For Immediate Release
Chicago, IL - December 29, 2016 - Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/243774/the-biggest-investing-lesson-of-2016 )
The Biggest Investing Lesson of 2016
Welcome to Episode #23 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.
The end of the year is time for reflection and in 2016, there was a lot of reflection an investor could do.
While everything is ending rosy with the indexes hitting new all time highs, the year began with a stock market sell off that was so severe, the first 10 days of January were the worst for the stock market in 100 years.
Sheer terror gripped stock investors to start the year.
January saw the Dow Industrials finish down 5.5% and the NASDAQ fell 8%. The selling continued into February as crude dropped to new multi-year lows of $25 and there were calls that it would go as low as $10.
The small cap stocks were smoked, falling more than 15% in this time period.
It was the end of the world. Or so it seemed.
Did you buy when everyone was selling? Or did you move to the sidelines, too scared to jump in?
The Biggest Lesson of 2016
It's hard to be a value investor. When times get rough, that's when we should get in but fear keeps many of us on the sidelines. Stocks are the one thing that when they go on sale, Americans don't buy them. Instead, they do the opposite.
Most investors can't turn off their emotions and that's okay. But the lesson of 2016 is that we can learn to control our emotions so that when we see buying opportunities, we're able to get in the game.
Because while stocks are hitting record highs right now and everything is blissful, at some point in 2017 we're going to get a stock market pull back. No one knows when it will be or how big it will be. But that will be another buying opportunity. If you learn to concur your fear of not buying on pullbacks, then you'll be ready to take advantage.
Still Value Stocks Out There
While we're waiting for a sell off to bring down valuations, the value investor can still be buying stocks. I've covered many stocks over the last month that were cheap and I'm giving you another set of them now as we head into the new year.
This is a collection of names from different industries but they all have forward P/Es under 15 and price-to-sales ratios under 1.0. I also looked for rising earnings estimates which hopefully will translate into earnings growth in 2017 and beyond.
2. Weight Watchers (NYSE: WTW - Free Report ) is back in the news after Oprah said she lost 40 pounds on the program. January is the big time of the year for the weight loss and fitness industry. I'm making New Year's Resolutions, are you? It trades with a forward P/E of just 12.6.
4. Beazer Homes (NYSE: BZH - Free Report ) is one of the largest home builders in the US. I keep highlighting the home builders because the entire industry is a value as its out of favor with investors. It has a price-to-sales ratio of only 0.3.
5. Aerocentury (NYSEMKT: ACY - Free Report ) leases aircraft to regional airlines. This is a microcap though, with a market cap of just $14 million. Yikes! Be careful. But I include it because analysts are covering it and it's dirt cheap, with a forward P/E of 6.5.
We all make mistakes in investing. The new year gives us an opportunity to learn from what happened the prior year and to, hopefully, do things differently going forward.
Remember what happened to start the year and learn from it.
Find out more about what Tracey thinks about conquering your fear of stock sell offs in this week's podcast.
Happy New Year!
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.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Follow us on Twitter: https://twitter.com/zacksresearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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