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 ...