Hunting for Black Friday Bargains

Value investors have had a rough go of it lately. Over the last year, Vanguard’s Value ETF (VTV) has under-performed the S&P 500 by over 5%. Several value investing gurus such as David Einhorn have expressed frustration with the current environment.

As we know, investing styles are cyclical. Value in particular is known to experience long periods of under-performance–clearly we’re in the middle of one now.

In the spirit of Black Friday, we though we’d zero in on potential bargains using our Pure Value Screener. Our Pure Value Screener utilizes a composite approach as discussed by academics Siva Nathan and Kumar Sivakumar in their paper, “Returns to Trading Strategies Based on Price-to-Earnings and Price-to-Sales Ratios”, and further developed by Wall St. legend James O’Shaughnessy. In a nutshell, we smash together several valuation ratios to produce a master “Value Rank”.

Let’s take a look:

Value RankName
1Discovery Communications Inc 
2Bed Bath & Beyond Inc 
3Mallinckrodt Plc 
4Macy's Inc 
5Kohls Corp 
6Goodyear Tire & Rubber Co 
7HCA Holdings Inc 
8Viacom Inc 
9Under Armour Inc 
10United Continental Holdings Inc 
11Molson Coors Brewing Co 
12Foot Locker Inc 
13LKQ Corp 
14McKesson Corp 
15Newell Brands Inc 
16Xerox Corp 
17Prudential Financial Inc 
18Entergy Corp 
19Express Scripts Holding Co 
20General Motors Co 
21Range Resources Corp 
22Travelers Companies Inc 
23Archer Daniels Midland Co 
24HP Inc 
25CVS Health Corp 
26AutoNation Inc 
27Aflac Inc 
28Delta Air Lines Inc 
29Principal Financial Group Inc 
The data and information contained herein is not intended to be investment or tax advice. A reference to a particular investment or security, a credit rating, or any observation concerning a security or investment provided on is not a recommendation to buy, sell, or hold such investment or security or to make any other investment decisions. The author of this article may own the securities mentioned in this article directly or indirectly via ETFs and/or other financial products or may initiate positions within the next 72 hours. The author does not have any business relationships with any of the companies mentioned in this article. Please see our Privacy Policy and Terms of Use.

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