Welcome!

News Feed Item

Zacks Investment Ideas feature highlights: Packaging Corporation of America, Tower International and Pacific Drilling

CHICAGO, Jan. 3, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Packaging Corporation of America (NYSE:PKG-Free Report), Tower International, Inc. (NYSE:TOWR-Free Report) and Pacific Drilling S.A. (NYSE:PACD-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

3 Best Bargain Stocks for 2014

With stocks having their best year since the mid-1990s, you might think that there's few stocks left that are truly a bargain.

Valuations trended higher throughout 2013 even as earnings rose. The S&P 500 is trading with a forward P/E of 16 which isn't exactly "cheap."

But even in a hot market, there are always stocks that are left behind. Some are ignored by investors because there is business trouble brewing at that particular company so they stay away. Others are in an out of favor industry or sector.

No matter the reason, a new year is always a good time to poke around in the bargain bin looking for deals. You might have to sort through a bunch of companies that aren't pretty to find the gems, but they are there.

What's a Bargain?

According to Dictonary.com, "bargain" is defined as: "an advantageous purchase, especially one acquired at less than the usual cost."

To be a "stock bargain", I looked for stocks trading with a forward P/E (that's looking at future earnings) under the average of the S&P 500, which would be stocks with P/Es under 16.

If it has a cheap price-to-sales ratio or price-to-book ratio, even better. I consider "cheap" to be a P/S under 1.0 and a P/B under 3.0.

I also only looked at Zacks Rank #1 (Strong Buy) stocks. Because, after all, why not buy companies where earnings estimates are rising into 2014? We want to own companies that are growing their earnings.

The 3 Best Bargains for 2014

1. Packaging Corporation
2. Tower International
3. Pacific Drilling

1. Packaging Corporation of America (NYSE:PKG-Free Report)

Packaging Corporation makes container board and other packaging products. The container board market hit a rough patch this fall as inventories rose, volumes flattened and prices looked ready to decline in November and December. The fourth quarter of the year is the seasonally slow period but this year was expected to be more difficult than normal.

However, November demand rebounded from October's decline. The container board companies also remained disciplined as inventories fell, a good sign heading into 2014. The analysts now believe that by maintaining production levels , the container board companies are keeping inventories under control. With inventories lean, that means they have pricing power.

After fears gripped the market in the fall that price declines were coming, prices remained flat in November and are expected to remain flat again in December.

Where's the bargain?

Forward P/E = 14.9

Earnings expected to grow 37% in 2014

Zacks Rank #1 (Strong Buy)

2. Tower International, Inc. (NYSE:TOWR-Free Report)

Tower is a Michigan-based auto parts manufacturer. It makes the frames and other chassis structures as well as welded assemblies for small and large cars, crossovers, pickups and SUVs for auto companies around the globe.

The auto sector both in North America and globally, has seen sales move higher the last few years. Analysts expect more of that in 2014. Yet investors haven't shown Tower much love. Shares have been flat since the summer but are dirt cheap.

Where's the bargain?

Forward P/E = 7.7

P/S = 0.2

Earnings expected to grow 24% in 2014

Zacks Rank #1 (Strong Buy)

3. Pacific Drilling S.A. (NYSE:PACD-Free Report)

Pacific Drilling is a Luxembourg headquartered ultra-deepwater drilling services provider. It operates 8 ultra-deepwater drillships. Analysts consider it to be one of the most technologically advanced of the drillers which is highly prized by the international oil companies.

The analysts expect demand for its rigs to remain strong into the future as the offshore drilling cycle has only recently revved up.

Energy has been ignored by investors. Because of that, some of the best bargains in the stock market are found in that sector.

Where's the bargain?

Forward P/E = 14
P/B = 1.1

Earnings expected to grow 101% in 2014

Zacks Rank #1 (Strong Buy)

Bargains DO Exist

When the stock market is red hot, don't get discouraged. There are ALWAYS stocks that are on sale. You just have to know where to look to find the bargains.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on PKG – FREE

Get the full Report on TOWR – FREE

Get the full Report on PACD – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...