Click here to close now.




















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
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...