- (0:15) - Warren Buffett: 3 Hours of Televised Questions
- (2:05) - What Makes A Die Hard Value Investor: Secret Recipe
- (4:35) - Where is the Value In A Record Setting Market?
- (6:35) - Tracey's Top Three Picks: Investing Ideas
- (12:10) - Stock Ticker Recap
Welcome to Episode #32 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Warren Buffett continues to be in the news as Berkshire Hathaway released its annual letter and he appeared on CNBC for over 3 hours to answer questions from viewers.
It got Tracey thinking, what is it about Warren Buffett that makes him such a good value investor? Why can’t everyone invest like Buffett?
Tracey believes the best value investors have one special ingredient: guts. Buffett has what Tracey calls a “strong stomach.” He doesn’t panic when a stock slides and he buys more when other investors are fleeing.
This isn’t easy to do. Let’s be honest. Most of us don’t have the guts to stay in when things get rocky.
Some Stocks Still on Sale
But what about getting in after a stock has already sold off?
Stocks continue to hit new highs, but there are always some that are out of favor with the Street.
Tracey ran a screen of stocks that were down 10% or more year-to-date, had forward P/Es under 15 and had Zacks Ranks of #1 (Strong Buy), #2 (Buy), #3 (Hold).
59 stocks, including, not surprisingly, many retailers such as JC Penney JCP and Michael Kors KORS, came through the screen.
But if you exclude the retailers, there are still plenty of other interesting names.
3 Value Stocks that are on Sale
1. Aceto Corporation ACET is a small cap distributer of chemical compounds. Shares have fallen 30% year-to-date. It’s cheap, with a forward P/E of 10.
2. BG Staffing BGSF is a temporary staffing company based in Texas. It will hold an investor day on March 7. Earnings are expected to jump 28% in 2017. Shares have fallen 13% in 2017. It’s cheap too. It trades with a forward P/E of 12.8.
3. Hawaiian Holdings HA has been weak in 2017, as shares have fallen about 13%. If you thought you missed the airline rally, now is your chance. Its forward P/E is just 10.4.
What else does Tracey think about stocks that have gone on sale?
Tune into this week’s podcast to find out.
Want more value investing insights from Tracey?
Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks Tracey thinks are the best bargains now.
It holds between 20 and 25 value stocks for the long haul.
Click here to learn more.
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Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Aceto Corporation (ACET): Free Stock Analysis Report
J.C. Penney Company, Inc. Holding Company (JCP): Free Stock Analysis Report
Michael Kors Holdings Limited (KORS): Free Stock Analysis Report
BG Staffing Inc (BGSF): Free Stock Analysis Report
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Zacks Investment Research