| | | I have been using the finviz screener, looking for stocks 0-10% above the 52 week lows and PE's <15. There are some stocks popping up, but not many, that I find interesting.
Some sectors with stocks that look like value:
Reits - under pressure from higher interest rates, especially B and C- mall owners, where there is signifiant secular decline risk
Retail stocks - RL, GIL
Pharma - NVO, GILD
GIL is not really cheap and neither is RL. RL probably needs a significant restructuring. NVO is growth darling that has fallen from grace, but still trades at ~15x earning, which is think is fair, but not cheap. One could buy pharma stocks for <10x earnings for quite a long time, when the sector was growth challenged. I think we could get back to this level again, because the sector has been living off significant price increases during the last few years, which are not sustainable.
GILD is cheap based on current earnings, but it looks like earnings are going to fall for a few years going forward. It is difficult to estimate the normalized earnings power, if there even is such a thing. I do think that the market seems to overemphasize the earnings pressures. GILD management team has shown in the past that they are quite astute - maybe they can pull another Hattrick and fatten their pipeline again. |
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