With markets remarkably resilient in the face of continued euro region troubles, an anemic US economic recovery and growing concerns of a crash in China, investors may want to consider deep value stocks for possible investment. While cheap stocks can always get cheaper, true value stocks (as opposed to value traps) will probably fall less than the average equity due to already depressed valuations. But if purchased at low enough prices, the possibility also exists that the stock could go up even if the broader market is struggling. As discussed in my 2011 portfolio performance review, all of my new buys in 2011 posted gains for my portfolio even as they registered losses for the whole year due to my purchases near bottoms.
Hence, I ran Zack’s deep value screen, which includes the following criteria: