Credit: Shutterstock photoWelcome to Episode #3 of the Value Investor Podcast
Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.
This week, Tracey discusses how it's hard to be a value investor in a world that favors the popular growth names like Facebook (FB). While Facebook's fundamentals are strong, it is trading with a forward P/E of 39. It's obviously not a cheap stock.
The stock has paid off for investors. Facebook's shares have soared 286% over the last 5 years.
But you didn't have to be in the high growth names to get great returns over the last few years.
There are lots of good quality companies that are just going about their business all over the United States. Many of those have been great investments over the last five years.
Look beyond Silicon Valley for investments. You'll be surprised what is out there.
Tracey's top 4 boring stock picks:
1. Fortune Brands Home & Security (FBHS) (who???) with a 5-year return of 415%
2. Masco (MAS) with a 5-year gain of 383%
3. Newell Brands (NWL) ties Facebook, up 286% over 5 years
4. Snap-On (SNA) jumped 207% during that time period
Those returns aren't too shabby. And they are all trading with P/Es of half that of Facebook.
Growth stocks aren't the only path to investing success.
Find out why Tracey loves these unknown boring stocks and more on this week's podcast.
Want more insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NEWELL BRANDS (NWL): Free Stock Analysis Report
MASCO (MAS): Free Stock Analysis Report
SNAP-ON INC (SNA): Free Stock Analysis Report
FORTUNE BRD H&S (FBHS): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
