Want to Pick a Value Stock?
This is one of the first things I learned as a financial analyst.
The style is very buffet-esque. Basically just looking for really cheap stocks.
Here’s what you do…
Go here: Yahoo! Finance Stock Screener
Now input the following…
Operating Margins <= 20%
Return on Equity <= 15%
P/E <=15
Book Value <=2
When you find some stuff, make sure it has a EV/EBITDA ranking of under 10. Revenue and Earnings growth is always nice too. And Never discount a healthy dividend.
Of course, make sure to research the companies this screener pulls up. A lot of times companies are in value territory because they are doing horribly. So make sure you can tell the difference.