10 Standout Growth and Value Stocks

"Growth Investors focus on companies with exceptional earnings growth, but many investors are simply not willing to pay excessive multiples for those earnings. Value Investors tend to focus on low P/E stocks, but many low P/E stocks have low P/E's because they lack any real earnings power. This screen combines the best of both worlds by finding companies with the largest growth rates while simultaneously having the lowest P/E's. First, the Universe of stocks is narrowed down to only those companies with a Zacks Buy Recommendation. Then, it searches for companies that have the best 5 Year Historical Growth Rates (higher than 80% of all the other stocks with a Zacks Buy Recommendation) while also having the lowest P/E ratios (lower than 80% of all the other stocks with a Zacks Buy Recommendation). Additionally, those companies also have to be trading over $5 and have a 10 Day Average Share Volume of 50,000 shares or more. This is a powerful screen and helps find strong companies at great values."

With screening parameters from Zacks, and Fidelity's stock screener, here are the ten top Something for Everyone stocks, listed in order of their relative rankings.

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Comments

[Alphameister:]

Not surprising that your screen for a combination of growth and value turned into a portfolio of energy stocks. I have always rejected the idea that growth and value are two distinct categories. To my value-oriented mind, superior growth is among the most valuable characteristics in a company and its stock as long as it is reasonably priced.

Feb 08 09:49 AM

[J. T. Atkins:]

Thanks for the list. Will check them out.

Feb 08 10:19 AM

[ain't no fo...:]

These are all resources stocks, and tied to the $USD. There are dozens and dozens of similar stocks with the same 3 and 4 month flat and inverse head and shoulders bottoms forming sound bases as market volatility subsides. When the market makes its final bottom these stocks will lead the way. Not sure we don't have one more big shakeout coming after this bear rally we are starting to see, but these stocks, techs and early cycle industrials, especially those with large exports to the emerging markets, will be the big early winners.

Feb 08 10:52 AM

[Marc Michel:]

This list makes a critical mistake, that past growth rates will continue into the future. Most of the companies on this list hail from the energy industry where oil prices went from $35 at the start of the Iraq War to $150 in the middle of last year. That is what drove the revenue and profit growth of these companies. Since then oil prices have dropped backed to $40 per barrel. If you believe we will go through the same price pattern in the future, then this list will probably yeild terrific returns. I am skeptical that oil prices will soon return to their past glory in a period of global economic recession and deflation. While I subscribe to the growth at a reasonable price school of investing, I think it better to look at growth companies where one can reasonably count on the growth to continue because of structural issues rather than cyclical ones. An example of this would be Mastercard or Visa because there is a fundamental switch going on between paying for goods and services with plastic instead of cash and that developing countries are just in their infancy in the use of credit and debit cards. (Full disclosure - I own shares of Mastercard). Yet, Mastercard's stock has fallen from the low 300's to about $150 today despite strong growth and trades at a reasonable multiple now. This is just one example, others would include Lab Corp, CoStar Group, Medco, Lender Processing among many others. The key is whether it is reasonable to expect the growth to continue in the future.

Feb 08 11:00 AM

[FRANKLIN32:]

Good insight and realize these high flyers were hard hit and came down hard and fast. Now if we could see some of these pay div. then you really have my attention. Thanks for your insight...

Feb 08 11:35 AM

[Cesar Valencia:]

CF and Agrium might be worth digging into. But the drillers and oil companies are a thing of the past. If the world slows down or doesn't grow significantly, oil demand won't grow, putting downward pressure on oil prices. Low oil prices leads to oil companies shutting down projects. No projects = no drilling, no drilling = no business for drillers. This is a list of the past.

Feb 08 11:50 AM

[Jolly_Rancher:]

Value investors don't look at PE AT ALL! Value investors use Net Present Value (i.e. the discounting of future cash flows) or the liquidation value. I think it may have been more productive to analyze the liquidation of these energy companies. Reserves may be more valuable than the market cap, esp to a large cash flush energy company whose reserves have been in decline - like XOM.

Feb 08 12:52 PM

[Nick Waddell:]

I agree with Jolly Rancher on this one...

Feb 08 03:07 PM

[DownHillFro...:]

Bought it at .36!!! Was a little nervous going into earnings report but glad I hung on.


On Feb 08 12:15 PM stem cell A wrote:

> Buy the best stock at the worst market...
>
> TECH is out, Bio-Tech is in, especially stem cell therapy
> Thermogenesis (seekingalpha.com/symbo...), reported an
> excellent q2 and guidance, on the way to become the 1st profitable
> stem cell company from operation.
>
> Stock is under institution radar and extremely under-valued but could
> jump any time.
>
> A 10 bagger in a year? very likely...do your dd like you own the
> company.

Feb 08 06:43 PM

[TopViet:]

Yeah! CVX

Feb 09 01:32 AM

[User325602:]

Nice article and well thought out responses! The best of the bunch going forward:: CHK PDE NOV
The worst..... MRO

happy investing---

Feb 09 01:38 AM

[PeteK:]

Cesar,
Demand for oil & gas may slow down a bit, but will not for long.
The way we drive, heat our homes, pools, and many industrial usage,
plus the population growth, more and more oil & gas will be used.
Especially natural gas, 99% of buildings and homes are hooked up to gas lines. Restaurants, power generations, etc etc all need natural gas.
What more proof you want ? They won't sell gas below cost. They always get the upper hands.

Feb 09 04:54 AM

[Stone Fox C...:]

Nice article but it really needs to focus on future growth and forecasted PE. Doesn't really matter what happened last year or the last 5 years if growth is declining. Its all about the future!

For example, CHK has a '09 PE around 9 if the avg analyst estimate of $2.22 is accurate. Could actually be alot lower so the screen is not accurate.

Feb 09 04:46 PM

[Alex Salkever:]

I'm kinda surprised that all the oil services names are on there. They are potential value traps at this point -- with global demand plunging, its hard to imagine oil prices going up much so the services guys will be squeezed. Granted, their stocks have been hammered but it could well get worse.

Feb 10 05:39 PM