• (0:45) - Lessons To Learn From Benjamin Graham

• (9:20) - Top Stocks To Keep On Your Radar

• (21:00) - Episode Roundup: OXY, DHI, SAFM, MOV, WIRE, ASTE, NTDOY

• Podcast@Zacks.com

 

Welcome to Episode #273 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

The 2022 stock market sell-off hasn’t happened only in growth stocks. Many value stocks have also been hit.

It has created a buying opportunity for value investors with even famed value investor Warren Buffett diving in.

Berkshire Bets on Oil

In the last few weeks, Berkshire Hathaway has bought $7 billion worth of Occidental Petroleum OXY shares.

Occidental shares are up 457% over the last 2 years. They’ve been on fire year-to-date, too, gaining 96%.

Yet Occidental is still cheap, with a PEG ratio of just 0.3 as earnings are expected to soar 93% in 2022.

Buffett has always liked the energy sector and Berkshire Hathaway already has exposure. But this Occidental investment is one of his biggest in several years.

What Would Ben Graham Be Buying in 2022?

But if Buffett is jumping into energy, would his mentor, and famed value investor Benjamin Graham, be doing the same if he were alive in 2022?

Thankfully Ben Graham has left us his investing strategy so we can find out. Zacks Research Wizard has an advanced stock screen, under the guru screens, that will look for Ben Graham stocks.

These are value stocks that pay dividends.

Running that screen, it returns 19 stocks. But, ironically, there are NO energy companies on the list even though Buffett is jumping in.

Ben Graham created the use of the PEG ratio to find value. He loved dirt cheap companies that were growing. Which companies are those in 2022?

4 Ben Graham Stocks in 2022

1.       Sanderson Farms SAFM

Sanderson Farms, the third largest poultry producer in the United States, is dirt cheap in 2022. This Zacks Rank #1 (Strong Buy) trades with a forward P/E of just 5.6.

But the shares haven’t really even sold off. Sanderson Farms shares are down just 5.8% year-to-date and are up 12% over the last year.

Sanderson Farms is expected to grow its earnings by 56% in fiscal 2022

Should value investors be looking at Sanderson Farms?

2.       Movado Group, Inc. MOV

Movado, the luxury watch maker, has seen a big turnaround in earnings in fiscal 2022. Earnings are expected to rise 270% to $3.41 from just $0.92 in the pandemic-hit 2020.

However, Movado hasn’t yet reported fourth quarter results, its holiday quarter.