This Week’s Top Value Stocks: (AEO)(BBY)

Looking for the best value stocks? Tracey Ryniec, Stock Strategist at Zacks Investment Research, discusses two stocks that might be worth a closer look by value investors: American Eagle Outfitters, Inc. (AEO) and Best Buy (BBY).

Both companies have forward P/Es well below the average of the S&P 500, which is now a sky-high level of 18. They also are in favor with analysts, as 2015 and 2016 earnings estimates have been moving higher.

American Eagle recently raised its third quarter guidance and is anticipating a strong holiday season. Earnings are expected to rise 67% this year.

Best Buy is a Zacks Rank #1 (Strong Buy). Earnings are forecast to grow 3% this year but 9% next year.

Both companies also pay juicy dividends as well.

But what else should investors take away from these two companies?

American Eagle Outfitters:
Best Buy:

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