I find cheap stocks using a systematic process where I feed fundamentals of thousands of stocks into several quantitative algorithms. One of these algorithms is my implementation of the Quantitative Value strategy by Wesley Gray and Tobias Carlisle. This strategy finds stocks with a low EV/EBIT and other good fundamentals computed over the last 8 years and a good score on Financial Strength, which is an improvement of the better known Piotroski score. One of these stocks is The Cato Corporation (CATO).
The Cato Corporation is a retailer of relatively cheap fashion