U.S. Markets close in 2 hrs 49 mins

Zacks Value Trader Highlights: MasTec, Macy's, Kansas City Southern, Allstate and Tesla

Zacks Equity Research

For Immediate Release

Chicago, IL – October 18, 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: 

5 Signs You’re a Value Investor

Welcome to Episode #161 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.

With growth stocks still out performing value in 2019, despite the “great rotation” over the summer when value was, briefly, hotter than growth, it’s a good time to be ask how you know if you’re even a value investor at all.

5 Signs You’re a Value Investor

1.       You are obsessed with Warren Buffett

Do you watch every interview on CNBC that Buffett does?

Do you read every one of Berkshire’s shareholder letters, attend the annual meetings because you’re a shareholder, or quote Buffett on social media?

An obsession with Mr. Buffett is one big sign that you’re probably a value investor yourself.

If you want to invest like him, you may want to consider MasTec (MTZ), an infrastructure company. Yes the shares are up big in 2019 but they’re still trading with a forward P/E of just 13.

2.       You love stocks trading at 52-week lows

Benjamin Graham, the father of value investing, has told investors to look for stocks trading on new 52-week lows.

If you enjoy looking at those stocks because you’re thinking you’re getting a bargain, you could be a value investor.

Macy’s (M) has been trading near its 52-week lows this year. It has a forward P/E of just 5.5.

3.       You buy and hold your stocks

Buffett has owned some of his stocks for decades. Have you? If so, you may also be a value investor.

What if you had bought Kansas City Southern (KSU), one of the big railroads, 10 years ago? Shares are up 411% versus 230% for the S&P 500 ETF (SPY) during that time.

4.       You love “boring” companies

Buffett has gotten rich owning some of the more “boring” types of companies including industrials, railroads, energy and, famously, insurance.

Allstate (ALL), a big property and casualty insurer, is cheap with a forward P/E of 11.1. It’s a Zacks Rank #1 (Strong Buy) which is expected to grow earnings by 20.2% in 2019.

5.       You never buy companies with negative earnings

If you don’t understand what all the fuss is about with Uber or Lyft, both of which don’t have positive earnings, you may be a value investor.

Tesla (TSLA) fans have said for years that Tesla would soon have positive earnings. In the meantime, shares have underperformed the S&P 500 over the last 5 years with a gain of just 10.5% while the S&P 500 rose 52%.

What else should investors know about being value investors?

Tune into this week’s podcast to find out.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

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.