New Constructs' Most Attractive Stocks for June
New Constructs is out with its Most Attractive Stocks for June report, with 14 new stocks for this month. For those who don't know, New Constructs specializes in earnings quality analysis and ranks stocks based on these quality of earnings and traditional valuations. They only highlight stocks with the highest quality earnings and cheap valuations, based on free-cash-flow yields, price-to-intrinsic value, and growth potential.
The firm has two lists, one for large and mid cap stocks, and one for small cap stocks. In the large/mid space, they add: Sotheby's (NYSE: BID), Check Point Software (NASDAQ: CHKP), Dell (NASDAQ: DELL), Eaton Vance (NYSE: EV), Kla-Tencor (NASDAQ: KLAC), Southern Copper (NYSE: SCCO), and Varian Medical Systems (NYSE: VAR).
There are also seven new stocks on the small cap list, on top of the seven new stocks on the large cap list. The new small cap stocks are: American Public Education (NASDAQ: APEI), Amtech Systems (NASDAQ: ASYS), Cabot Microelectronics (NASDAQ: CCMP), Depomed (NASDAQ: DEPO), Sauer-Danfoss Inc (NYSE: SHS), World Acceptance Corp. (NASDAQ: WRLD), and Zebra Technologies (NASDAQ: ZBRA).
Overall, most of the new stocks were added due to large price drops, making them attractive on a valuation basis. One stock, WRLD, was upgraded in response to a new filing. However, some analysts claim that yes, valuations are getting cheaper as the market sells off, but it is plausible that valuations could get even cheaper, so investors should do their own due diligence and only invest when fully confident.
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