For Immediate Release
Chicago, IL – June 4, 2021 – 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:
The Value Investor's Biggest Challenge
Welcome to Episode #238 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.
This week, it's time to consider the value investor's biggest challenge: how to be patient.
Most value investors are long-term buy and hold investors. But buy and hold means owning through some periods of underperformance, no matter what the company.
Even Amazon AMZN has had long periods where it has underperformed.
But when should you hold and when should you abandon ship?
The Hated Apparel Retailers
There are always industries that are out of favor on Wall Street.
For the past few years, two of the most "hated" industries were the apparel retailers and oil.
The Street believed for years that apparel retailers who operate in the malls like Chico's CHS, Express EXPR and the Gap GPS were doomed.
And then the pandemic hit.
Some of those stocks became dirt cheap. Chico's, for example, traded under $2 a share for months in 2020.
2021 Stock Winners
But 2021 has seen a change in the guard. The "hated" industries became the darlings of the Street, with many of the stocks staging big stock rallies.
Chico's, for example, is up 233% year-to-date even though it remains an underperformer over the last 5-year period.
Energy, surprisingly, has been the best performing sector this year.
Pioneer Natural Resources PXD, one of the large exploration and production companies, is up 45% year-to-date while the S&P 500 is up "just" 11.9%.
But is it really that easy to invest in the "hated" industries?
Find out all you need to know about being a patient investor on this week's podcast.
Legal Marijuana: An Investor's Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they've been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks' Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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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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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Chicos FAS, Inc. (CHS) : Free Stock Analysis Report
Express, Inc. (EXPR) : Free Stock Analysis Report
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