3 Deep Value Stocks With Price Momentum
Scott’s Investments submits:
With the overall stock market’s return over the past year, deep value stocks with positive long-term price momentum have seemingly become extinct. While hundreds, if not thousands, of stocks were considered attractively valued at the March low in 2009, upward price momentum has priced out much of that value over the past year. Using Finviz.com, I searched for value stocks that traded at a 52 week high as of Friday, March 19th. The criteria to identify stocks are below:
- Traded (not necessarily closing) at 52 Week High on Friday March 19th
- Price/Book < 1
- Total Debt/Equity < 1
- Positive Return on Assets
- Positive Return on Equity
- Positive Return on Investment
- Market Cap > $100 million
Three stocks met this criteria last Friday. This is not necessarily the only or best way to search for value stocks. An investor could look for "beaten down" stocks that have had poor recent price performance in order to find value, which is typically the most common method for searching for value. The point of this search is to find value stocks which have shown strong price momentum but may not yet be fully valued.
Investing, Long Term Investment, stock market | admin March 22, 2010
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