It's Time to Buy this Value Stock Before the Next Crash

It is getting harder and harder to find solid value plays in today's market. The current bull market rally, now in its 7th year, has recently gone through a sharp rise, bringing many otherwise solid companies into "expensive" territory. Getting caught with too many overvalued stocks in one's portfolio during a market correction can be a very painful experience. They tend to be the stocks that fall the farthest and the fastest.

It is always a good idea to diversify money into solid value plays, and especially a good idea when the markets are overreaching and overdue a correction. While there are fewer value stocks to choose from these days, the few that are available really stand out. My proprietary "smallcap value system" scan has uncovered a real beauty for you to consider.

At a market cap of $1.5B, with 6655 employees and 28 distribution centers throughout the US and Canada, Core-Mark (CORE) is the largest distributor of food and marketing products to the convenience store market. The company has also carved out a unique niche among the "fresh" and "farm to market" suppliers. Their unique delivery systems and on-site technology mark them as perfectly positioned to capture a large share of the growing higher-end convenience store market.

Shares of Core-Mark (Nasdaq: CORE) trade at a miniscule 0.11x sales revenues, and a reasonable 29x current earnings. It's price to book is under 3 and forward earnings are projected at 20% above current levels. The company has shown organic growth in each of the past 5 years and recent sales growth above 30% quarter on quarter. All analysts rate the stock a buy or better with an average price target of $49.00, nearly 50% higher than the current price. Shares also pay $0.33 per share.

The chart as seen below shows a base being formed at price price support, and above expected trend levels, suggesting a possible change in trend forming. This is not the kind of stock you would want to trade. It is a better play as a long term addition to your portfolio as a hedge against a market downturn.

Posted to Dr. Stoxx Options Letter on Feb 16, 2017 — 12:02 PM
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  • {[]} — Marketfy Staff — Maven — Member
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