For Immediate Release
Chicago, IL – November 15, 2019 – Zacks Value Trader 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:
When Is a Stock Truly a Value?
Welcome to Episode #165 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Some popular value stocks now seem pretty pricey. But are they?
Look at Apple (AAPL). It’s now trading at all-time highs, up 68% year-to-date, but it is also trading at its most expensive P/E over the last 10 years. It now trades with a forward P/E of 19.9.
Are its earnings and revenues worth paying that price?
The stock was its cheapest in 2013 when its forward P/E was between 8.9 and 12.8. Even when Warren Buffett bought in 2016, the shares were trading at 9.9 to 13.9x.
Are the Cyclicals Finally Cheap?
1. Micron (MU) is not “cheap.” It’s trading at 19x. But in 2016, it traded at 105x before earnings started rising dramatically. Have the earnings bottomed again?
2. NVIDIA (NVDA) is now trading at 39x but when earnings were soaring in 2017 it traded as high as 59x. Does that make it a bargain?
3. United Rentals (URI) is already cheap, trading with a forward P/E of 8. Revenues and earnings are expected to rise by the double digits this year. In 2010, it traded with a forward P/E of 70 as earnings collapsed following the recession.
4. H&E Equipment (HEES) is also an equipment rental company which is trading at 14x. It’s expected to see double digit earnings growth this year. But has peak cycle already happened?
What else do value investors need to know about investing in the cyclicals?
Listen to this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Zacks Investment Research
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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.
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United Rentals, Inc. (URI): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
H&E Equipment Services, Inc. (HEES): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Micron Technology, Inc. (MU): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.