This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Best Stocks by Metrics

NEW YORK ( TheStreet) - Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics.

The result is a list of attractive value stocks for additional research. Here are the top 10 in each of the three metrics listed above:

Dividend Yield

Dividend yield is a favorite metric for income investors, providing both steady, predictable returns and downside protection. With Magic Formula Investing, you are also buying dividend stocks that are both cheap against earnings and represent a company that efficiently invests capital.

The Top 10 Magic Formula highest dividend yield stocks (forward yield) right now are: (1) 7.0% - EarthLink Inc (ELNK - Get Report); (2) 6.4% - Altria Group (MO - Get Report); (3) 6.1% - Reynolds American (RAI - Get Report); (4) 5.9% - United Online (UNTD - Get Report); (5) 5.6% - Value Line (VALU - Get Report); (6) 5.5% - Lorillard (LO); (7) 4.7% - Garmin (GRMN); (8) 4.6% - H&R Block (HRB - Get Report); (9) 4.5% - Deluxe Corp (DLX - Get Report); (10) 4.3% - Lockheed Martin (LMT).

Price-to-Sales Ratio

Using the price-to-sales ratio was a tactic shown to be highly successful by such guru investors as Ken Fisher in Super Stocks and by James O'Shaughnessy in What Works on Wall Street.

The Top 10 Magic Formula stocks with lowest price-to-sales ratios are: (1) 0.11 - AmerisourceBergen (ABC); (2) 0.15 - McKesson (MCK); (3) 0.16 - Eastman Kodak (EK); (4) 0.24 - Unisys (UIS); (5) 0.26 - Providence Service (PRSC); (6) 0.29 - Oshkosh (OSK); (7) 0.35 - GameStop (GME); (8) 0.36 - EMCOR Group (EME); (9) 0.46 - Dell (DELL); (10) 0.49 - Amedisys (AMED).

Price-to-Book Ratio

Finally, the price-to-book ratio is often considered the "classic" test of value investing: Are you buying a company at or less than the net value of its assets? Price-to-book ratio was a favorite of the "father" of value investing, Ben Graham.

The top 10 Magic Formula stocks with lowest price-to-book ratio are: (1) 0.51 - Jiangbo Pharmaceuticals (JGBO); (2) 0.92 - Amedisys (AMED); (3) 1.03 - Time Warner (TWX); (4) 1.17 - GameStop (GME); (5) 1.21 - AOL (AOL); (6) 1.25 - Comtech Telecommunications (CMTL); (7) 1.26 - Argan (AGX); (8) 1.27 - EarthLink (ELNK - Get Report); (9) 1.29 - Motorcar Parts of America (MPAA); (10) 1.31 - United Online (UNTD - Get Report).
At the time of publication, Alexander owned GameStop. This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LO $0.00 0.00%
ELNK $5.28 -0.66%
DLX $52.08 -0.84%
HRB $33.16 -2.50%
MO $59.98 -0.12%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs