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MARKETS LIVE BLOG:

STOCKS SHED GAINS, TESLA SURGES DAY AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

Zacks Value Trader Highlights: Apple, Amazon, Aflac, Synchrony and Cimarex

Zacks Equity Research

For Immediate Release

Chicago, IL – July 26, 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:

(https://www.zacks.com/stock/news/449797/value-stocks-a-onceinadecade-buying-opportunity)

Value Stocks: A “Once in a Decade” Buying Opportunity?

Welcome to Episode #151 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.

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It’s tough being a value investor in 2019.

Bloomberg recently had an article called “Value stocks haven’t traded this low since the dot-com bubble” which laid out all the horrors, including that value stocks, compared to the growth stocks in the developed markets, are now at 19-year lows.

Additionally, Bank of America recently surveyed a bunch of money managers and just 2% believed value stocks would out perform in the next 12 months. It’s the lowest reading for value since 2010.

JPMorgan strategists recently said that they believe these conditions are a “once-in-a-decade” opportunity.

What’s a Value Investor to Do?

Should they throw in the towel like Berkshire Hathaway?

Sure, Buffett owns Apple AAPL, which he bought as a true value stock back in 2016.

But his lieutenants recently bought Amazon AMZN, which could be interpreted as a sure sign that value investors must buy some growth names in order to keep up.

Top Tips for Value Investors

1.       Have patience. The trade probably isn’t going to show fruition for months or longer. Look at Aflac AFL. Those shares went nowhere in 2015 and part of 2016 but they were cheap. Finally, they broke out and, over the past 3 years, have made new highs.

2.       Buy dirt cheap stocks, not just cheap stocks. Buying at 11x earnings, while cheap, might not cut it anymore. It has to be oversold now. Look for a stock where you just shake your head and say, “that’s absurd.” They ARE out there. In 2018, Synchrony Financial SYF traded with a forward P/E in the 7s and a dividend yield over 3%. It was dirt cheap. It has since rebounded 55% in 2019.

3.       Buy the hated sectors. It’s hard, for sure. But look at energy. Some of the E&Ps, like Cimarex Energy XEC have low P/Es and pay dividends. Cimarex has a dividend yield of 1.6%. Year-to-date, shares are down another 18%. You have to have a really strong stomach and then follow tip #1.

Is it the buying opportunity of the decade?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey currently owns shares of AMZN in her personal portfolio.]

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Zacks Investment Research

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support@zacks.com

https://www.zacks.com/performance

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
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Synchrony Financial (SYF) : Free Stock Analysis Report
 
Aflac Incorporated (AFL) : Free Stock Analysis Report
 
Cimarex Energy Co (XEC) : Free Stock Analysis Report
 
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Zacks Investment Research