Brian Bolan is the Aggressive Growth Stock Strategist and he has two more names for your aggressive growth stock radar screen. This time he notes that he has two value stocks masquerading as growth stocks.
The first name that Brian covers is The Andersons ANDE. Brian notes right away that the Zacks Style Scores in these videos usually has a growth divergence, meaning a strong growth score and a weak value score. This is not the case for The Andersons ANDE as it has A’s for both.
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ANDE has a good earnings history but is not showing too much growth. Brian underscores the revenue projections and how it is hard to move the needle when sales are already coming at $17B to $18B per year.
The real story here seems to be to the price to book multiple which is just below 1x. That means investors are buying the company for the value of the assets on the books. Be sure to watch the video to see how Brian describes this metric and how it pertains to growth investors.
The next stock on the list today is Vaalco Energy EGY. This stock seems to have a Value divergence when it comes to the Zacks Style Scores… and Brian notes that his screener might be off a little bit.
The story with Vaalco Energy is that is too looks like a great value play but could easily be a growth name if the price of oil pops back higher and the company is able to expand its margins.