(1:00) - Should You Continue To Invest In Growth Stocks?
(6:10) - Understanding FANG During A Down Market
(17:45) - Should You Be Buying The Dip Or Staying On The Sidelines?
(29:00) - Have A Plan That Works For Your Investment Timeframe
(34:50) - Episode Roundup: XOM, META, NVDA, MSFT, UNH, CNC, BIIB, LLY, ARKK
Welcome to Episode #331 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to discuss their favorite topic: what should investors do as stocks sell-off?
Should you sell? Or add further to your positions?
What do you do with growth stocks? Do you sell your FANGMAN stocks, which are down anywhere from 10% to 50% from their highs?
Or do you do…nothing?
Exxon’s Market Cap Overtakes Meta Platforms
This year, for the first time in 5 years, ExxonMobil’s XOM market cap has exceeded Meta Platforms META, one of the FANGMAN stocks.
Meta Platforms shares have fallen 18.5% over the last 5 years as shares have plunged this year.
But ExxonMobil shares are now up 16% over the last 5 years after gaining 56% this year.
ExxonMobil has been a value stock for years. Meta Platforms was a growth stock, often listed among the top stocks as one of the “FANGMANs.”
Is the tide turning in favor of value?
[As we talk about in the podcast, Kevin is reading the May 2022 book called Fossil Future by Alex Epstein. Tracey promised to link to it. You can find it on Amazon here.]
What’s Working and What’s Not
In addition to energy, investors have been fleeing to healthcare stocks for safety. Should you follow?
And they have been selling the big tech names, especially the semiconductors. Are the semi stocks oversold?
1. UnitedHealth Group UNH
UnitedHealth Group has been holding up during the 2022 sell-off. Shares are up 4.2% year-to-date while the S&P 500 is down 22.8%.
Over the last 5 years, UnitedHealth Group shares are up 164% compared to just 48.7% for the S&P 500.
UnitedHealth Group isn’t cheap. It trades with a forward P/E of 23.6.
It also pays a dividend, but it is only yielding 1.3%.
Is it too late to hide out in UnitedHealth Group?
2. Biogen BIIB
Biogen shares popped 37% recently after it announced its Alzheimer’s drug reduced cognitive decline by 27% compared to the placebo.
Shares of Biogen are up 11.5% year-to-date.
Biogen isn’t that expensive, with a forward P/E of 16.1. It does not, however, pay a dividend.
Should investors be buying Biogen after the big pop?
3. NVIDIA NVDA
NVIDIA is one of the big winners of the “FANGMAN” stocks. Over the last 5 years, NVIDIA has gained 190%.
But NVIDIA shares have taken a big dive in 2022, falling 55.2%.
Shares of NVIDIA are still expensive at 35x. It now has a Zacks Rank of 5 (Strong Sell).
NVIDIA has been one of Kevin’s favorite stocks. Is he buying it here on weakness?
What Else Should You Know About the Stock Market Sell-Off and Growth Stocks?
Tune into this week’s podcast to find out.
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Biogen Inc. (BIIB) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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