below a listing of the top ten stocks that appear presently in the Reuters Select value screens. (Click here for an explanation of how we rank the stocks on the overall list.)

Top-ranked Reuters Select value stocks
Company Screen(s) Market
Cap. ($ mill.)
Sonic Solutions (SNIC) Favored Value Plays,
Relative Values,
Operating Margins
403.80
Hardware and software authoring solutions for creating packaged media releases in DVD-Video, DVD-read only memory, as well as HD DVD and BD next-generation, high-definition and high-density disc formats.
MEDTOX Scientific (MTOX) Favored Value Plays,
Consensus Choices
97.86
Forensic toxicology (primarily laboratory testing for identification of drugs-of-abuse), providing these services to private and public companies, drug treatment counseling centers, occupational health clinics and hospitals, as well as third-party administrators.
NCI, INC. (NCIT) Favored Value Plays,
Consensus Choices
169.53
Provides information technology services and solutions to federal government agencies across four core service offerings: network engineering; information assurance; systems development and integration; and enterprise systems management.
Coach, Inc. (COH) Sales Growth Leaders,
GARP
14521.09
Luxury lifestyle consumer accessories: handbags, women’s and men’s accessories, outerwear, business, travel, watches, footwear and eyewear.
Watson Wyatt Worldwide (WW) Favored Value Plays,
Consensus Choices
1857.62
Global consulting firm focusing on providing human capital and financial management consulting services. Helps clients attract, retain and motivate qualified employees.
H.B. Fuller (FUL) Favored Value Plays,
Relative Values
1492.00
Global Adhesives segment supplies industrial and performance adhesives products for applications in various markets, including assembly (woodworking and appliances), converting (packaging, corrugated, tape and label, tissue and towel, and graphic arts), non-woven (disposable diapers, feminine care and adult incontinence products), automotive and footwear. The Full-Valu/Specialty segment supplies products for ceramic tile applications, powder coatings applied to metal surfaces, specialty products and consulting for packaging solutions.
Sonic Automotive (SAH) Favored Value Plays,
Consensus Choices
1098.96
Operates automotive dealership franchises representing 37 different brands of cars and light trucks; also operates collision repair centers.
Team, Inc. (TMI) Accelerating EPS Growth,
GARP,
Consensus Choices
265.81
Provides specialized industrial services, including on-stream leak repair, hot tapping, fugitive emissions control monitoring, field machining, technical bolting, field valve repair, field heat treating and non-destructive testing/examination (NDE) inspection services.
WMS Industries (WMS) Favored Value Plays,
Consensus Choices
1103.53
Manufactures gaming machines and video lottery terminals (VLTs). Gaming operations includes participation games, wide-area progressive jackpot systems (WAP), local-area progressive (LAP) jackpot systems and non-linked, stand-alone gaming machines. Some of its games use licensed brands, such as MONOPOLY, HOLLYWOOD SQUARES MEN IN BLACK, WORLD SERIES OF POKER and POWERBALL.
Newcastle Investment (NCT) Sales Growth Leaders,
Favored Value Plays,
Consensus Choices
1272.92
Invests in real estate securities, loans and other real estate related assets. Company’s real estate securities and loan portfolios are diversified by asset type, industry, location and issuer.

2 comments so far

[...] value stock ideas for the cautious types we haven't heard much this year about those studies that purport to show september and/or october are terrible months for the market. obviously, things didn't work that way this year. come to think of it, august was pretty good too. so …Read more: here [...]

- Posted by Pierres Service » Blog Archive » value stock ideas for the cautious types

[...] Read more: here [...]

- Posted by value stock ideas for the cautious types :: Newstack

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