Stock ideas in late 2019

Here are 5 stock screens to consider, plus top results for each.

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After the S&P 500 hit 3,000 for the first time ever this past July, US stocks appear to have stalled within a range over the past several months. Earnings growth seems to have plateaued in 2019, relative to prior years, potentially helping to explain the short term sideways trend in stocks.

Despite the slowdown in market momentum, it may still be possible to find opportunities within the market that align with your objectives. If you are seeking new stock ideas, one tool to consider is Fidelity's Stock Screener, which provides preset expert strategies. Here are 5 of the most popular stock screensLog In Required on Fidelity.com, plus top results for each.

Dividend growers

The goal of the Dividend Growers screen from Zacks Investment Research is to find top dividend-paying companies with a history of increasing dividends. The screen also sorts by those recommended buy or hold by Zacks, with double-digit earnings growth rates, attractive multiples, and above median increasing cash flow.

As of October 25, 2019, the full results of this screen are:

  1. Capital Southwest (CSWC)
  2. DCP Midstream (DCP)
  3. Energy Transfer (ET)
  4. Enterprise products Partners (EPD)
  5. Grupo Aeroportuario Del Pacifico (PAC)
  6. MFA Financial (MFA)
  7. Navient (NAVI)
  8. Pembina Pipeline (PBA)

As with any screen, the results should serve as a jumping off point for additional research. Moreover, you should exercise caution when evaluating the results. For example, the screen above includes unit trust funds and depository receipts that carry their own unique risks and characteristics.

High Quality Dividend Payers

The High Quality Dividend Payers screen from Zacks attempts to find high quality companies with dependable, above-market dividend yields. These companies are recommended a buy or hold by Zacks, have above-median market yields, double-digit growth rates, above-median increasing cash flows, and strong balance sheets.

As of October 25, 2019, the full results of this screen are:

  1. Alliance Resource Partners (ARLP)
  2. Antero Midstream (AM)
  3. Capital Southwest (CSWC)
  4. CNX Midstream Partners (CNXM)
  5. Enterprise Products Partners (EPD)
  6. Oaktree Specialty Lending (OCSL)
  7. Oasis Midstream Partners (OMP)
  8. Pembina Pipeline (PBA)
  9. Turkcell Iletisim Hizmet (TKC)

Like the previous screen, several results here are unit trust funds and depository receipts. Additionally, some of the results are small or micro-cap companies. Smaller companies can feature unique characteristics that require you to fully understand their risks and trading features.

Deep Value

The goal of the Deep Value screen from Zacks is to find stocks with deeply discounted valuations. These are stocks that have a Zacks recommendation of buy or hold and are trading below its own historical median valuation on 5 metrics—P/E ratio, PEG ratio, price to sales, price to cash flow, and price to book.

As of October 25, 2019, the full results of this screen are:

  1. Encore Capital Group (ECPG)
  2. JetBlue Airways (JBLU)
  3. Penn National Gaming (PENN)
  4. Propetro Holding (PUMP)

Of course, there can be good reasons for a stock to trade at a deep discount. A company's stock price may be depressed for fundamental reasons that justify its low stock price or, in extreme circumstances, threaten its viability. Exercise caution when evaluating companies whose stock price is deeply depressed.

Income and Growth

The Zacks Income and Growth screen searches for higher-dividend yields and higher earnings growth. It looks for companies with dividend yields over 5%, a history of increasing their dividends over the past 5 years, a historical EPS growth rate above 5%, and are rated either a buy or hold by Zacks.

As of October 25, 2019, the full results of this screen are:

  1. Abbvie (ABBV)
  2. Altrie Group (MO)
  3. China Petroleum & Chemical (SNP)
  4. BNP Paribas (BNPQY)
  5. Simon Property Group (SPG)
  6. Las Vegas Sands (LVS)
  7. Canadian Imperial Bank of Commerce (CM)
  8. Oneok (OKE)
  9. MPLX (MPLX)
  10. Fiat Chrysler (FCAU)

Stocks according to GARP

The strategy known as "Growth at a Reasonable Price," popularized in famed investor Benjamin Graham's 1949 work The Intelligent Investor, utilizes a methodology that is still popular today. The Stocks according to GARP screen from Recognia looks for a 5-year average dividend growth rate greater than 0%, 5-year annualized earnings per share growth of at least 3%, a price-to-book ratio under 1.5, trailing 12-month revenue over $400 million, and a current ratio above 2.

As of October 25, 2019, here are the top 10 results of this screen, sorted by market capitalization:

  1. Nucor (NUE)
  2. Packaging Corp of America (PKG)
  3. Hollyfrontier (HFC)
  4. Snap-On (SNA)
  5. Westlake Chemical (WLK)
  6. Cabot Oil & Gas (COG)
  7. Reliance Steel & Aluminum (RS)
  8. SteelDynamics (STLD)
  9. Ingredion (INGR)
  10. Acuity Brands (AYI)

Dig deeper

With any stock screen strategy, more research is needed to determine if any of these investments are right for. You should fully understand the risks involved, and each investing opportunity should be considered within the context of a well-diversified investment strategy that conforms to your specific time horizon, objectives, and risk parameters.

Next steps to consider

Find new investing ideas and get up-to-the-minute market data.

Learn what you need to know before trading the market.

Learn about more technical indicators and how they can help you trade.

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