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Zacks Value Trader Highlights: JP Morgan Chase, Bank of America, Royal Caribbean, Lululemon and Micron

Zacks Equity Research

For Immediate Release

Chicago, IL – February 28, 2020 – 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:

Value Investors: Where to Look for Stocks on Sale

Welcome to Episode #179 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.

It’s been tough to be a value investor in 2020 with stocks hitting new highs nearly every day.

But the coronavirus fears have awakened the bears. Stocks have staged a pullback, with some individual names already in a correction, which is 10% off the highs, and others are in a bear, which is 20% off their highs.

How do value investors find the bargains?

Look for Beaten Down Industries

Those that were values before the pullback, are going to remain values afterwards. In fact, investors tend to flee those stocks that are out of favor quicker in times of volatility.

That’s why the super cheap stocks right now are found in the hated industries like energy, retail and the banks.

No one wanted to buy stocks in those areas, even at the highs.

But you can get them much cheaper now.

5 Stocks for Your Wish List in 2020

1.       JP Morgan Chase (JPM) is among the best in class among the big banks. Shares have fallen 7% in the last week. It has a forward P/E of just 11.8.

2.       Bank of America (BAC) is even cheaper, with a forward P/E of 10.2. Shares have fallen 12%. It pays a dividend, currently yielding 2.3%.

3.       Royal Caribbean (RCL) has fallen 25% in just the last week on worries about travel and tourism. It now trades with a forward P/E of just 8.9. It has a dividend yield of 3.5%.

4.       Lululemon (LULU) is one of the top retailers in the world. Shares were hitting new all-time highs last week but are down 9.5% in the pullback. It has 38 stores in China. What will be the impacts? It’s still expensive, with a forward P/E of 41.

5.       Micron (MU) and the semiconductors were flying high into the news of the outbreak. The bottom of the cycle appeared to be in. Demand was up as were prices. But now? Micron is down 9.3% over the last week. It’s not cheap yet, with a forward P/E of 21.

What else do you need to know about looking for bargains right now?

Tune into this week’s podcast to find out.

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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.