3 Best Value Stock to Buy in April

NASDAQ: IMKTA | Ingles Markets Inc. Cl A News, Ratings, and Charts

IMKTA – Despite the likely aggressive interest rate hikes to control the surging inflation, value stocks with impressive financials are expected to deliver solid returns in the near term. Hence, it could be wise to add quality value stocks Ingles Markets (IMKTA), Heritage-Crystal Clean (HCCI), and ARC Document Solutions (ARC) to your portfolio.

Surging inflation, Russia’s invasion of Ukraine, soaring crude oil and natural gas prices, and the possibility of aggressive interest rate hikes by the Federal Reserve caused significant volatility for most of the first quarter.  However,  the stock market staged a recovery over the past few weeks.

In March, after increasing the interest rates for the first time in more than three years, the Federal Reserve has forecasted raising interest rates throughout 2022, to control the multi-decade high inflation. Investors generally prefer value stocks over growth stocks in an inflationary environment. The major market indexes seem to have factored in all the adverse developments that had resulted in the volatility, so when the market rebounds, value stocks are expected to bounce back. Investors’ interest in value stocks is evident from the Vanguard Value ETF’s (VTV) 1% returns year-to-date, compared to the S&P 500’s 4% loss.

That’s why today we’re highlighting 3 exciting stocks from our Top 10 Value screen, which is just 1 of the 10 screens in our POWR Screens 10 service (more on that below).  We believe fundamentally sound stocks Ingles Markets, Incorporated (IMKTA - Get Rating), Heritage-Crystal Clean, Inc (HCCI - Get Rating), and ARC Document Solutions, Inc. (ARC - Get Rating), which are currently trading at a discount to their peers, are worthwhile investments now.

Ingles Markets, Inc. (IMKTA - Get Rating)

IMKTA is a supermarket chain in the southeast United States. The company’s supermarkets offer customers a range of nationally advertised food products, including grocery and meat. Non-food products include fuel centers, pharmacies, health/beauty/cosmetic products, general merchandise, and private label items.

IMKTA’s net sales increased 16.9% year-over-year to $1.39 billion for the first quarter ended December 25, 2021. The company’s net income increased 23% year-over-year to $66.18 million. Also, its EPS came in at $3.48, representing an increase of 30.8% year-over-year.

In terms of trailing-12-month EV/S and P/S, IMKTA’s 0.42x and 0.33x are lower than the industry averages of 1.81x and 1.35x, respectively. Also, its trailing-12-month P/B of 1.62x is 44.4% lower than the 2.91x industry average.

Analysts expect IMKTA’s EPS to grow 14.5% over the next five years. Over the past nine months, the stock has gained 52.5% to close the last trading session at $89.36.

IMKTA’s POWR Ratings reflect solid prospects. The company has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has an A grade for Value and a B grade for Growth, Stability, and Quality. It is ranked #3 out of 39 stocks in the A-rated Grocery/Big Box Retailers. Click here to see the other ratings of IMKTA for Momentum and Sentiment.

Heritage-Crystal Clean, Inc. (HCCI - Get Rating)

HCCI provides full-service parts cleaning, containerized waste management, used oil collection, wastewater vacuum services, antifreeze recycling, field services, and owns and operates a used oil re-refinery. The company has two segments. The Environmental Services segment consists of full-service parts cleaning, wastewater vacuum, antifreeze, and field services. The Oil Business segment consists of used oil collection, re-refining activities, oil filter removal, etc.

On September 30, 2021, HCCI acquired Denver, CO, based on AET Environmental. HCCI President and CEO Brian Recatto said, “Their tremendous amount of technical experience and capabilities has been critical to their long-term success, and we will lean on their expertise as we continue to expand our technical and field services capabilities across the company.”

For the fiscal fourth quarter ended January 1, 2022, HCCI’s total revenues increased 28.3% year-over-year to $169.50 million. The company’s adjusted EBITDA increased 88.9% year-over-year to $35.69 million. Also, its adjusted net earnings grew 177.2% year-over-year to $18.69 million. In addition, its adjusted EPS came in at $0.79, representing an increase of 172.4% year-over-year.

In terms of forward EV/S and P/S, HCCI’s 1.37x and 1.32x are lower than the industry averages of 1.74x and 1.38x, respectively. Moreover, its forward EV/EBITDA of 7.56x is 30.9% lower than the industry average of 10.94x.

For fiscal 2022, HCCI’s revenue is expected to increase 6.3% year-over-year to $547.77 million. Its EPS is expected to grow 15% per annum over the next five years. Over the past month, the stock has gained 7.1% to close the last trading session at $29.77.

HCCI’s POWR Ratings reflect solid prospects. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

It has an A grade for Value and a B grade for Stability, Sentiment, and Quality. Within the A-rated Waste Disposal industry, it is ranked first out of 17 stocks. To see the other ratings of HCCI for Growth and Momentum, click here.

ARC Document Solutions, Inc. (ARC - Get Rating)

ARC is a digital printing company that provides digital printing and document-related services to customers in various industries. Its primary services include digital printing of general and specialized business documents such as those found in marketing and advertising, engineering and construction, and other industries.

For the fiscal fourth quarter ended December 31, 2021, ARC’s net sales increased 7.6% year-over-year to $69.24 million. The company’s adjusted net income increased 170% year-over-year to $2.71 million. Also, its adjusted EBITDA increased 1.9% year-over-year to $10.38 million. In addition, its adjusted EPS came in at $0.06, representing an increase of 200% year-over-year.

In terms of trailing-12-month EV/S and P/S, ARC’s 0.85x and 0.60x are lower than the industry averages of 1.93x and 1.50x, respectively. Also, its trailing-12-month P/B of 1.09x is 59% lower than the 2.67x industry average.

For fiscal 2022, ARC’s EPS and revenue are expected to increase 36.4% and 5.8% year-over-year to $0.30 and $288.03 million, respectively. Over the past nine months, the stock has gained 79.5% to close the last trading session at $3.86.

ARC’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

It has an A grade for Value, Sentiment, and Quality and a B grade for Growth. Within the B-rated Outsourcing – Business Services industry, it is ranked first out of 44 stocks. To see the other ratings of ARC for Momentum and Stability, click here.

 Want more stocks like these?

These three stocks are just a fraction of what you will find in our coveted Top 10 Value strategy. And the value strategy is just a fraction of what you get with our popular service; POWR Screens 10.

POWR Screens provides 10 market beating strategies with exactly 10 stocks each. Truly something for every investor with verified performance.

Learn More About POWR Screens 10 >>

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


IMKTA shares were trading at $89.27 per share on Monday morning, down $0.09 (-0.10%). Year-to-date, IMKTA has gained 3.59%, versus a -3.90% rise in the benchmark S&P 500 index during the same period.


About the Author: Dipanjan Banchur


Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
IMKTAGet RatingGet RatingGet Rating
HCCIGet RatingGet RatingGet Rating
ARCGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More Ingles Markets Inc. Cl A (IMKTA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All IMKTA News